The Difference Between En Bloc and SERS

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January 24, 2022

The Difference Between En Bloc and SERS

 By PropNex Research and editorial

We have often read in the news that a particular development has been put up for collective sale. Headlines like “Normanton Park sold en bloc for $830.1 million” or “Three blocks in MacPherson Lane get nod for SERS”, but what is an en bloc sale? How does it differ from the Selective En Bloc Scheme or SERS for HDB estates?

To put it simply, both types of en bloc sale- also known as collective sale - and SERS are ways to “recycle” land and rejuvenate an estate. It usually involves an older development making way for a new project, with intensification of land use subject to plot ratio and land use permissible. For example, the former 560-unit Tampines Court were collectively sold for $970 million in August 2017, and is being re-developed into Treasure At Tampines with a whopping 2,203 units.

Why go for collective sale or SERS?

A collective sale refers to the sale of two or more property units to a common purchaser. Owners of private residential developments can put their property up for collective sale if they garner majority consent for the move. Some of the main motivation for launching a collective sale include addressing the issue of declining lease (in the case of 99-year leasehold properties), costly maintenance of ageing buildings, deterioration of building condition over time, and the opportunity to maximise profit on the sale of the unit.

Whereas in SERS - generally known as the HDB equivalent of the en bloc process - HDB owners do not get to choose when or if their estate gets selected for the scheme. In fact, only 4% of HDB flats have been identified for SERS since it was launched in 1995.