Written Answer by Ministry of National Development on whether the Ministry has conducted any studies on the environmental impact of private en-bloc sales

Jul 26, 2021

Mr Gerald Giam Yean Song: To ask the Minister for National Development (a) whether the Ministry has conducted any studies on the environmental impact of private en-bloc sales; (b) whether the Ministry has conducted any studies on the price impact of en-bloc sales; (c) if so, what are the results of such studies; and (d) whether the Ministry will introduce legislation limiting en-bloc sales of newer developments in order to prevent unnecessary environmental damage and rises in housing prices.

Answer: 

Under the Land Titles (Strata) Act, buildings that are 10 years in age or more are required to obtain consent from 80% of owners before the collective sale can proceed. For buildings less than 10 years in age, consent is required from 90% of owners, so the threshold is higher for newer developments. 

Even if the required consent threshold is reached, the eventual outcome of the en-bloc sale is dependent on many factors, including prevailing market conditions, developers’ demand for land, and sellers’ price expectations. As with any other land sale site, the impact of en-bloc sales on property prices is also contingent on different factors, including the attributes of the site as well as market conditions. For example, the increase in dwelling units due to the intensification of an en-bloc sale site could help to meet housing demand in a particular area, and may hence help to moderate property prices. 

Let me now move on to the environmental impact. Every development proposal goes through a robust planning evaluation process which assesses not only its potential environmental impact, but also other aspects such as traffic, public health, and heritage. As part of this process, technical agencies may require more detailed studies to be conducted, before planning approval is given. 

To minimise the environmental impact when buildings are demolished and rebuilt, we also promote the adoption of sustainable construction practices. For example, BCA’s Code of Practice for Demolition provides guidelines for improving the recovery of waste from demolition. In 2020, over 99% of debris from demolition was recycled for further use in the Built Environment sector. BCA’s Green Mark scheme also awards points to developments that make use of resource-efficient building designs and conserve existing buildings on-site. This approach allows us to undertake development in an environmentally responsible manner, while meeting the housing needs of Singaporeans.