Sisv Congress Spotlights Collective Sale Hurdles And Co Living Growth Singapore
Norman Ho, a senior partner at Rajah & Tann Singapore, has noted that the high replacement costs for housing and the steep additional buyer’s stamp duty (ABSD) rate imposed on foreign owners have made it difficult for collective sales committees of ageing properties to convince owners to attempt a collective sale. This has resulted in a decline of enthusiasm among developers for residential collective sales, as they now incur a 40% ABSD on land purchased for residential redevelopment.
Ho also highlighted that most successful collective sale deals in the past two years have involved non-residential or mixed-use developments. He believes that there needs to be a more balanced approach towards residential collective sales, one that promotes urban redevelopment but also protects the rights of individual owners.
He further emphasized that the court decisions related to collective sales have played a crucial role in shaping Singapore’s collective sale framework. These decisions have clarified the responsibilities of sale committees and the expected standards of fairness in the process. For instance, the Court of Appeal overturned the attempted sale of Horizon Towers in 2009 due to improper handling of the sales process, highlighting the fiduciary duties owed by members of the collective sale committee to subsidiary proprietors.
Ho also mentioned that the court has addressed other issues such as contractual flexibility, method of apportionment, and incentive payments in subsequent cases. He stressed the importance of transparency and working together in good faith among all parties involved in the collective sale process.
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At the 32nd Pan Pacific Congress, organized by the Singapore Institute of Surveyors and Valuers (SISV), Eugene Lim, founder and CEO of The Assembly Place (TAP) shared how his company has evolved alongside Singapore’s maturing co-living market. Today, TAP manages over 4,000 rooms across 145 locations in Singapore, with an average occupancy rate of 95%.
The company has repositioned many ageing assets, such as shophouses and older apartment buildings, into high-yield and capital-appreciating properties. TAP also manages a range of lodging brands, including traditional co-living, student accommodation, homestay, and intergenerational co-living for youths and seniors. They also work with the Ministry of Health to provide accommodation for foreign healthcare workers.
Lim also announced upcoming projects, including the renovated Serene Centre, a new serviced apartment at River Valley Road, and a brand-new capsule hotel concept called Gather House at Boat Quay. He emphasized their focus on F&B and co-working spaces, as well as their plans for expansion.
