Does my property have en bloc potential?

During the en bloc craze some 18-24 months ago, many of the beneficiaries became overnight millionaires. A millionaire, overnight. I doubt there is any other phrase as sexy. As such, many of the rest of us will be wondering if we too can join their esteemed ranks. How would we know if our condominiums, or even HDBs, have en bloc (Selective En bloc Redevelopment Scheme (SERS) in HDB context) potential?

1. Rising land value

If the land value overtakes the property value of your home, then this is an incentive for the government to conduct SERS for your area or for developers to purchase your condominium. That is why it is common to see very old developments go en bloc, where the developer is essentially more interested in the land rather than the physical building.
For SERS, a good indication would be if the government has announced that they plan to “transform” or “rejuvenate” your area. An example would be when it was announced that $31.1 million will be used to “transform” Woodlands from a “sleepy suburb” to a “high traffic hub” in 2014. Six HDB blocks in that area enjoyed SERS.
Since the land component is of more interest to developers, it is no surprise that properties with higher land values probably have a greater chance of going en bloc. Centrally-located and well-connected properties are more likely to attract a developer’s interest.

2. Plot Ratio and space efficiency

A plot ratio increase is very likely to turn some developers’ heads in your direction. This is because it means that the land-use can be intensified, allowing the developer to build more on the land (which will, in turn, mean more profits for them). Plot ratio increases are reflected in the Urban Redevelopment Authority’s (URA) Master Plan, which is updated every 5 years. To check the plot ratio of your property, simply head to URA Space that is available on URA’s website.
Large open-air carparks in condominiums are also an indicator that the land can be used more efficiently, meaning that there is en bloc potential. Developers who purchase the...