1. Developers Prefer GLS Because It’s Lower Risk

Government Land Sales are clean, straightforward, and come with far lower uncertainty. Developers do not need to negotiate with dozens of owners, resolve legal disputes, or wait months for collective sale approval.

GLS sites come ready with clear guidelines, making planning and development faster and more predictable.

2. High ABSD Makes En Bloc Redevelopment Risky

The Additional Buyer’s Stamp Duty (ABSD) puts pressure on developers to complete and sell a redevelopment within 5 years. Delays from en bloc negotiations — owner disputes, legal objections, or failed tenders — increase the risk of missing the deadline.

With GLS, developers can start planning immediately, avoiding delays that could trigger tens of millions in ABSD penalties.

3. Owners’ Price Expectations Are Too High

Many en bloc owners expect premium windfall payouts, often higher than what developers can justify. This creates a major price gap.

On the other hand, GLS land prices are competitive but more realistic, with developers able to bid confidently without emotional or inflated owner expectations.

4. High Replacement Costs Reduce Seller Interest

Even if owners get a large payout, buying a replacement home in today’s market can be extremely expensive. This discourages many from agreeing to en bloc sales.

Some owners — especially retirees — also prefer stability and find the relocation process too stressful and uncertain.

5. Construction & Financing Costs Are Rising

Higher construction expenses, labour shortages, and increased interest rates have made redevelopment projects more expensive. Developers are therefore more cautious and gravitate toward lower-risk GLS sites.

6. Policy Shifts Favour GLS and Planned Redevelopment

Singapore’s urban renewal now increasingly relies on strategic government planning rather than private collective sales. Incentives such as CBD rejuvenation schemes or targeted GLS parcels provide developers with clearer, more attractive pathways.

7. Land Betterment Charge (LBC) Trends Favour GLS

Recent adjustments to LBC rates have made GLS more favourable in some areas. En bloc projects, however, often face higher upgrading premiums or land-use charges, further reducing developer margins.

Conclusion: En Bloc Isn’t Dead — But GLS Is Dominating

En bloc sales will still happen, but they are now more selective and challenging. With abundant GLS supply, stricter regulations, and rising costs, developers are naturally shifting toward government land instead of high-risk collective sales.