A successful en bloc sale is akin to a windfall for strata-title owners. Some lucky ones managed to hit the jackpot on their first attempt, while many others continue to fail despite multiple tries. Numerous factors need to align before a successful en bloc sale can take place.

Recently, there have been discussions about a possible review of the consent threshold by the government. A minimum percentage of owners (by share value and strata area) must agree to an en bloc sale before a tender can be launched. Currently, the consent threshold is set at 80% for developments that are 10 years or older, and 90% for developments that are less than 10 years old.

In this article, we will discuss the possible forms a new consent threshold (if implemented) might take, as well as its potential impact on the en bloc market. We will also examine the potential impact on the en bloc market if the consent threshold is revised.

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A timely review?

While failure to reach the consent threshold is not the only reason for an unsuccessful en bloc sale, market observers believe that a review is timely.

Mark Yip, CEO of Huttons Asia said “It is good to review the policy so that rejuvenation and potential intensification of land use can take place. This is crucial in land scarce Singapore.”

A lower consent threshold could potentially benefit some developments that are unable to achieve the required number of signatures despite multiple attempts.

Swee Shou Fern, head of investment advisory at ETC – a member of Realion Group observed that “revising the threshold could potentially help to gather the required number of signatures for the collective sale to proceed to the tender stage. A lower threshold – particularly for much older developments facing rising maintenance costs and structural deterioration – could help these estates move forward, especially where fragmented ownership has made it difficult to raise funds for upgrading. This is also relevant for older commercial and mixed-use properties where outdated layouts and high vacancy have eroded asset performance.”

A lowered threshold will definitely benefit owners who support the en bloc sale, but opposing owners may face greater challenges in stopping it.

Donald Goh, director of capital markets and investment sales from ERA says: “Their apprehension often stems from personal attachment to their homes or uncertainty about relocation. Ensuring that safeguards and fair compensation frameworks remain robust will therefore be important in addressing these concerns.”

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Another reason could be owners’ concerns about rising replacement costs. From 2020 to 2025, the average resale price of freehold condos islandwide rose by 27.9% to $1,941 psf, while that of 99-year leasehold counterparts increased by 39.4% to $1,705 psf (see Chart 1).

A similar trend has been observed for new condos. From 2020 to 2025, the average new sale price of freehold condos increased by 26% to $2,781 psf, while that of 99-year leasehold condos surged by 49.9% to $2,595 psf (see Chart 2).

Replacement costs would be even higher if the en bloc condo unit is an investment property, as Singaporean buyers have to pay additional buyer’s stamp duty (ABSD) when purchasing two or more residential properties. Foreign buyers will be affected even more, as the ABSD rate for them has doubled from 30% to 60% since April 2023.

Yip says that “if the property is an investment property, some owners may not reinvest in another property because of the higher ABSD on second or more property.”

He adds “With the 60% ABSD on foreigners, the replacement cost of a home for a foreigner who owns a prime Core Central Region (CCR) home is extremely high. They may have to move to the Outside Central Region (OCR) if their development gets en bloc. Hence, they are not likely to vote in favour of an en bloc.”

Furthermore, some owners may have to pay seller’s stamp duty (SSD) if they had bought their unit shortly before a successful en bloc sale and hence have not fulfilled the required holding period. For residential properties bought on or after July 4, 2025, the required holding period is four years, and the SSD rate is 16% if the property has been held for less than a year. The applicable SSD rate decreases by four percentage points for each additional year of ownership.

Read also: PropNex proposes policy shifts to support housing market ahead of Singapore Budget 2026

Should the threshold be lowered?

A lowered consent threshold will likely be welcomed by unit owners of older developments, especially leasehold ones with short remaining land leases. In addition to expiring land leases, older developments are more likely to require repairs and replacements due to wear and tear, and some may have insufficient funds to finance these works. Furthermore, lease decay and ageing facilities usually place downward pressure on property prices.

Older commercial buildings also tend to be less energy-efficient and have outdated floor layouts that are unsuitable for today’s users. A successful en bloc sale of such developments would see the older building replaced by one that is more sustainable and equipped with the latest technology. Building owners will also benefit from the higher rents generated by the new building.

Last year, the average resale price of 99-year leasehold condos that are 20 years old or younger was $1,818 psf, significantly higher than the $1,171 psf achieved by counterparts older than 40 years (see Chart 3). Older condos also reported a lower price growth of 26.7% from 2020 to 2025, compared with the 33.4% increase recorded by their younger peers.

A successful en bloc sale could be the solution to the owners’ woes. If the consent threshold is lowered, more developments might be able to gather sufficient signatures to launch an en bloc tender. However, this may not necessarily translate into more successful en bloc sales.

According to ERA’s Goh, “market timing, pricing expectations, location, demand and supply will continue to play a critical role in whether a collective sale can be concluded.”

He adds: “That said, if more developments enter the en bloc market compared to recent years, the overall probability of successful transactions will naturally increase. As a result, we may see a modest rise in the number of sites sold, provided broader market conditions remain supportive.”

What form will it take?

