Data integrity is questioned after a HDB flat rent "mistake."

Data integrity is questioned after a HDB flat rent "mistake."

Analysts say that although the outrageous transaction entry was changed to S$900 per month, the change raises questions about the data entering HDB records.

27 September 2024

CONDOsingapore.com

It turned out that the eye-catching S$8,000 monthly rental for a three-room Housing and Development Board (HDB) flat in Bukit Merah was a "mistake," and the official database now shows S$900 per month instead.

According to HDB's response to questions, "the owner clarified that a typographical error was made in the application form, listing a rental rate of S$8,000 per month for the entire flat, instead of S$900 per month for a single bedroom rental, as intended."

The unusual number was discovered in August rental data and was noted in the HDB's rental market statistics.

Earlier this week, there were enquiries about a transaction at a Taman Ho Swee apartment in Bukit Merah, which would have set a record for the highest rent for a public housing apartment.

The tenancy, which was signed at S$8,000 per month, would have nearly tripled the median monthly rent of S$2,970 for three-room apartments in the neighbourhood.

HDB's publicly accessible database of market rental rates showed that the declared rent had been updated to S$900 per month on Friday, September 27. In its statement released on Friday, the agency stated that these rates are a "reference point for homeowners and renters" and are based on rents self-declared in the rental application forms.

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Challenge to Integrity

However, some analysts have expressed concerns about the amendment's impact on the accuracy of data entered into official government databases.

Data on the rental market and the median rent for apartments in different areas with rental approvals are provided by HDB. On its website, the organisation stated that the information is provided for owners and tenants to use "as a guide before entering a tenancy agreement." The goal is for both sides to be able to make a "informed decision."

Rounded to the nearest S$10, the figures are "based on rent declared in the application forms."

Since the agreed rental is a "private matter between owners and tenants," HDB does not confirm the accuracy of the data and the figures are provided as indicative.

The HDB e-service, however, confirms that homeowners are eligible to rent before allowing the rental application to be posted on its website.

One market analyst stated that the problem is that rental caveats posted on the database may be deceptive. HDB does not need to check entries against a tenancy agreement in order for owners to upload the data themselves.

The analyst stated, "If there are no checks and balances, then many people may actually be under-declaring the real rental rates."

According to other observers, agents might also be able to persuade landlords to raise rent fees by offering proof to back up discussions with tenants.

A group of Singaporean real estate agencies created the SRX portal, which serves as an alternative database for the HDB rental market. However, because SRX tracks the market differently than the government, data from the latter can occasionally differ, the analyst said.

According to Nicholas Mak, chief research officer at Mogul.sg, this is "risky for information transparency," which is important for laypeople as well as analysts. Foreign visitors to Singapore who are unaware of the going rates are among those who rely on this information when looking to rent a room or an apartment, he said.

Although this particular case may be an anomaly, Mak emphasised that market transparency remains crucial.

"The government wants an economy that is transparent, and one way to do that is by providing accurate data," he stated. That will also lessen the likelihood of price gouging, where landlords raise rents excessively.

Mak went on: "This could also benefit the government in a way. They can improve their policies with more data.

They will require additional resources to provide more data and have it verified, but that is a necessary part of running a nation. This goes without saying if we wish to brag about having an open system.