Category: Collective / Enbloc Sales

Collective Sales, often known as en bloc is a property transaction with 2 or more units in the whole development being sold to a single purchaser, often a property developer. Depending on the size of the development which can be 2 units to more than 1000 units, the respective homeowners join together to sell their unit with a golden handshake.

In a development that is less than 10 years old, more than 90% has to consent to the collective sales. For development that is older than 10 years, more than 80% must consent for the sale to go through at the expense for those who opposed to the sale.

Collective sales result in the sudden surge in millionaires as often developers pay a premium for those to sell, although some minority will not be keen to sell, whether for sentimental values or blessing. The silver lining is often the price where owners often get a windfall for their unit.

Why the need for En bloc?

As a development aged, wear and tear will occur or even leakage. Or as city progress, the old development has to upgrade to blend in with the tides of time. However, there would be some who would not want to move because they love the location and they know that once they sell their property, they will not be able to buy back the same location at the same price.

Thus the collective sales 80% mark was a balance to go with the majority for the collective sales.

Processes involved in Collective Sales

1) Getting Started

  • Property owners want to sell together collectively in the hope of higher price rather than selling individually.
  • Developer interested in re-developing the site and approach the development owners and negotiate with them to vote and sell collectively.
  • Fund management or company approach the owners and negotiate with owners with an offer.

2) Setting up of Pro-Tem Committee

Pro-Tem committee handle organising Extraordinary General Meeting (EGM) and rallying support to get fellow owners to sell collectively to hit the 80% threshold.

3) Appointment of Professionals

Once there is enough vote for the collective sales to proceed,   the pro-tem committee will have to get a lawyer to draft all the necessary legal document and also appoint valuer and property consultant to market the development.

Proper Timeline and course of actions has to be accounted to the owners as to when to vacate and when they get paid.

4) Sales by Tender

If the owners group together to start the collective sales, then development will then be marketed to buyers and developers, which normally handle by the property consultant and then cross finger see which are the highest bidder and if it exceed expectation.

5) Strata Titles Board Application

In the event that there’s no 100% approval to sell, Strata Titles Board will step in to review in a case by case basis to determine and justify if respective suffered financial loss as a result of this collective sales.

Strata Titles Board will reject the en bloc application if in any case the protesting owners suffered a financial loss as a result of this en bloc case.

6) Setting up Timeline

Once the Strata Title Board approve the en bloc case, the owners will be schedule a timeline for them to get their proceed so that they can buy another development and can vacate the place at a specific timeline.

Those with tenants will also have to vacate the place, often with some form of compensation.

Frequently Asked Questions (FAQs)

What is Collective Sales / enbloc about?
Collective Sales, often known as en bloc is a property transaction with 2 or more units in the whole development being sold to a single purchaser, often a property developer.

How long is the enbloc process?
The entire enbloc process will take from 18 to 40 months from the time an enbloc committee is formed, place it up for tender, to bid from accepted by owners to them moving out.

What is enbloc reserve price?
Enbloc reserve price refer to the minimum sum that developer has to bid before the enbloc committee / owners will consider. 

How many percentages of owners have to approve before the enbloc can proceed?
If the development is less than 10 years old, 90% of the owners has to approve the enbloc sales, otherwise, at least 80% of the owners has to approve the sales.

What happen after a successful enbloc?
Once the enbloc is successfully completed, owners has to move out from their premises or can also opt to stay for another six months while they find their next home.

Latest en bloc / Collecting Sales Breaking News

Kew Lodge enbloc to Aurum Land for $66.8m

Woh Hup’s subsidiary Aurum Land paid S$66.8 million in an enbloc sale for a freehold landed residential property on Kheam Hock Road called KEW Lodge, which is a 5% premium above the guiding price of S$63.8 million.

Read More


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