Your search results

Why En Blocs Often Fail to Succeed

Posted by Jayson Ang on April 26, 2024

| 0

TLDR

In this blog post, the focus is on the challenges and complexities of en-bloc transactions in Singapore’s property market. It highlights the emotional and financial aspects involved in such negotiations, emphasizing the need for skilled negotiators and the potential obstacles that may hinder a successful collective sale. The post also touches on the impact of various regulations and personal sentiments on property transactions. Moreover, it explores the importance of strategic real estate advice and effective communication strategies for those considering buying or selling properties in Singapore.

Singapore’s Most Talented Diplomats Are Wasted In The Property Market

When authorities need skilled negotiators, they should consider looking at the specialists in property firms who are experienced in en-bloc transactions. Successfully managing even a single en-bloc negotiation demonstrates competence in dealing with simpler matters like the construction of the High Speed Rail.

En-bloc meetings aim to achieve an outcome that benefits all parties involved. Failing to reach an agreement could leave individuals facing the daunting task of buying a condominium at current market prices. Imagine the shock of finding yourself in such a situation at the age of 82, or shortly after investing $100,000 in renovating your supposed “permanent residence” just a month before the meeting.

For those who remember, the disappointment of an unfavorable en-bloc deal can leave a lasting impact. Former residents of Gillman Heights, for example, may still feel resentment towards the collective sale that led to The Interlace.

If you expect a calm and rational discussion about sales and finances, you might be disappointed. Instead, the initial hour of the meeting could be filled with accusations of insensitivity, racism, corruption, and elitism being thrown back and forth between the parties involved.

I recently heard from someone who attended a similar event, and their experience was quite eye-opening. They had to leave after just an hour because the meeting couldn’t even get started properly. The attendees were too busy arguing about who had the right to present first. This disagreement quickly turned into a heated argument, sparked by one person raising their voice to address their colleague’s spouse.

The representative from the property agency needs to confidently handle the chaos and clearly discuss important factors such as:

How the money from the sale will be divided
The pricing strategies that developers may use
Evaluating the current market conditions
Predicting the potential benefits for sellers if the transaction is successful

Additionally, they should reassure individuals about the valid marital status of their parents, despite any emotionally charged comments made by an elderly relative.

Even If Someone Can Break Through The Noise, There Are Certain Controversial Issues That Can Lead To The Failure Of A Collective Sale, Regardless Of How Reasonable It May Seem.

The history of the condominium dates back to before the Vietnam War. However, the funds set aside for its maintenance have been greatly depleted. This may deter some people from agreeing to sell the property due to the following reasons:

Foreign owners may be hesitant to sell because they would have to pay a higher Additional Buyers Stamp Duty (ABSD) of 60 percent if their unit is involved in a collective sale. This would make buying a replacement unit more expensive.
Retirees who rely on rental income may find it difficult to purchase another rental property due to the 20 percent ABSD. This could have a negative impact on their financial situation.
New homeowners who recently purchased their residence would face a 12 percent Sellers Stamp Duty, which would increase their costs further when combined with renovation and furnishings expenses.
The Method of Apportionment, which determines each owner’s share, may discourage owners of larger units from accepting the offer due to the aforementioned reasons.
The sale proceeds are expected to arrive after around 12 months, which could be a financial burden for those who don’t have enough funds to secure a replacement property within that timeframe.
Lastly, the timing of the sale might clash with important exams for their children, such as the PSLE or O-Levels. It is advisable to delay the sale for two years to avoid putting unnecessary pressure on Singaporean parents during these stressful times.

There are people who have strong emotional connections to their homes. No amount of money, even if it’s offered by a developer can convince them to move. This was the situation with Mandarin Gardens.

These personal feelings often have a bigger impact on disrupting property sales than economic factors or financial calculations. So, potential buyers who hope for a big payout from such a sale, especially those who haven’t been through a property sale meeting before, should be prepared for a potentially long and challenging process.

