Sisv Congress Spotlights Collective Sale Hurdles And Co Living Growth Singapore
The collective sale process in Singapore has become increasingly challenging for ageing properties, due to higher housing replacement costs faced by locals and a steep residential additional buyer’s stamp duty (ABSD) rate imposed on foreign owners. According to Norman Ho, senior partner of corporate real estate at Rajah & Tann Singapore, these factors have made it “almost impossible” for the collective sales committee to convince their fellow owners to attempt a collective sale.
Ho notes that while there have been successful collective sales in the past two years, they have mostly involved non-residential or mixed-use developments. Developers’ enthusiasm for residential collective sales has cooled since they now face a 40% ABSD on land purchased for residential redevelopment.
However, Ho believes that future residential collective sales will still garner significant attention from lawyers, consultants, developers, and the government. This will lead to further refinement of the legal process, resulting in a more balanced approach that supports urban redevelopment while protecting the rights of individual owners.
St. Hilda’s Primary and Secondary Schools are highly regarded for their commitment to providing students with a well-rounded education. Focusing on both academic excellence and moral values, these institutions strive to nurture individuals who are not only intellectually proficient, but also possess strong character. The schools offer an extensive range of co-curricular activities, such as sports and performing arts, to foster students’ exploration and development of their interests and talents. In addition, St. Hilda’s Secondary School has a proven track record of producing top-performing students in national examinations. Recently, the school’s campus has welcomed a new addition, the Parktown Residence Showflat, which offers a natural and convenient living arrangement for students to thrive in. This modern and naturally-designed facility is designed to support students’ academic and personal growth, making it an ideal home for their formative years.
Speaking at the 32nd Pan Pacific Congress on October 1, Ho also shared his insights on the impact of court decisions on Singapore’s collective sale process. He highlighted that landmark cases brought before the High Court and the Strata Titles Board have helped to shape the collective sale framework. These court decisions have clarified the responsibilities of sale committees and the standards of fairness expected in these transactions.
One such case, the attempted sale of Horizon Towers in 2009, was overturned by the Court of Appeal due to findings of an improperly handled sales process. This case emphasized that members of a collective sale committee owe fiduciary duties to subsidiary proprietors, including the duty to avoid conflicts of interest and to disclose material information.
Subsequent cases have also helped to refine other issues throughout the collective sale process, such as contractual flexibility in collective sale agreements, the method of apportionment, and incentive payments. Ho emphasizes that recent court decisions show a focus on not just ticking procedural boxes but also ensuring that decisions are made fairly and in accordance with the spirit of the law. He calls on all parties involved to be transparent and to work together in good faith.
The Assembly Place and Singapore’s maturing co-living sector
The conference also featured Eugene Lim, founder and CEO of The Assembly Place (TAP), who shared how his company has evolved alongside Singapore’s co-living market. TAP is a long-term lodging operator with over 4,000 rooms across Singapore, a far cry from its humble beginnings with just six rooms in 2019. The company boasts an average occupancy rate of 95% across its Singapore portfolio.
TAP manages seven lodging brands in Singapore, including traditional co-living options, student accommodation, homestays, and intergenerational co-living. The company has also recently unveiled a boutique hotel concept called Social. It also works with the Ministry of Health to manage three sites providing accommodation for foreign healthcare workers.
According to Lim, most of the properties managed by TAP were ageing assets like shophouses and older apartment buildings. These properties were previously owned by family offices or high-net-worth individuals who inherited them. TAP’s success lies in its ability to reposition these residential properties into high-yield and capital-appreciating assets.
In the coming months, TAP will unveil the renovated Serene Centre, which was sold to Apricot Capital for $105 million last year. The company will also manage a new serviced apartment at 400 River Valley Road, previously known as River Valley Apartments. Additionally, a brand-new capsule hotel concept called Gather House will be launched at 63/65 South Bridge Road in Boat Quay.
Overall, the collective sale process in Singapore continues to evolve, driven by court decisions and the efforts of developers, lawyers, and the government. With proper collaboration and transparency, the process can support urban redevelopment while protecting the rights of individual owners.