Ageing properties may get better shot at en bloc sales with proposed lowering of consent thresholds

SINGAPORE – Ageing developments could get a better shot at taking collective sales across the finish line under proposed changes to lower the en bloc consent threshold from the current 80 per cent.

Projects between 40 years and 59 years old could have this threshold lowered to 70 per cent, while the threshold for those 60 years and older could be lowered to 65 per cent. 

Consent thresholds for newer developments will remain unchanged. Those that are between 10 years and 39 years old need the green light from 80 per cent of owners by share value and strata area, while for properties under 10 years old, 90 per cent consent is needed.

These are among several proposed amendments to the Land Titles (Strata) Act introduced in Parliament on Aug 4, which come nearly three decades after the current consent thresholds for collective sales were first introduced in 1999. 

Since then, many developments in Singapore have aged significantly, requiring substantial investment for maintenance, repairs or upgrading works to remain safe and liveable.

According to official records within the government, more than 360,000 private non-landed residential units are below 40 years, while about 20,000 private non-landed residential units are above 40 years. As Singapore’s private housing stock ages, these numbers will rise. 

Older developments tend to see rising maintenance costs and depleting sinking funds, making it harder for owners to keep their homes liveable.

The Bill also proposes to increase safeguards for owners who do not support a sale, and make it easier for such sales to proceed for non-strata-titled private residential developments where the flat owners own long leases, but do not own the underlying land.

Currently, such developments are not covered by the collective sale regime, meaning that a sale is only possible if there is unanimous agreement among flat owners and landowners. Examples include Neptune Court, One Tree Hill Mansions, Paterson Court, Orchard Court and Townhouse Apartments.

The proposed amendments will allow such developments to undergo a collective sale by majority consent, with safeguards to protect the interest of the landowner.

Currently, these developments can undergo collective sale by majority consent if the flat owners own flat leases of at least 850 years. Under the enhanced regime, those that own flat leases of less than 850 years will also have the same rights. 

This latest push to revive the collective sale market, which has remained largely tepid since the last en bloc boom of 2018, comes a week after changes were announced to nudge developers to undertake mega redevelopment projects.

Under this move, announced on July 28, a critical sales deadline for developers of large collective sale sites was extended to up to seven years.

In November 2025, the Law Ministry had also said it was reviewing policies and regulations under the Land Titles (Strata) Act.

This came after a letter circulated online from the Neptune Court Owners’ Association earlier that month suggesting the threshold for properties sold en bloc could be lowered.

Stronger safeguards for dissenting owners

The Bill also proposed strengthening safeguards for non-consenting owners in collective sales. 

Proposals include raising the threshold to initiate a collective sale attempt by requiring at least 35 per cent of owners – by share value or the number of units – to sign the requisition to convene a general meeting of the management corporation to form a collective sale committee (CSC). 

This is an increase from the current 20 per cent or 25 per cent, and is aimed at ensuring that collective sale exercises are only initiated when there is sufficient support. 

To address concerns about prolonged pressure faced by non-consenting owners, the time period that CSCs have to obtain signatures to the collective sale agreement will be cut to six months from 12 months. 

After a failed collective sale attempt, stricter rules will apply for subsequent attempts made in the next three years, instead of two years as is currently the case. 

Any attempts to convene a general meeting to form a CSC will be subject to heightened requisition thresholds. This is aimed at prohibiting repeated attempts where support remains insufficient. 

Currently, during this restriction period, the first retry will need to meet a threshold of 50 per cent either by share value or total number of owners, the Law Ministry said.

Subsequent retries during the same restriction period will need to meet a higher threshold of 80 per cent.

Under the proposed changes, the threshold for the first retry will remain the same. However, the threshold for subsequent retries will change to 70 per cent for properties aged 40 to 59 years old, and 65 per cent for developments aged 60 years and older.

If the Bill is passed, these changes will apply to ongoing collective sale exercises where the first signature to the collective sale agreement has not been obtained as of the date the amendments come into force.

The existing framework will continue to apply if the first signature was obtained before the commencement date to preserve fairness for those who had already signed. 

However, CSCs that are in the process of gathering signatures to the collective sale agreement as at the commencement date will be allowed to decide whether to terminate the existing agreement, and approve terms for a new agreement that will be subject to the enhanced regime.

These CSCs will be allowed seven months from the commencement date to obtain the mandate for the new collective sale agreement to ensure that these efforts are not excessively prolonged.