What are the risks of en bloc sales for property owners?

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En Bloc Sales Pose Risks to Minority Property Owners and Urban Diversity

En bloc sales, also known as collective sales, allow a property to be sold if a majority of owners agree, even if a minority objects. While these transactions may compensate all owners, they risk coercing minority owners into selling their property against their will, potentially turning property rights into property wrongs. This practice raises concerns about the "tyranny of the majority" and the impact on urban vitality, particularly for affordable commercial spaces.
Minority Owners Face Coercion and Loss of Property Rights

The core risk for minority property owners in an en bloc sale is the potential for their property rights to be overridden by the majority's decision. Although compensation is typically provided, the process can compel individuals to relinquish ownership of their property, irrespective of their personal wishes or circumstances. This situation highlights a critical need for legal frameworks that enable minority owners to voice their objections and offer protection against decisions that solely benefit the larger group.
Urban Renewal Trends Can Displace Small Businesses and Low-Wage Workers

The push for urban renewal, often driven by the concept of "best land use" to achieve maximum financial returns, can lead to the demolition of older buildings. Such developments, exemplified by potential en bloc sales of buildings like Wisma Central, can force existing businesses to relocate or face significantly higher operating costs. This displacement affects not only the businesses within the building but also neighboring establishments and workers who rely on the affordable services and amenities these older commercial spaces provide, such as cheap lunches and printing services.
Loss of Affordable Spaces Jeopardises Urban Diversity and Opportunity

The reduction of old, affordable buildings in city centers can have a detrimental effect on urban diversity and economic opportunity. These older structures often provide crucial, low-cost rental spaces essential for the survival and growth of small businesses and low-wage workers. As SMEs are significant employers, the absence of such affordable commercial hubs can limit their ability to operate within the city, potentially hindering innovation and impacting overall employment.
En Bloc Sales Can Lead to Homogenisation and Reduced City Vitality

A widespread adoption of en bloc sales, coupled with a relentless focus on redevelopment, risks creating a more homogenous urban landscape. This can undermine a city's stated aspirations for contrast and diversity. The vitality of a city, as suggested by urban scholars, is partly sustained by a mix of old and new buildings offering diverse uses and accommodating a range of residents and businesses. Over-reliance on en bloc sales for renewal could diminish this crucial diversity, potentially making the city less vibrant and inclusive.

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What are the risks of en bloc sales for property owners?

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