Wat is en bloc sales?

Question

just saw the news bout vandalism regarding en block sales in sg. i would like to know wat is the meaning on en block sales? and why are people so mad at it?

Answer 1

En bloc sales refer to owners that agree to sell their units collectively to a developer for a tidy profit. Current legislation require 90% of the owners to agree to the sale if the development is 10 years old or less and 80% if it is more than 10 years old.

There are people who oppose the sale despite the huge profit that they can get because there like their home and surroundings, have emotional attachment for various reasons and enjoy company of good neighbours. The recent vandalism cases smack of gangsterism which is really appalling in a low crime country whose leaders hope to build a gracious society.

It has been reported before that there are a few opportunisitc individuals who buy property based on their judgement that it will be sold enbloc in the near future. So don't get too friendly with the new neighbour who may be simply one of those trying to force you out for a quick buck.

Answer 2

It means all the owners of separate units in an apartment, condominium or even an office building,band together to collectively sell out their properties to a developer for comprehensive redevelopment.

En-bloc sale can be conducted-commonly either by way of private treaty or tender.

In Singapore,enbloc sales had been around since 1994 when the government reviewed the development guidelines including those in plot ratios & more intensive development of land areas.But there was a requirement for unanimous approval, i.e. all of the owners in the development must agree to the sale.  

Towards the end of 1997 to August 1999, there was few if any enbloc sales,due to the region's economic crisis,over-supply & some minority owners holding back on the enbloc sale for no justifiable reason or abusing their rights in the agreement.The 100% owner approval ruling was revised in 1999.

In 1999,the enactment of a new legislation which required only 90% of the owners to agree to the sale if the development is 10 years old or less and 80% if it is more than 10 years old,resulted in 40% of around 70 public tenders for enbloc sales completed.Unless it is 100% agreement,the Strata Titles Board (STB) will make the final approval.

En-bloc frenzy-owners who wanted to sell were so unhappy with owners who had not signed-have their cars vandalised.