Category Archives: Developers

New rules to protect home buyers

Posted on 20 May 2015 | Comments Off on New rules to protect home buyers

Prospective buyers of private homes can look forward to a more transparent property market when changes to the Housing Developers (Control and Licensing Act) kicks in from 25 May 2015, revealed the Ministry of National Development (MND).

The new rules for residential developers will ensure more comprehensive information on prospective property purchases while showflats must accurately depict the housing units offered for sale.

Here is the full statement from MND:

In April 2013, Parliament approved amendments to the Housing Developers (Control and Licensing) Act to improve and update legislative safeguards for buyers of uncompleted private residential properties. The amendments will enhance market transparency by providing the public with more comprehensive and timelier information on the private residential property market.

Since then, MND has worked on the subsidiary legislation, the Housing Developers Rules, to effect these policy changes. The effort includes the implementation of a new set of rules on show units, the Housing Developers (Show Unit) Rules.

The legislative amendments, which were finalised through a series of consultations with members of the public and industry stakeholders, are now ready to take effect. The amendments will enable prospective home buyers to make better-informed purchasing decisions.

Weekly collection and publication of transaction data

From 25 May 2015, housing developers must submit detailed transaction information to the Controller of Housing every week. This information will include sales volumes and transacted prices of individual units in their building projects, and the value of any benefits extended to buyers.

Developers will be required to submit this information to the Controller within five days of the end of each preceding week. This information will be published on the Urban Redevelopment Authority (URA) website weekly from 5 June 2015.

More comprehensive information in transaction documents

The Option to Purchase and Sale & Purchase Agreement, which are standard forms prescribed under the Housing Developers Rules, will also be amended  to enhance the safeguards for purchasers of private residential properties. For example, developers must indicate the value of any benefits (such as cash rebates, absorption of legal fees or stamp fees, rental guarantees and furniture vouchers) offered to buyers.

The amendments to both forms will take effect on 20 July 2015. This is to provide developers sufficient time to comply with the amendments.

Ensuring the accuracy of show units

MND is introducing the Housing Developers (Show Unit) Rules to ensure that all show units provided by developers are accurate depictions of housing units offered for sale.

For example, one rule requires the floor area of the show unit to be the same as that of the actual housing unit. Another rule requires all external and structural walls to be built in the actual unit to be depicted in the show unit.

These Rules will take effect on 20 July 2015 to provide developers sufficient time to comply with the new requirements. For more information, go to: http://bit.ly/1Hr1g73

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Pressure mounts as developers compete with home sellers

Posted on 16 May 2015 | Comments Off on Pressure mounts as developers compete with home sellers

Singapore’s sluggish property market has resulted in developers competing with home sellers, with resale transactions accounting for 45.5 percent of total private home sales, media reports said.

In fact, resale transactions increased further to 47.1 percent in Q1 2015 under the new data collection method, as home builders put off launching new projects amid slowing demand.

Moreover, as the stock of completed private homes is expected to rise seven percent this year alone, developers are being forced to cut prices to move units.

Data from the Urban Redevelopment Authority (URA) shows that Hock Lian Seng still has 189 unsold units at its jointly developed 420-unit The Skywoods condominium, with discounts offered for some units.

“Three or four years ago, everything could just sell by itself, but right now it’s very different,” said property agent Jayson Yap.

“We need to create something more appealing,” added Yap, who advises some of his resale clients to rent furniture and décor in order to make their homes more appealing to buyers.

Private home prices slipped one percent in Q1 2015, or its sixth consecutive quarter of decline, with the luxury market hardest hit.

Property watchers warn that the mid- to low-end market may be the next segment to feel the pinch.

In its update, Maybank Kim Eng said smaller companies like Roxy-Pacific Holdings and Hock Lian Seng Holdings have the biggest exposure to the mass market segment, wherein a mounting inventory of unsold units will place pressure on prices.

“Mass market prices have not come down much yet. It has to come down,” said Maybank analyst Derrick Heng.

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