COLLECTIVE SALES

Abstract

In its effort to make the Development Plan System more forward looking, the URA has formulated Development Guide Plans (DGPs) to replace the outdated 1958 Master Plan. Some DGPs have accorded higher plot ratio and building height control in certain locations to take advantage of improved infrastructure and accessibility. This inevitably enhances the redevelopment value of the affected sites. However fragmented interests in developed land inhibits large-scale redevelopment. To capitalise on the enhanced value, owners need to merge their interests to form attractive configurations to facilitate redevelopment, resulting in the recent emergence of Collective Sales as a popular form of real estate market transaction. The study examined the reasons for the rise in Collective Sales. The main reason is attributed to favourable changes in DGPs. Other reasons are unrealised development potential, demand for and scarcity of prime sites and rise in property prices. The process of Collective Sale is examined in detail, using the Collective Sale of Miramar Mansion as a case study. This provides an understanding of the mechanism, legal arrangement and time frame for such sales. Factors contributing to the success of a Collective Sale are also identified. Apart from generating lucrative returns for the owners, Collective Sales free up precious prime freehold land for higher intensity development thus creating more living space, a factor which should be taken into consideration by planners whilst formulating future DGPs. A site survey of Tanglin Planning .Area was conducted to better understand the cumulative impact of Collective Sales on the creation of new housing units. Besides its significant impact on the economy. Collective Sales can exert an immense force on the real estate market. Government land sale agencies need to monitor these transactions carefully to prevent over-supply of land. Even though Collective Sales accelerate the realisation of DGPs. They also accentuate the early economic obsolescence of buildings, which is wasteful from the national viewpoint. On the other hand, planners could harness market forces to bring about urban renewal of dilapidated sites.