The government has yet to make any announcements on the details of a revised consent threshold. However, market observers believe the threshold could be lowered to 70% for developments older than 10 years. Others suggest that a tiered threshold based on the age of the development should be introduced.

Norman Ho, senior partner at Rajah & Tann Singapore thinks that developments that are 30 years or younger are still relatively new.  However, he concurs that the consent threshold should be lowered and suggests a threshold of 70% for developments that are above 30 years.

Ho says “In this age of sustainability and ESG [environmental, social and governance concerns], it is pointless to speak of urban rejuvenation if the building is less than 30 years (the present Act even mentions 90% consensus for development less than 10 years) and having a lower threshold would avert a situation where many major strata owners (like those with ownership of car park lots with about 20% ownership) blocking the collective sale exercise.”

Last year, Chiku Mansions and River Valley Apartments were the only residential developments that were sold successfully via en bloc. Both are freehold condos that are more than 40 years old.

However, ETC’s Swee says “A tiered approach that applies a lower requirement only to significantly older developments could strike a better balance between enabling renewal and protecting minority rights. Currently, 90% owners’ consent (in both strata area and share value) is required for developments less than 10 years old, and 80% owners’ consent is required for developments more than 10 years old.”

Swee adds: “An additional tier of 70% owners’ consent for developments more than 50 years old will be helpful to facilitate the rejuvenation of older estates.”

Likely impact on the en bloc market

A lowered consent threshold could lead to more en bloc launches, offering developers a greater selection of sites. However, this may not necessarily result in more successful en bloc sales. Given the weaker economic outlook this year, developers are expected to remain cautious.

Based on recent estimates from the Ministry of Trade and Industry (MTI), Singapore’s GDP grew by 4.8% y-o-y for the whole of last year, on the back of a strong 15% y-o-y growth chalked up by the manufacturing sector, driven by output expansion in the biomedical and electronics sectors

Export growth for several of Singapore’s key regional trading partners, such as China and Vietnam, remained robust last year. However, the impact of US trade tariffs is expected to weigh more heavily on Singapore’s key trading partners this year, leading to slower economic growth. Prevailing geopolitical tensions are also expected to continue affecting the global economy. Faced with these headwinds, MTI projects that Singapore’s GDP is likely to grow at a slower pace of 1% to 3% in 2026.

Furthermore, some developers may prefer to turn to sites sold via the Government Land Sales (GLS) programme to replenish their land supply. The clearer planning parameters, transparent bidding process and more certain development timelines could explain their preference.

Additionally, recent GLS programmes have provided developers with sufficient sites. The number of GLS sites with a residential component has remained high over the last few years. As a result, the number of upcoming condo units from GLS sites has remained well over 8,000 per year. (see Table 1). Several sites also have attractive locations or are in neighbourhoods slated for transformative changes.

Summing up, Swee says “Regardless of the final form, a lower threshold alone is not a silver bullet. Realistic pricing, a transparent process and an equitable apportionment framework remain key to building trust among owners and ensuring developers find the site viable. If adjustments to the threshold are made, we may see a gradual pickup in collective sale activity, especially among smaller to mid-sized residential sites.”

Swee adds “In the current environment, these are more manageable for developers – particularly in contrast to the larger GLS plots coming onstream, which typically yield more than 200 units each. These private sites can then help bridge gaps in land supply and offer developers more options in project scale.”

Potential impact on the HDB resale market

There is a 15-month wait period for homebuyers who wish to purchase a resale HDB flat after selling their private residential property. However, senior citizens aged 55 years and above are exempt from this wait period if they purchase a four-room or smaller resale HDB flat. This means that former owners of condos sold via en bloc will have to rent a home during the mandated wait period. Consequently, not many are expected to turn to the HDB resale market for their replacement home.

The 15-month wait period was first introduced in September 2022, so the first tranche of sellers affected by this regulation would have fulfilled their wait period in 2024. However, there was no noticeable price surge for four-room or five-room resale HDB flats that year.

From 2023 to 2024, the average resale price for four-room flats rose by 7.5% y-o-y, compared to an increase of 6.3% y-o-y to $656 psf last year. Likewise, the average resale price for five-room flats increased by 6.3% y-o-y from 2023 to 2024, compared to a 6.9% y-o-y growth to $617 psf last year (see Chart 4).

However, this does not preclude some senior citizens, who are exempt from the wait period, from right-sizing to a resale HDB flat and saving the remaining en bloc windfall in their retirement fund.

Conclusion

While market observers have different opinions on what the eventual revised consent threshold should be, all agree that the new threshold (if implemented) could be a game-changer for the en bloc market.

A lower threshold is likely to lead to more en bloc tenders being launched, but more successful en bloc sales may not necessarily follow, as developers contend with a weaker economic outlook for Singapore this year. Furthermore, some developers may prefer GLS sites, which offer greater clarity in terms of planning parameters, bidding process and timelines.

Meanwhile, the 15-month wait period is expected to somewhat insulate the HDB resale market in the event of more successful en bloc sales. Due to the wait-period, fewer homebuyers are likely to purchase a resale HDB flat as a replacement home.

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