Should You Buy, Sell or Wait?

If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?

It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.

I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.

I can help you by:

Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.

You May Also Like …

Mandarin Top 5

Top 5 Boutique Shopping Streets in Singapore

Jayson Ang – July 22, 2024 –

Singapore, a cosmopolitan city-state known for its vibrant culture and diverse shopping scene, offers a unique blend of modern malls...

Mandarin Top 5

Top 5 Tips : Spot These Warning Signs Before Making a Home Purchase!

Jayson Ang – November 23, 2024 –

Purchasing a home is one of the most significant financial decisions you will make in your lifetime. It's essential to...

Mandarin Top 5

5 Critical Mistakes to Avoid When Investing in Singapore Property: Insights and Advice from Experts

Jayson Ang – April 1, 2024 –

Investing in Singapore property can be a lucrative venture for investors, but it's important to avoid common mistakes that can...

Mandarin Top 5

Top 5 Best Unique Nighttime Experiences in Singapore

Jayson Ang – December 13, 2024 –

Singapore, a vibrant city-state known for its stunning skyline and diverse culture, truly comes alive at night. As the sun...

Mandarin Top 5

Top 5 Considerations : Uncover the Secrets of Buying Older Properties – What They Won’t Tell You!

Jayson Ang – November 25, 2024 –

Buying an older property can be a dream come true for many homebuyers, as these homes often come with unique...

All Opinion Selling Tips

3 Property Owners Reveal Their Major Mistakes: The Pitfalls of Ill-timed Home Sales

Jayson Ang – December 10, 2023 –

TLDR When it comes to navigating the ups and downs of the Singapore property market, timing is crucial. Three real-life...

Mandarin Top 5

Top 5 Dessert Places in Singapore

Jayson Ang – July 2, 2024 –

Singapore, a melting pot of cultures and culinary delights, is known for its mouth-watering food scene. From hawker centers to...

Mandarin Top 5

Top 5 Street Food Markets in Singapore

Jayson Ang – September 8, 2024 –

Singapore, a melting pot of diverse cultures, offers an incredible array of street food that tantalizes the taste buds of...

Mandarin Top 5

Building A World-Class Nation: Top 5 Facts About Singapore’s Developed Infrastructure

Jayson Ang – July 23, 2023 –

Building A World-Class Nation: Top 5 Facts About Singapore's Developed Infrastructure Singapore is known for its high standard of living,...

All Blog Posts Buying Tips

What to Do Before Exercising Option to Purchase?

Jayson Ang – July 19, 2023 –

TLDR Home buyers are advised to thoroughly research property values using online tools, secure an ideal home loan package early...

All Buying Tips Opinion

Larger Living Spaces: The New Demand Surge Post-Pandemic

Jayson Ang – January 13, 2025 –

TLDR We explore the significant impact of digital marketing strategies on business growth in today's competitive landscape. It highlights the...

Mandarin Top 5

Top 5 : Places to Find Unique Singaporean Souvenirs

Jayson Ang – February 27, 2025 –

Singapore, a vibrant city-state known for its multicultural heritage and modern marvels, is a treasure trove of unique souvenirs that...

All Opinion

Why Can’t Everyone Have Homes In Good Locations?

Jayson Ang – March 9, 2024 –

TLDR In a nutshell, the Singapore property market is undergoing significant changes, with the introduction of a new housing classification...

All Buying Tips Opinion

The High Price of Picking the Wrong Property in Singapore in 2025

Jayson Ang – January 9, 2025 –

The Steep Price Of Making A Mistake When Buying Property In Singapore Are you yearning for a condo, but the...

All Blog Posts Opinion

Invest During the Bearish & Exit During the Bullish

Jayson Ang – December 27, 2022 –

TLDR A comprehensive overview of the real estate market trends, emphasizing the importance of strategic property analysis and investment decisions....