Freehold property with high chances of collective sale

When considering freehold properties with en-bloc potential in Singapore, several key factors come into play:

Tenure and Age

Freehold properties are highly favored by developers for en-bloc sales because the Government Land Sales (GLS) program no longer releases freehold plots. Older freehold properties, particularly those over 10 years old, are more likely to be targeted for collective sales, as only 80% of the owners need to agree to the sale, compared to 90% for properties less than 10 years old.

Neighborhood Development

Properties located in well-developed neighborhoods with improved accessibility, such as new train stations and amenities, are more attractive for en-bloc sales. These areas tend to have rising property prices, making the redevelopment more marketable and profitable for developers.

Plot Ratio and Land Price

Properties with a favorable plot ratio, lower development charges, and higher land prices compared to surrounding areas are more likely to have en-bloc potential. The size, shape, and access to major roads, as well as proximity to MRT stations, also play significant roles.

Market Conditions

The en-bloc market is influenced by broader market conditions, including interest rates and government policies. For instance, high interest rates and additional buyer's stamp duty (ABSD) can dampen developer appetite for en-bloc sales. However, with stabilized interest rates and a clear demand for reasonably priced projects, the en-bloc market is poised for a gradual recovery.

Owner Resistance

One of the main challenges in en-bloc sales is the resistance from owners due to the high cost of replacement properties. Owners often seek a premium for replacement costs, which can make the sale price beyond what developers are willing to pay. Additionally, the increased ABSD rates can further complicate the process, especially for foreign property owners.

Recent Trends

In 2025, there are signs of renewed interest in en-bloc sales, driven by successful launches and shifting market conditions. However, the market is not expected to return to the feverish levels seen in 2017 and 2018. Developers are likely to focus on well-priced en-bloc opportunities, keeping the market alive but at a more subdued pace.

For buyers looking to purchase a freehold property with en-bloc potential, it is crucial to conduct thorough research and consider the long-term view, including the potential for collective sales and the overall market conditions.