ST reported this afternoon that The Ministry of National Development (MND) has
announced on Monday that amendments to the Housing Developers (Control and
Licensing) Act and subsidiary legislation will be implemented from May 25,
2015. This is to improve safeguards and enable prospective private home buyers
to make better-informed purchasing decisions.
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.
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, MND said.
Below are details of the amendments and what they mean (to us anyway):
1. Weekly collection and
publication of transaction data
From May 25, 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 June
5, 2015.
(* The wife and I have failed
to find information on the old timeline for housing developers to submit
detailed transaction information, but we seem to recall that this was previously
done on a quarterly basis - we could be wrong and stand corrected by anyone who
knows definitively.
And no more keeping discounts and rebates given to buyer outside of the selling price so as to maintain an artificial perception of a higher psf! *)
2. 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
offered to buyers.
The amendments to both forms will take effect on July 20, 2015. This is to
provide developers sufficient time to comply with the amendments.
(* While this may again evolve more transparency, some buyers may feel "disadvantaged" as the quantum of housing loan that they can take will be reduced. *)
3. 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 July 20, 2015, to provide developers
sufficient time to comply with the new requirements.
(* No more
misrepresentations at showflats to give potential buyers a false sense of
space or having a piano straddling between the balcony and living room - we kid you not!
But to be fair, the wife and I have observed that developers are generally quite "disciplined" about the depiction of their showflats these days. However,
the wife and I are not entirely convinced that all current showflats have the same
exact floor area as the actual units. The new rules will make certain of that *)
Below is the MND Press Release:
Housing Developers (Show Unit)
Rules
The requirements on show units are set out in the Housing Developers (Show
Unit) Rules and include the following:
a. The floor area of the show unit must be the same as the depicted unit;
b. External and structural walls must be built, unless they need to be
removed to provide access to and from the show unit. If these walls are
removed, the position, thickness and width of the removed wall must be clearly
marked on the floor and labelled;
c. All erected walls must be of the same thickness as that shown in the
approved plans;
d. If any internal non-structural wall is not built in the show unit, the
position, thickness and width of the removed wall must be clearly marked on the
floor and labelled;
e. A drawn-to-scale floor plan of the show unit must be displayed at the
entrance to the show unit;
f. Any models of the housing project displayed must be based on the
approved plans; and
g. A list of materials, finishes, fittings and appliances which will be
provided in the actual unit must be displayed in the show unit.
Exemption
Existing show units which have been erected, set up and made available for
viewing before July 20, 2015, will be exempted from the new show unit
requirements.
However, the developer must inform purchasers of the differences between
the existing show unit and the actual unit as shown in the approved building
plan, by prominently displaying a detailed list and description of the
differences at the entrance of the show unit and giving purchasers a copy of
the detailed list and description of the differences.
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The wife and I decided to check out the footpath that provides access to King's Road, where the wet market and food centre are located. The path also leads you towards Farrer Road MRT station, which we reckon is a 5 - 10 minutes' walk away.
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