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Legal framework for collective sale of real estate in Singapore: Pot of gold for investors?

Alice Christudason (National University of Singapore, School of Design and Environment, Singapore)

Journal of Property Investment & Finance

ISSN: 1463-578X

Article publication date: 9 March 2010

1023

Abstract

Purpose

The purpose of this paper is to provide an analysis of the profile and differing perspectives of strata owners (subsidiary proprietors) involved in collective sales in Singapore. It aims to examine their position within Singapore's legal framework, and consider the repercussions of the power‐play between them.

Design/methodology/approach

The paper utilises legislation and case‐law to reveal the problematic aspects of the collective sale process through majority rule. Similar legislation exists in Hong Kong, South Korea and Taipei. Data on collective sales from real estate information systems and property analysts are also utilised.

Findings

The findings reveal the dichotomy of concerns between different groups of subsidiary proprietors, namely the owner‐occupiers and property investors. This causes delay and acrimony which characterise many collective sale exercises. This is fuelled by a lack of differentiation in the voting rights of the different groups of subsidiary proprietors. However, Parliament and the Courts have been dynamic and sensitive in seeking to strike a balance between the legitimate concerns of both groups.

Originality/value

The findings assist both groups of subsidiary proprietors to be more alert about the pitfalls and profits in a collective sale. Policy makers in other jurisdictions can learn from Singapore's experience of the collectives sale phenomenon as an avenue for urban renewal. It provides insights to the multiple issues which arise when majority rule can dictate the trajectory of collective sales.

Keywords

Citation

Christudason, A. (2010), "Legal framework for collective sale of real estate in Singapore: Pot of gold for investors?", Journal of Property Investment & Finance, Vol. 28 No. 2, pp. 109-122. https://doi.org/10.1108/14635781011024854

Publisher

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Emerald Group Publishing Limited

Copyright © 2010, Emerald Group Publishing Limited

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