Shortened En Bloc Signature Period Worries Large Projects as Laguna Park and International Plaza Eye Fresh Attempts

Laguna Park, a 99-year leasehold former HUDC estate in Marine Parade with 528 residential and commercial units, has attempted collective sale five times without ever reaching the 80 per cent consent threshold. Its fifth attempt carried a reserve price of S$1.48 billion, but only 49 per cent of owners had signed by the August 16 deadline.

Sale committee spokesperson Rita Waswani told Lianhe Zaobao that after the current round ends, the committee will hold meetings to discuss a fresh attempt under the new rules. However, she warned that collecting 70 per cent of signatures within six months is nearly impossible for a project of this scale.

“Our project has 528 residential and commercial units. Some owners live overseas or in other parts of Singapore without providing updated contact information, making it difficult to reach them. Some registered owners may have passed away, while others simply do not wish to sell,” she said. Waswani urged the government to extend the signing deadline for larger projects.

International Plaza, a mixed-use development built in the 1970s with 962 retail, office, and residential units, held a general meeting last week to vote on restarting its collective sale process and elected new sale committee members. Its last attempt in 2021 had a reserve price of S$2.7 billion.

A sale committee member noted that even in the previous round, owners only reached the 80 per cent threshold by joining the signing process near the very end. With corporate and overseas owners, the six-month timeline poses a significant challenge.

“Many of our owners are listed companies or foreign enterprises. Listed companies need shareholder approval, and foreign real estate companies need head office sign-off. This simply cannot be completed within half a year,” the member said.

Industry participants have suggested that the government set different signing deadlines based on project size. One proposal recommends six months for projects with 250 units or fewer, eight months for those with 250 to 500 units, and a full year for projects exceeding 500 units.

Jeremy Lake of Savills Singapore said the new rules have drawn positive reactions from owners of previously failed collective sale projects. However, he noted that some owners remain reluctant to join because of the additional buyer costs they would face, particularly for projects with many units and foreign owners.

ERA Property Network observed that while the new rules are helpful, collective sale projects still face challenges. If reserve prices are set competitively based on market conditions, this could improve the chances of attracting developer interest.