Picture (Left) : Neptune CourtHome owners could scramble to secure the required number of signatures to seal their en bloc deals in the weeks ahead, according to industry watchers.
This is due to the impending changes to the collective sales legislation aimed at adding more transparency to the process.
Owners at Pacific Mansions are still working out a deal with some four to five potential buyers.
Pacific Mansions has 288 apartment units.
The new rules, which may kick in as early as October, will not apply to this development but its sales committee hopes business can be done by that time.
82 percent of residents have already agreed to proceed with the collective sale and the committee says all processes are in order.
If successful, each unit stands to pocket over S$3 million.
The sales committee feels the change in legislation is timely, but could affect the range of property available for en bloc sales.
Dick Tay, Chairman, Pacific Mansions Sales Committee, says: "In future, developments like this will be very difficult to go on en bloc because there are high number of owners in a big estate like this, and also, the process will mean that it will be a longer process for the sales committee to go through."
With the clock ticking down to the new rules, insiders say some owners at Neptune Court are not confident they will get their deal in time.
Currently, only around 40 per cent of residents have agreed to sell, but the sales committee is not in a rush.
Still, industry players expect some negotiations to speed up in some cases.
S K Phang, Lawyer, Phang & Co, says: "They have substantial signings already, whether it is 30, 40, 50 or 60 per cent, so they will try and race towards the 80 percentile requirement before the rules come into effect."
Nicholas Mak, Property Analyst, Knight Frank, says: "If the current sales committees in some of the en bloc sales sites...are not able to launch their collective sales tender before the deadline, they may even have to be dissolved. (Under the new rules) You have to have the Collective Sales Agreement witnessed by lawyers and consensus hurdle will be based not just on share value, but also one the floor area."
So experts hope the authorities will consider granting exemptions for cases where 40 or 50 percent of approval has been secured.
For now, many owners are waiting for the amendments to be debated in Parliament next month.
This, they say, will provide a clearer picture of the changes to the legislation and whether there are any additional rules to abide by. - CNA/ch
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