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 …

All Buying Tips Opinion Selling Tips

4 Intriguing Property Trends in Singapore for 2024

Jayson Ang – February 10, 2025 –

TLDR The dynamic shifts in Singapore's real estate market following Covid, highlighting three key trends: the surprising resilience of the...

All Buying Tips

Sell High Buy High : Will This Still Make You a Profit?

Jayson Ang – December 7, 2022 –

TL;DR Summary: Timing of Property Sale: Selling high and buying high may seem counterintuitive, but understanding market dynamics can...

All Opinion

Housing Affordability in 2023: Is Singapore Property Truly Unaffordable?

Jayson Ang – November 4, 2023 –

TLDR Singapore’s property market faces challenges with high prices, especially in private housing. While public housing remains more affordable, the...

Mandarin Top 5

Top 5 Sushi Restaurants in Singapore

Jayson Ang – May 2, 2024 –

Singapore, a melting pot of cultures and culinary delights, is known for its diverse and vibrant food scene. Among the...

Mandarin Top 5

Top 5 Instagram-Worthy Spots in Singapore

Jayson Ang – February 21, 2024 –

Singapore, a beautiful city-state known for its stunning architecture, lush greenery, and vibrant culture, is a photographer's paradise. The island...

Mandarin Top 5

5 Things to Know About Singapore’s Urban Redevelopment and Landscape Changes

Jayson Ang – March 11, 2024 –

As one of the world's most densely populated cities, Singapore has undergone significant urban redevelopment over the past few decades...

Mandarin Top 5

The 5 Hottest Neighborhoods in Singapore for Real Estate Investment

Jayson Ang – May 14, 2023 –

Hey everyone! Today I want to share with you the 5 hottest neighborhoods in Singapore for real estate investment. These...

All Buying Tips

What Role Does Property Valuation Play In The Real Estate Industry, And Why Is It Important?

Jayson Ang – June 22, 2023 –

TLDR When it comes to property valuation, understanding the process is crucial for both buyers and sellers. Property valuations can...

All Blog Posts Buying Tips

When Is The Best Time To Buy A New Launch?

Jayson Ang – January 13, 2023 –

TLDR When it comes to new property launches, timing is crucial. Early buyers often secure the best prices due to...

All Opinion Selling Tips

When will En-Bloc set to Become Reality Beyond 2023?

Jayson Ang – November 24, 2023 –

TLDR The real estate market is experiencing a lull in en-bloc activities due to various factors. Higher Additional Buyer’s Stamp...

All Blog Posts Buying Tips

Are You Worried About Overpaying On Your Property? Here’s The Secret To Finding Out Its Perfect Purchase Price!

Jayson Ang – March 14, 2023 –

TLDR Understanding property valuations and their impact on mortgage loans is crucial in the Singapore real estate market. By considering...

Mandarin Opinion Top 5

The Truth About Buying An Old Condo: Homeowners Reveal Their Top 5 Regrets

Jayson Ang – July 16, 2023 –

The Truth About Buying An Old Condo: Homeowners Reveal Their Top 5 Regrets Some homeowners may find themselves regretting certain...

All Blog Posts Buying Tips Opinion

6 Compelling Reasons Why 3-Bedroom Condos Might Shrink Further

Jayson Ang – November 15, 2024 –

TLDR Three-bedroom units in Singapore have significantly downsized from 1,700-1,800 sq. ft. in the 1980s to around 1,000 sq. ft....

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....

All Blog Posts Opinion

Are We Truly Headed For A Slowdown? How Will This Affect Property Prices?

Jayson Ang – December 9, 2022 –

TLDR The pandemic-induced recession has surprisingly boosted property prices in Singapore, defying conventional economic trends. Factors like cost-push inflation, limited...

Mandarin Top 5

Beyond Marina Bay Sands: Uncovering Singapore’s 5 Little-Known Secrets

Jayson Ang – July 29, 2023 –

Beyond Marina Bay Sands: Uncovering Singapore's 5 Little-Known Secrets Singapore is a small country with a rich history and culture....

All Buying Tips Opinion

My 6 Factors to Consider When Buying a Property in 2023

Jayson Ang – March 11, 2023 –

As the housing market shows no signs of slowing down, many of us may feel left behind, questioning whether it...

Mandarin Top 5

5 Reasons Why Districts 9 and 10 are the Next Big Thing in Singapore Real Estate

Jayson Ang – March 2, 2024 –

Singapore is renowned for its thriving real estate market, with many desirable neighborhoods and top-notch properties. However, when it comes...

All Blog Posts Buying Tips

Ready To Make The Jump From HDB To Condo? This Guide Has All The Answers!

Jayson Ang – January 5, 2023 –

TLDR When upgrading from an HDB flat to a condo, consider factors like location proximity, amenities, and regulations. Decide whether...

All Blog Posts Buying Tips

Unveiling the Secrets: How Foreigners Can Buy Property in Singapore – 6 Essential Steps to Follow

Jayson Ang – December 19, 2024 –

TLDR Foreign investors find Singapore attractive due to its stable governance and transparent business practices. Foreigners, including Permanent Residents (PRs),...