Enbloc Process for Properties in Singapore

Are you wondering what en bloc entails and if there is any potential in it? The subject is a bit complicated than many people think of it. In this guide, we help you understand the basics of en bloc and what it brings to the Singapore real estate investors. The latest enbloc will be Juniper Hill and is the former Crystal Tower Enbloc by Allgreen Properties

The term “en bloc” is of a French origin which means “all together”, and when used in the Singapore real estate context, it refers to the “collective sale” of properties. When selling your home collectively, you put up everything for sale, including the land, to either the government or a real estate developer.

Enbloc Process for Properties in Singapore

The en bloc process takes quite some time – up to 2 years – and have some requirements that you have to meet before you can sell your property. If, for instance, you have owned the property for more than 10 years, then the owners with more than 80{c248ccb851fcb00035f8dc8856af83a9cb90a2f122c866493a8be3e1cf86a01d} share will have to agree to the arrangement before the property is sold. For properties whose ownership is less than 10 years, then the required percentage share agreement must be above 90.

A property can only be sold on en bloc terms when property developers are interested in the land where your property stands. Having an experience in market value, development options, and other aspects of property development, they can tell if there is a better investment that can bring in higher returns when they buy the land. For this reason, they are willing to pay more than the average market resale value.

Enbloc Process maybe Time Consuming

En Bloc sales take quite a long time than individual property sales. The reason is that it takes long before most residents on the piece of land accept to vacate their homes. It means the property developers have to take time and convince the residents to move out, obviously after paying off very attractive revenues.

Possibility of Enbloc for your Property

Remember that to qualify for En Bloc, your property must be positioned in a place where the land attracts high demand. To identify if there is any possibility, you will watch the market trend in your area and see if the demand for land is growing. New developments and setting up new MRT stations could be the indicators of the rise in demand of the land in your area.

Land developers are also interested in places where there are old buildings which have not utilized the entire space. By buying the land, they can build up big structures that use up every single inch so they can create many residential and business premises that earn them higher returns. If your development, however, covers an extensive area, then the developers might not be interested.