EN-BLOC SALES IN PRIVATE CONDOMINIUMS

Mr Lew Syn Pau asked the Minister for Law whether he will consider making it easier for en-bloc sales in private condominiums to be effected.

The Minister of State for Law (Assoc. Prof. Ho Peng Kee) (for the Minister for Law): Sir, the current requirement is for all the owners to agree before an en-bloc sale can take place. We have received appeals from frustrated owners whose efforts at selling their flats or condominiums en-bloc have been thwarted by a very small minority. In these cases, the vast majority are unable to proceed to sell their residential developments at a premium, in order to maximise their development potential. There is also a public interest because rejuvenation of estates, through en-bloc sales of older developments, cannot be realised. Government recognises that there is a problem.

As a basic principle, the Government has never allowed development in the overwhelming interests of the majority to be held up by a minority. Compulsory land acquisition to facilitate comprehensive development is an example. It defeats national objectives if changes in Development Guide Plans cannot be translated into better utilisation of scarce land resources in those cases because disagreements have held up or prevented en-bloc sales.

We will therefore amend the law to make it easier for en-bloc sales to be effected by removing the requirement to obtain the agreement of 100% of owners. However, we will ensure that there are appropriate safeguards to protect minority owners, such as ensuring that the purchase price is fair.

Such a practice will not be peculiar to Singapore. In some Canadian states and Hawaii, owners' unanimous agreement is not required to terminate a strata-titled development. In those states, land is abundant. In land-scarce Singapore, such a change is even more imperative, as it will release more prime land for higher-intensity developments to provide more quality housing for Singaporeans.

Mr Chiam See Tong: Sir, if the Government is going to amend the law to allow the majority to have their way in en-bloc development, how many per cent of the residents must give consent before this en-bloc development is allowed?

Assoc. Prof. Ho Peng Kee: Sir, we are still looking at the figures. Currently, it is 100%. We have examples from other countries. In the examples that I stated, in Ontario and British Columbia in Canada and Hawaii, it ranges from 75-80%, but that is only a guide. We are still looking at the figures to see what percentage will be appropriate to balance the interest of both the majority owners and the minority owners.

Mr Lew Syn Pau (Kreta-Ayer Tanglin): Sir, when will the new laws come into effect?

Assoc. Prof. Ho Peng Kee: Sir, we will need to amend the Land Titles Strata Act. We hope to finalise our position by the end of this year.

Mr Chiam See Tong: Sir, I know of certain cases of residents who oppose en-bloc development. It is not because they do not want the place to be improved, but there are cases of persons who are widows and who are living alone with no relatives. In such cases, it is difficult for them to move out. The Minister spoke about safeguards. Will such persons be taken care of?

Assoc. Prof. Ho Peng Kee: Where the minority owners are concerned, we are providing for appeals to, possibly, a board. But because there are so many other factors that may be involved if we go away from what is a "fair price", I think it will be difficult for the board to decide other than that the price is a fair price. I think if Mr Chiam knows the situation, when this arises, it is very often a matter of the majority talking to the minority, and sometimes even talking to the developers, so that the person who does not want to move out, he or she strikes a deal with the developer who is developing the land so that that person will have a first right of refusal for a new unit in the block. 1.30 pm

Mr Speaker: Order. It is 1.30 pm. End of Question Time.

[Pursuant to Standing Order No. 21(3), Written Answers to Question Nos. 17-21, 23-25, 27-31, 34-35, 37-38, 40-41, 43-46, 48, 50, 52, 54 and 56-57 are produced in the section, "Oral Answers to Questions Not Reached" (Cols. 1875-904). Question Nos. 15-16, 20, 22, 26, 32-33, 36, 39, 42,47, 49, 51, 53 and 55 have been postponed to the next sitting of Parliament.]