The government is reviewing En Bloc rules – here’s what we know so far

Talk about collective sales has surfaced again, especially after a letter linked to Neptune Court started circulating online. This long-standing estate, built in the 1970s for civil servants, has seen several privatisation attempts over the years. The latest development came when its owners’ association shared that a group of residents had gathered enough initial support to form a collective sale committee. 

The same letter also hinted at possible updates to en bloc rules next year, which quickly drew public attention – and as it turns out, the Government is now reviewing Singapore’s en bloc framework.

Government reviewing the collective sale regime

To begin with, the Ministry of Law has shared that it is actively studying the policies set out under the Land Titles (Strata) Act. This review focuses on how the collective sale system can better support long-term planning. The goal is to encourage good land use, help older areas rejuvenate over time, and still make sure that property owners like you remain protected throughout the process. While no specific changes have been announced yet, the confirmation of this review signals that updates could be on the way.

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Growing calls to lower the consent threshold

At the same time, you may have seen industry players pushing for adjustments to the existing consent requirements. Right now, you need approval from at least 80% of owners if your development is more than 10 years old. For projects younger than that, the bar is even higher at 90%. These percentages have long shaped how collective sales work.

However, many in the industry believe the thresholds are too high, especially for older estates. Because of that, some have suggested lowering the 80% mark to around 70%. Others have proposed a tiered system, where the required approval changes depending on how old the property is. These ideas are still being explored, but they show how strongly the market feels about improving the current process.

Why the industry supports lowering the threshold

Many older developments face issues that make redevelopment more appealing. You may already know of estates dealing with high repair bills, ageing structures and outdated features. Some buildings also lag behind today’s energy standards, which makes them less efficient and more expensive to maintain. In the commercial space, older malls have struggled with empty units and weaker foot traffic.

There are also cases where one owner with a large shareholding can block an entire collective sale attempt. This can be frustrating for other owners, especially when the development is already facing rising upkeep costs. With so many factors at play, it’s clear why the industry sees value in easing the approval rules.

Possible benefits of lowering the threshold

If the thresholds are reduced, you may see more progress in developments that have been stuck for years. A lower bar could help unblock stalled en bloc attempts and give older condos, especially those with around 60 years left on their leases, a better chance of moving forward. These estates often struggle with high maintenance costs, weaker resale demand and buyers who find it harder to secure financing.

In commercial strata projects, a change in thresholds may also reduce cases where a small group of owners can hold back the rest. This could support smoother negotiations and fairer outcomes.

But lower thresholds won’t solve everything

Still, you should not assume that a reduced threshold would automatically lead to more successful sales. Market conditions continue to play a major role. Rising land values have pushed up price expectations among owners, making it harder for developers to meet those figures. 

On the other side, developers are dealing with higher construction costs, land price pressures and ABSD risks. Because of this, only sites with realistic prices and strong redevelopment potential are likely to succeed.

Here’s what analysts are saying

Although the industry has been vocal about lowering the threshold, analysts say the impact of any change will depend on how various forces interact. Mr Low Choon Sin from SRI noted that a revised threshold could give the collective sale market a helpful nudge, especially at a time when more land is being released through the Government Land Sales (GLS) programme. This combination could create more balanced opportunities for both private sites and GLS plots. Moreover, many older estates are already facing rising repair bills and ageing infrastructure, which may make redevelopment feel more urgent to owners. With that in mind, a lower threshold could make it easier for these developments to start conversations that have stalled for years.

However, other analysts urge caution. Mr Lee Sze Teck from Huttons highlighted that changing the numbers alone will not transform the market overnight. In his view, owners’ price expectations remain the biggest hurdle. Even if the process becomes easier on paper, developers will still walk away from sites that are priced too aggressively or offer limited redevelopment potential. He also suggested that developments under 10 years old should continue to meet the 90% requirement since newer projects have less need for redevelopment.

Taken together, analysts agree that a lower threshold could make the path smoother, but it won’t automatically unlock a new wave of collective sales. Instead, any real shift will depend on how owners price their units, how developers assess risk and how the broader property market moves in the coming years. What these views show is that threshold changes may create momentum, but the success of each sale will still come down to the individual site.

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