New requirements such as a more stringent appointment process for Collective Sale Committee, the requirement for the appointed lawyer to explain the Collective Sale Agreement and the 5-day cooling off period may douse the en bloc fever for a long time to come.

The new rules were passed in Parliament in mid-September and they aimed to make the sale process more regulated and transparent.

As it is, the definition of majority consent includes 80% of the building’s gross floor area, over and above the original requirement of 80% of share value for projects older than 10 years. Sale is strictly by auction or tender, which means that the sellers must already have the consent level met before they could market the en bloc project.

The changes will apply to all developments that have not obtained the mandatory majority consent from at least 80% of owners by share value, or 90% for estates less than 10 years old. (4 Oct)

Edited by Sam Gian – Independent Real Estate Sale Consultant and trainer