Well, there are a few simple indicators that you need to check for when deciding whether your property qualifies for an en bloc sales or not.
We have highlighted a few such signs below to ease your en bloc sales process:
Rising real estate values in your area:
The biggest factor that contributes to en bloc sales in Singapore is the rising value of land as compared to the development.
Another big hint is when some big transformation is planned for your area; in such cases, all the unit owners in the concerned property are relocated to some other places.
Also, if your property is situated in close vicinity to some major transport links in the city, you may also experience en bloc at some point in life.
If the structure is wasting much land:
It’s well observed that the Penrose showflat location
and condo units these days are consuming less land space; the developers prefer to add more numbers of floors to the properties. It helps them to earn more per square meter of land while ensuring easier buying and selling opportunities.
As old condos and HDBs are built in an age where technology is not that advanced, they are constructed in a way where land is used inefficiently.
Therefore, such units are more preferred for en bloc. In short, if redevelopment of your property can lead to more profitable land use, it has a higher chance to qualify for en bloc.
Availability of alternative housing:
One crucial factor to consider for en bloc is the availability of alternative housing area for existing residents to be relocated.
Unit owners tend to be more agreeable to en bloc sales when they know they can move to other housing areas without much trouble. Residents should take into account the availability of housing area for relocation.
The real estate market is strong:
It’s observed that en bloc is more likely to happen when it is possible to ensure more value for the land by making some redevelopment.
In short, if the economic viability of the property can be enhanced with redevelopment, it can be a profitable decision to announce the en bloc of a development.
Readmore: Can Your Property Be Put Up for En Bloc Against Your Consent?