High maintenance costs likely behind bids to sell en bloc

There are many factors besides financial gains as to why selling en bloc happens (Selling en bloc: Are residences not built to last?, by Ms Koh Hui Hwa; Dec 20).

Based on past sales, many of the estates that have been sold en bloc are mature ones, or at least 30 years old.

Such estates are usually in dire need of maintenance, which can be very costly.

Residents may be looking for an out as they do not want to spend exorbitant amounts on maintenance.

When the opportunity to sell en bloc arises, it is worthwhile to act, as many estates have a lease period of 99 years, with prices of individual units starting to fall once the estate has reached a certain age.

There is no reason for earnings from collective sales to be taxed, as when a home is sold at a high price, a new home likely has to be bought at a high price too.

Kumar Pillay Thangavalu

A version of this article appeared in the print edition of The Straits Times on December 23, 2017, with the headline 'High maintenance costs likely behind bids to sell en bloc'. Print Edition | Subscribe