What is en bloc?
The phrase “en bloc” implies “in a lump or block,” “as a whole,” or “together”.
In Singapore, the en bloc process involves the sale of a property where most residents have collectively agreed to sell their homes to the same buyer, typically a property developer.
This practice typically involves older developments that could benefit from redevelopment and involves the purchase of all homes within a private development in a collective sale.
Recommended article: En bloc sales – How does it work?
What is included in the purchase of an en bloc sale?
An en bloc sale involves the sale of every condo unit within a development, as well as the land.
How does the sales process for en bloc sales work, and what are the potential benefits for homeowners?
The en bloc sales process can be lengthy. It can take more than two years before the sale is finalised. As a result, homeowners or subsidiary proprietors may have to wait a considerable amount of time before receiving their share of the proceeds.
However, developers usually pay premium prices for these properties, which can result in a substantial profit for homeowners who purchased their condos at a lower price point in the past.
What is the key difference between en bloc and Standard Property Transactions?
The key difference is the scale. Standard property transactions typically involve the sale of a single property to one buyer at market value.
In contrast, an en bloc sale in Singapore sells an entire private development at one time. This usually occurs when 80-90% of homeowners agree to the sale, often for a significantly higher price than their resale value.
Related article: What factors are necessary for a possible en bloc or collective sale?
What price can property owners expect to sell their units for?
An en bloc committee sets a reserve price for the sale in general, typically at a premium over the current market value. The buyer is usually a property developer or the government. They will try to match or negotiate the reserve price with the en bloc committee.
In a booming market, en bloc sales often surpass the predetermined reserve price
