Old condos at a crossroads: Rebuild, upgrade or conserve?

Owners are split: Some want renewal via sale en bloc; others want to stay and pay for upgrade

- Joyce Lim

On Sept 9, Loyang Valley's third collective sale attempt closed with expressions of interest, but no firm bids.

For Mr Jaya, who has lived there since day one, it means the 40-year-old estate may need to rethink maintenance fees if ongoing negotiations fall through.

The ageing swimming pool, landscaping, roofing and piping all need refurbishment, and with fees held flat for two years during the sale push, Mr Jaya told The Straits Times he expects an increase to be announced in the next annual general meeting.

The 78-year-old has no plans to sell his home in Changi, and is prepared to pay higher costs.

Loyang Valley's experience reflects a broader reality as more private non-landed residential apartments built in the 1970s and 1980s cross the 40-year mark.

Some of these developments are increasingly struggling with deteriorating infrastructure, insufficient sinking funds and resistance by owners to pay special levies to solve these problems.

In some estates, owners are split. One camp pushes for renewal via a sale en bloc and redevelopment, while others prefer to remain and fund refurbishment through higher fees and special levies.

But not every estate will see an offer en bloc. Analysts noted that developers have recently shown stronger interest in Government Land Sales (GLS) tenders, which can reduce appetite for complex private-treaty sites.

GLS plots are typically in locations with good infrastructure, such as being near MRT stations and amenities, said Mr Eugene Lim, key executive officer at ERA Singapore. He added that the open-tender process is also more straightforward and faster than a collective sale, which can be prolonged by objections filed with the Strata Titles Board.