Property rights: achieving a fine balance in collective sales of strata developments in Singapore

Abstract

Purpose

In the light of the property relativist theory, the purpose of this paper is to review the impact of radical amendments to strata legislation in Singapore in 1999 which, together with changes to the planning framework, stimulated private‐sector led redevelopment in Singapore. This was achieved through the introduction of majority rule (rather than unanimity) in collective sales (CS) of strata developments. The paper also addresses the issue of how a balance can be achieved between the property rights of majority and minority strata owners.

Design/methodology/approach

The paper uses case‐studies, planning provisions, and data on property transactions to analyse the effectiveness of the measures taken to address Singapore's land‐scarcity problem. Legal terms and their significance are addressed in a manner that will also be comprehensible to a non‐legally trained readership.

Findings

The cases demonstrate attempts by the authorities to clarify, and to provide a better balance to, the position of those whose property rights had been sacrificed at the altar of redevelopment and urban rejuvenation in Singapore. Nevertheless, there still remain numerous pockets of resistance to CS. These still need to be addressed to reassure the minority in the context of the property relativist theory.

Research limitations/implications

The continued groundswell of protests against collective sale means that there are further issues that need to be addressed to mitigate the plight of the minority. The response of parliament has been reactive, but it remains to be seen whether the minority's concerns have been adequately addressed.

Originality/value

The analysis of the cases, whose decisions turned on the authorities' interpretation of the controversial legislation, is instructive. These can provide valuable pointers for policy makers in other jurisdictions contemplating urban rejuvenation. The twin issues that are dealt with relate to how private‐sector redevelopment can be incentivised through planning measures, without riding roughshod over individuals' private property rights.

Citation

Christudason, A. (2009), "Property rights: achieving a fine balance in collective sales of strata developments in Singapore", International Journal of Law in the Built Environment, Vol. 1 No. 1, pp. 26-41. https://doi.org/10.1108/17561450910950232