Industry players have called for a reduction in the majority consent threshold for collective sales—from 80 per cent to 70 per cent—to help unlock the redevelopment of ageing properties.
[SINGAPORE] The process for collective sales could become less onerous, as the government reviews the policies and regulations governing the collective sale regime under the Land Titles (Strata) Act, The Business Times has learnt.
Responding to queries, the Ministry of Law said it regularly reviews policies to ensure the optimal use of land resources. This includes the collective sale framework, which is intended to facilitate urban rejuvenation while maintaining safeguards to protect the rights of property owners.
“This includes the collective sale regime under the Land Titles (Strata) Act, which aims to support redevelopment while ensuring appropriate protections for owners,” the ministry said in a statement on Thursday (Nov 20).
Industry participants have long advocated lowering the statutory majority consent required for en bloc sales, particularly for older developments. Currently, properties more than 10 years old require at least 80 per cent consent by share value and strata area, while developments under 10 years old require 90 per cent approval.
Among the proposals raised by market players are a reduction of the threshold from 80 per cent to 70 per cent, or the introduction of tiered consent requirements based on the age of the development.
The ministry said it engages a broad range of stakeholders—including owners, developers, property consultants, lawyers, industry bodies and academics—and that feedback is carefully considered. Any proposals for reform will be announced when ready.
A change to the rules could reinvigorate stalled collective sale efforts, particularly for older condominiums and strata-titled commercial properties, many of which struggle to meet the current consent thresholds. This has hampered the redevelopment of ageing estates and buildings.
The review comes amid broader efforts to encourage the renewal of both private and public housing stock. In March, the Ministry of National Development announced that large en bloc redevelopments with at least 700 units—and which would yield at least 1.5 times the number of homes post-redevelopment—would be granted a six-month extension to their Additional Buyer’s Stamp Duty (ABSD) remission deadline.
For public housing, the government is also working to develop the framework for the Voluntary Early Redevelopment Scheme (Vers) during the current term of government, Minister for National Development Chee Hong Tat said in August. This includes setting criteria to identify suitable Vers sites, ensuring adequate replacement housing, and determining minimum consent levels and fair compensation for residents.
Christina Sim, senior director of capital markets at Cushman & Wakefield, said the industry has been pushing for a lower consent threshold for developments more than 40 years old, which often require significant capital outlays to address structural deterioration.
“Many older buildings are not energy-efficient, nor are they green or sustainable,” she said. “They have typically outlived their economic lifespan, as seen in ageing shopping centres struggling with vacancies. Over time, these become a financial burden on owners, who continue to pay maintenance fees, sinking fund contributions and property taxes.”
Karamjit Singh, chief executive officer of real estate consultancy Delasa, said lowering the threshold could also help resolve chronic deadlocks in collective sale efforts—especially in cases where a single owner holding more than 20 per cent of voting rights blocks a sale.
Desmond Sim, group chief executive officer of Realion (OrangeTee & ETC), said a change would benefit owners in developments where past en bloc attempts failed narrowly. This is particularly common in strata-titled commercial projects, where a small number of owners may hold a significant proportion of units.
“Reducing the threshold from 80 per cent could prevent majority owners from holding the rest to ransom and allow the sale to proceed,” he said, adding that fairness to owners and realistic pricing expectations for developers remain critical for deals to be concluded.
Even if the required consent is obtained, any collective sale must still be approved by the Strata Titles Board (STB). At that stage, dissenting owners may lodge valid objections, and the STB has the authority to halt the sale.
Terence Lian, head of investment sales at Huttons Asia, said a lower threshold could make collective sales more feasible for ageing developments with remaining lease tenures of around 60 years or less. Such properties often face rising maintenance costs, declining resale values and financing challenges for buyers.
However, market conditions will remain a key determinant of success. Singh noted that residential land values have been rising amid strong new project sales, which has in turn lifted owners’ price expectations.
Lian added that developers remain cautious, constrained by high land costs, ABSD exposure and construction inflation. “Only sites with realistic pricing, favourable planning parameters and strong redevelopment potential are likely to move forward,” he said.
Collective sale activity has been subdued in recent years, largely due to a persistent gap between owners’ price expectations and developers’ willingness to pay.
The most recent major residential en bloc transaction was the S$810 million sale of Thomson View to UOL and CapitaLand Development in July 2025. Smaller deals followed, including the S$22 million sale of Chiku Mansions in September and the S$56 million sale of River Valley Apartments in February.
Only four collective sale deals were concluded in 2024, and seven in 2023, compared with 39 transactions during the peak of the 2018 en bloc cycle.
According to Knight Frank data, just one-third of collective sale attempts between 2021 and 2023 were successful, down from a 63 per cent success rate during the 2017–2018 boom.