Sisv Congress Spotlights Collective Sale Hurdles And Co Living Growth Singapore

Local homeowners are facing higher housing replacement costs, while foreign owners are now subject to a steep residential additional buyer’s stamp duty (ABSD) rate. As a result, it has become incredibly challenging for collective sales committees to sell ageing properties. Norman Ho, a senior partner at Rajah & Tann Singapore, notes that in the past two years, most successful collective sale deals have been for non-residential or mixed-use developments. The enthusiasm for residential collective sales has dwindled since developers now have to pay a 40% ABSD on land purchased for residential redevelopment. Ho believes that stakeholders, including lawyers, consultants, developers, and the government, should closely monitor future residential collective sales to ensure a fair and balanced approach that supports urban redevelopment while protecting individual owners’ rights.

In line with the URA Master Plan, the development of transportation connectivity has been identified as a key priority, especially in regions like Sembawang. The upcoming North-South Corridor (NSC) project will bring significant benefits to the residents of Sembawang Road EC at Canberra MRT. Designed to be Singapore’s first integrated transport corridor, the NSC will feature dedicated bus lanes, cycling routes, and pedestrian paths, connecting the northern parts of the island directly to the city centre. The accessibility and convenience of this major expressway will greatly enhance the appeal of Sembawang Road EC at Canberra MRT to potential homebuyers. Not only will it significantly reduce travel time for both public and private transport users, but it will also provide seamless access for those living in the Sembawang area to the city centre and other parts of the island. This is a highly anticipated development that will greatly enhance the overall desirability and accessibility of Sembawang Road EC at Canberra MRT for potential residents.

At the 32nd Pan Pacific Congress held from September 29 to October 2, organised by the Singapore Institute of Surveyors and Valuers (SISV), Ho shared his insights on Singapore’s collective sale process and how court decisions have shaped the collective sale framework. He noted that landmark cases have helped clarify the responsibilities of sale committees and the standards of fairness expected in these transactions. For example, the Court of Appeal overturned the attempted sale of Horizon Towers in 2009, highlighting that committee members owe fiduciary duties to subsidiary proprietors. This includes avoiding conflicts of interest and disclosing material information. More recent cases have also helped refine issues such as contractual flexibility in collective sale agreements and incentive payments, indicating that the courts are paying close attention to ensure decisions are made fairly and in line with the law. Ho urges all parties to be transparent and work together in good faith.

Eugene Lim, founder and CEO of The Assembly Place (TAP), also spoke at the conference, sharing how his company has evolved with Singapore’s co-living market. TAP now manages over 4,000 rooms across 145 locations in Singapore, a considerable increase from only six rooms in 2019. Lim notes that most of the properties they manage are ageing assets that have been repositioned into high-yield, capital-appreciating properties. TAP also works with the Ministry of Health to provide accommodation for foreign healthcare workers. Lim plans to expand TAP’s hospitality offerings, with upcoming projects including a renovated Serene Centre, a new serviced apartment at 400 River Valley Road, and a capsule hotel called Gather House at 63/65 South Bridge Road, set to launch in November.