The Strategic Advantage: Why Owning a Condo Near HDB Flats Can Be Your Best Property Move
TLDR Owning a condo near HDB flats in Singapore offers a strategic advantage often overlooked by buyers. Proximity to HDB...
Read More
Why Older Freehold Condominiums Are Losing Their Edge in En‑Bloc Deals (2025)
TLDR
Older freehold condominiums in Singapore are losing their edge in en‑bloc deals due to several structural shifts. Developers increasingly prefer Government Land Sales (GLS) sites, which offer certainty, lower costs, and faster timelines compared to the complexities of collective sales. Rising replacement-home prices push owners to demand higher payouts, widening the gap between seller expectations and developer bids. Post‑COVID demand for larger resale units has further strengthened owners’ resolve, while harmonisation of Gross Floor Area (GFA) rules has reduced saleable space, lowering developer margins. Freehold tenure, once a strong selling point, now matters less than affordability, layout efficiency, and amenities, making 99‑year projects equally attractive. As a result, large freehold estates face stalled negotiations, while smaller boutique freehold sites remain viable. For many owners, private resale may be more realistic than waiting for en‑bloc success.
“It wasn’t supposed to turn out like this.”
That’s a line I’ve heard repeatedly in 2025, and given how commentators talked before COVID, I can see why. Freehold developments were thought to have an advantage in collective sales: buyers don’t have to factor in topping up a lease to 99 years, and owners aren’t pushed by an imminent lease expiry to accept a low offer. That perceived benefit helped justify the freehold premium for many purchasers.
Yet by October 2025 a clear pattern has emerged: many older, larger freehold estates are struggling to get over the line on en‑bloc attempts. Here’s what’s driving that shift.
More Government Land Sales (GLS) and a developer preference for smaller sites Developers are increasingly favouring GLS plots and compact sites, which has weakened the case for large freehold en‑blocs. The government boosted GLS supply through 2024–2025: by the second half of 2025 the Confirmed List alone accounted for roughly 4,725 private housing units, and the total annual pipeline surpassed about 9,200 units when Reserve List sites were included — higher than 2024’s elevated level.
GLS tenders appeal because they offer defined planning parameters, transparent bidding and a predictable timeline (roughly a 15‑month pathway to launch). That certainty is a powerful contrast to the time, cost and uncertainty of getting 80% owner consent for a collective sale. When GLS options exist, many big developers will prioritise them rather than get tied up in protracted en‑bloc campaigns.
There’s an important caveat: small, boutique freehold sites — typically with double‑digit unit counts — still attract buyers, often smaller developers that lack the balance sheet to contest GLS tenders. Examples like River Valley Apartments (48 units sold for $56 million) show compact freehold parcels can still transact. Large freehold estates with many owners, high reserve prices and complex negotiations, however, are much harder to move.
Developers also face opportunity cost. Committing to an en‑bloc can mean missing out if a prime GLS plot is released nearby. On pricing, anecdotal figures in 2024–2025 placed GLS land bids roughly around $1,223–$1,318 psf plot ratio, while some en‑bloc sites pushed higher (Pine Grove cited near $1,335 psf). With higher interest rates and construction costs in 2025, the cheaper — and clearer — GLS route often makes more economic sense.
Owners aren’t simply “greedy” — replacement costs explain a lot A key driver of owners’ high expectations is the rising cost of replacement housing. Take District 9 as an illustration: in 2024 new freehold or 999‑year three‑bedroom units averaged about $4.68 million, while resale freehold three‑bedroom units averaged roughly $3.33 million — a premium of about 40.6% for newer product.
For an owner in an ageing D9 block, cashing out today means their nearest like‑for‑like replacement could cost over 40% more. Asking for higher proceeds is therefore a rational reaction to that replacement gap, not simple avarice. Unless replacement-home prices fall significantly, this gap will keep influencing negotiations.
A minority of owners may be foreign buyers who purchased before the current Additional Buyer’s Stamp Duty (ABSD) framework. For these owners, selling and buying again could incur a heavy ABSD (up to 60% in some cases), so they are likely to resist collective sales even if they are not the majority.
Recent resale transactions give owners confidence to hold out Post‑COVID demand for larger homes — driven by hybrid work, home offices and multi‑generational living — has lifted resale prices for bigger units. Buyers who want space often turn to the resale market because many new launches offer smaller layouts.
Pandan Valley demonstrates this dynamic: average prices moved from about $1,113 psf in 2020 to around $1,572 psf by September 2025. When comparable resale transactions command those levels, owners expect developers to match or beat them. But developers have redevelopment thresholds they cannot exceed and must account for costs and margin. This mismatch means many collective sale negotiations stall: owners benchmark against strong resale comparables while developers stick to what the site economics will allow.
GFA harmonisation has reduced saleable floor area and developer bids The Urban Redevelopment Authority’s harmonisation of Gross Floor Area (GFA) rules, implemented from 2023, removed many of the previous “bonus” spaces developers could count separately from chargeable GFA — items such as air‑con ledges, planter boxes, large voids and some bay windows. Now only liveable, chargeable areas count. Market feedback suggests removing those elements reduces saleable area by roughly 6% in some older projects — a meaningful loss when multiplied across hundreds of units.
