Advocates for reducing the consent thresholds for en bloc sales argue that such a change is essential for the revitalization of Singapore's ageing properties. By lowering the required consent from 80% to 70% for developments over 10 years old, the government can expedite the redevelopment process, leading to improved living conditions and more efficient land use.
Older developments often face challenges such as rising maintenance costs and structural issues. A lower consent threshold would make it easier to gather the necessary majority consent, enabling these estates to move forward with redevelopment plans. This is particularly relevant for mixed-use properties where residential owners may hold a substantial number of units but less share value, making it difficult to achieve the current consent requirements.
Industry players have emphasized the importance of urban rejuvenation in land-scarce Singapore. Lowering the consent threshold aligns with the government's objective of optimizing land resources and promoting sustainable development. It also addresses the issue of fragmented ownership, which can hinder the collective sale process.
While concerns about minority owners' rights are valid, the proposed change aims to balance the need for redevelopment with the protection of individual interests. The government has indicated that it will consider these perspectives during its review of the collective sale regime.