| Summary: | The sale of property En Bloc for redevelopment purposes has been a phenomenon in the Singapore real estate market over the past few years. Due to the scarcity of land in Singapore, properties, which were previously under-utilized, were translated into highly prized assets. Individual property owners are unlikely to reap the full benefits of an increase in plot ratio unless owners on the same estate come together with an agreement to sell their properties through En Bloc.
There are various ways of distributing the proceeds of collective En Bloc sales. Depending on the composition of the development, finding the ‘right method’ that is acceptable to most owners is crucial. This prompted the study of “The Apportionment Methods of En Bloc sales”.
Disputes may arise during the negotiation stage, when some owners demand higher apportionment of the sales proceeds because they have carried out renovations to their units, or their units enjoy better view and frontage.
Undoubtedly, collective En Bloc sale will definitely not satisfy every owner needs. Investigating methods of apportionment that are ‘optimal’ to most owners poses certain challenges to the real estates agents.
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