Developers that may be sitting on pot of "collective" gold

By The Folks @PropTalk - April 29, 2010 No Comments
Sites acquired during the previous en bloc boom in 2006-2007 and currently held by developers will become more precious, if the proposed rule changes on collective sales make it tougher for prime freehold residential sites to make their way to the market.

Developers will also want to time their launch more judiciously if it gets tougher to replenish land-bank in this segment through en bloc sales.

Below is a list of such “prized possessions” complied by CBRE Research and published in BT today.

On Monday, the Ministry of Law released proposed amendments that will among other things make it harder to restart a collective sale within two years of a failed attempt. Any attempt to convene EGMs to appoint a sales committee during this period will require higher requisition levels from owners – 50% by share value or total number of owners for the first re-try and 80% for any subsequent attempts. Currently, requisitions for EGMs only require 20% by share value or 25% of total number of owners.

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