\n<\/p>\n
There is also strong competition from Government Land Sales (GLS), which some developers prefer as they can be more straightforward, said Mr Terence Lian, Hutton\u2019s head of investment sales.\u00a0<\/p>\n
“Whereas for en bloc sites, you’re facing regulatory requirements. Usually, developers will give owners another six-month rent-free period before they can demolish the development. So, there’s (also) a holding cost,\u201d he noted.\u00a0<\/p>\n
\u201cThat said, if a site has the right, realistic pricing, you\u2019ll still be able to find a buyer to acquire the site.\u201d\u00a0<\/p>\n
Provost Chair Professor Sing Tien Foo at the National University of Singapore (NUS) Business School\u2019s real estate department said the review is timely to ensure land in Singapore remains efficiently used, especially in prime areas.\u00a0<\/p>\n
\u201cThis is part of the urban renewal process, so that the older buildings that were not built (as high) or not as densely built will be demolished and give way to a newer development,\u201d Prof Sing said.\u00a0<\/p>\n
He added that pressure for en bloc sales will likely increase as more flats reach the end of their lease.\u00a0<\/p>\n
Currently, over 30 per cent of condominiums in Singapore are at least 30 years old. The figure is expected to rise to 40 per cent in the next decade.<\/p>\n
Real estate agency ERA estimates that there are 2,703 condo developments in Singapore today, covering both leasehold and freehold projects.\u00a0<\/p>\n
Of these, 836 \u2013 or 31 per cent \u2013 are at least 30 years old. This number could increase to 1,160 by 2035, assuming none is sold en bloc.<\/p>\n
The Ministry of Law said proposals for reform will be announced when they are ready.<\/p>\n<\/div>\n