The recent $950 million collective sale of the freehold Tan Boon Liat building in Outram marks one of the most significant transactions in Singapore’s en bloc market, reflecting a cautious recovery amid ongoing challenges. This deal, completed in 2026, follows two other major en bloc sales: the $880 million Loyang Valley condominium in Changi in April and the $810 million Thomson View sale in 2025. Together, these transactions highlight a selective revival, although the broader market remains subdued with only three collective sales recorded this year.

Industry analysts attribute the success of these large-scale transactions to their “exceptional scale, strong locational fundamentals, and meaningful repricing of reserve prices.” Notably, all three deals finalized at figures below their initial reserve prices, indicating greater realism among sellers about current market conditions. This trend also emerged in recent renewed sales attempts at Pine Grove in Ulu Pandan and People’s Park Centre, where sellers have lowered reserve prices following previous unsuccessful bids.

Market experts say sellers are increasingly aware that they face competition not only from other collective sale sites but also from the Government Land Sales (GLS) program, which offers fresh sites for tender almost every month. Additionally, rising maintenance costs and the narrowing lease tenure of aging buildings put pressure on sellers to moderate expectations. Nicholas Ng, head of land and collective sales at JLL Singapore, emphasized that owners who have endured multiple failed attempts are adjusting their pricing based on realistic buyer demand rather than optimistic valuations.

The distinction between freehold and leasehold sites also plays a critical role. Leasehold property owners must consider the added expense developers incur to upgrade leases to fresh 99-year tenures, which diminishes site appeal if prices remain inflexible. For developers, the challenge lies in balancing rising construction costs, land betterment charges, development risks, and regulatory constraints with market demand when pricing new projects. Consequently, acquiring land through the GLS program remains a more straightforward and often preferred landbanking strategy.

The Tan Boon Liat site’s redevelopment potential was significantly enhanced by a rezoning decision from the Urban Redevelopment Authority (URA), which shifted the land from Business 1 zoning to residential with commercial use on the first storey. The plot ratio was also raised substantially from 3.1 to 4.9, boosting the site’s value without triggering additional buyer’s stamp duty (ABSD), a notable advantage since residential land acquisitions incur a 40 percent ABSD.

However, experts warn that similar successes may be difficult to replicate. Sites like People’s Park Centre and International Plaza face more complex challenges due to leasehold statuses, top-up premiums, and intricate mixed-use redevelopment requirements. International Plaza, a 50-storey mixed-use development in Tanjong Pagar, ended its first en bloc attempt in late 2021 without bids. The owners plan to form a new collective sale committee for a second bid, with expectations of a lower reserve price reflecting the building’s aging state and lease tenure reduction. Kevin Liang, former collective sale committee chair for International Plaza, remains cautiously optimistic, noting rising maintenance costs and decreasing lease terms provide greater incentive to sell.

URA rejected International Plaza’s redevelopment proposal in 2021 to build a taller mixed-use tower under the Central Business District Incentive Scheme, citing the property’s existing balanced mix of residential, retail, and office uses. URA guidelines require any future project to maintain the current residential quantum and cap office space, corresponding to a gross plot ratio of approximately 19.24, which remains substantially higher than other nearby developments such as Guoco Tower.

Beyond International Plaza, former collective sale candidates Horizon Towers in Leonia Hill and Horizon Gardens in Ang Mo Kio are restarting their sales processes after previous setbacks. The overall trajectory of the en bloc market will hinge on whether sellers and developers can continue to reconcile realistic pricing with redevelopment feasibility amid sustained cost pressures and regulatory considerations.