SINGAPORE : Market watchers say the slew of changes governing en bloc sales is likely to cool the en bloc market. They say the move to have two levels of consent - one based on share value and another on floor area - is in favour of those who do not wish to sell.
They also add that it puts residential owners on a more level playing field, as commercial units now have much higher share value.
It may also deter speculative investors.
Lee Liat Yeang, Lawyer, Rodyk and Davidson, said, "I think these amendments will cool the market both in the short term and the medium term. In particular, I think property consultants and lawyers will have to actually take more time to actually review the impact of the changes in the laws and procedures to see how they can actually fine-tune their actual processes that they are doing right now to make it in line with the new laws and regulations."
As for the changes governing the setting up of sales committees and their proceedings, the law ministry says this will make the process more transparent.
Analysts say this will make it more onerous.
Mr Lee said, "There's also a requirement that the lawyers be present to explain and to witness the signing of the collective sale agreement. This would also be very difficult, because it will be harder to organise signing sessions where lawyers are present. This might result in higher professional costs."
Industry watchers say developers may have more difficulty finding good en bloc acquisition deals as the new rules will mean that potential sellers will have a harder time fulfilling the 80 percent criteria for consent. - CNA/ms
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