For developers, a smaller monetisable floor area lowers the amount they can extract from a site, which in turn reduces the top bid they are prepared to make. For owners, that means the en‑bloc premium they expect is narrower. Many older freehold estates relied on those bonus areas to underpin their earlier pricing, so harmonised GFA has widened the gap between owners’ expectations (based on old measurements) and today’s realistic developer bids. That gap creates tougher, longer negotiations inside the condo and forces pro‑sale committees to justify lower reserve figures.
Freehold status matters less to buyers and developers than it once did Freehold used to be a major marketing point in Singapore. In theory, a freehold site should be more attractive because there’s no lease top‑up cost. In practice in 2025, tenure matters far less than price quantum, unit layout and amenities.
Many successful launches in 2024–2025 — for example River Green, Promenade Peak and Emerald of Katong — sit on 99‑year land and have sold well despite freehold neighbours. For buyers focused on affordability and liveability, a 99‑year tenure is no longer a deal‑breaker. Developers therefore prioritise sites that deliver acceptable margins after factoring in GFA limits, construction and marketing costs, regardless of tenure. A freehold parcel with a low plot ratio, tight setback rules or conservation constraints can be less appealing than a 99‑year site with better development potential.
What this means for owners and the market The current en‑bloc environment for older freehold condos is one of caution. Rising replacement costs, growing GLS supply, shifting buyer preferences and tighter GFA rules have combined to make large freehold collective sales harder to pull off. Owners hoping to cash out via en‑bloc face tougher bargaining, and many will find a private sale with an agent the more realistic route.
That said, some owners benefit from the shift: foreign owners who would face high ABSD if they replaced their homes, and residents who simply prefer to stay put, may welcome the reduced en‑bloc pressure.
If you want a deeper analysis of a specific freehold project or help assessing en‑bloc prospects, say which development and I’ll run through the factors that matter most.
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 …
What is Buyer’s Stamp Duty (BSD) in Singapore and How Does It Work?
TLDR When it comes to navigating the Additional Buyers Stamp Duty (ABSD) in Singapore, legal strategies are available to overcome...
Read More
Top 5 Dim Sum Restaurants in Singapore
Dim sum, a popular culinary delight that originated from China, has made its way into the hearts and taste buds...
Read More
Will New Launch Condos See a Drop in Prices Soon?
TLDR The real estate market in Singapore is experiencing a trend of lackluster bids for prime properties in various locations....
Read More
5 Factors : Why Singapore’s Property Market Is A Good Hedge Against Inflation
As inflation becomes a growing concern for investors worldwide, the stability of Singapore's property market has become an attractive option...
Read More
Top 5 Factors : Investing In Luxury Singapore Properties: Is It Worth It?
Investing in luxury properties has always been an attractive option for high-net-worth individuals seeking to diversify their investment portfolios. Singapore,...
Read More
Ouch! How Owning a Million-Dollar Home Can Sting with a Whopping $300K Interest in Just a Decade!
TLDR When considering property investments in Singapore, it's crucial to monitor home loan interest rates closely. Even a slight increase...
Read More
5 Reasons Why Singapore Loves Investing in Properties
Property investing is a popular and lucrative option in Singapore due to several reasons. Firstly, Singapore's stable and growing economy...
Read More
HDB Market Outlook 2023
TLDR: Understanding the HDB Market Outlook 2023 The HDB resale market showed resilience in 2022, with significant growth in sales...
Read More
Can Your HDB Flat Safeguard Your Retirement?
TLDR The HDB market has seen significant changes over the years, with many young owners looking to upgrade to private...
Read More
5 Impacts Of The Singapore-Malaysia High-Speed Rail On The Property Market
The proposed Singapore-Malaysia High-Speed Rail (HSR) is a joint project between the two countries that aims to improve connectivity and...
Read More
My 6 Factors to Consider When Buying a Property in 2023
As the housing market shows no signs of slowing down, many of us may feel left behind, questioning whether it...
Read More
3 Trends For New Launch Properties In 2023
TLDR When considering buying or selling a property in Singapore, it's crucial to understand the market dynamics and key metrics....
Read More
Is the Dream of Homeownership Becoming a Steeper Climb?
TLDR The article discusses the evolving trends in the Singaporean real estate market, focusing on the affordability and accessibility of...
Read More
Top 5 Coffee Shops in Singapore for Coffee Lovers
Singapore, a bustling city-state known for its diverse culture and vibrant food scene, has also become a haven for coffee...
Read More
Experience Singapore’s Best: 5 Districts with Unmatched Access to Shopping, Dining, and Entertainment
Here are my top 5 picks for districts in Singapore that offer easy access to some of the best shopping...
Read More
Should You Buy An Older Resale HDB Flat If You Are In Your 20s/30s?
TLDR Younger Singaporeans are increasingly drawn to older resale HDB flats due to their larger size and central locations, without...
Read More
Powering The Lion City: The Top 5 Industries Driving Singapore’s Economy
Powering The Lion City: The Top 5 Industries Driving Singapore's Economy Singapore is widely recognized as one of the most...
Read More
Beyond the Premium: Why Some Singaporean Homebuyers Steer Clear of Top-Floor Properties
TLDR Top-floor condominium units in Singapore often come at a premium price and are associated with luxury, but they have...
Read More
How to Avoid Forfeiting Your Security Deposit: A Guide to Your Rental Property
TLDR When bidding farewell to your rented property, ensure the safe return of your security deposit by: Regular Aircon Servicing:...
Read More