Rules to make showflats fall in line with the truth

[mr funny]

http://www.businesstimes.com.sg/sub/...95140,00.html?

Published February 8, 2011

Rules to make showflats fall in line with the truth

Developers will have to make sure that the units give an accurate picture and don't mislead buyers

By UMA SHANKARI


(SINGAPORE) The Ministry of National Development (MND) plans to introduce new regulations to make sure that developers build showflats that accurately represent the actual units in a project, sources told BT.

The move is meant to ensure that buyers are not misled by the interior design work at some showflats, which developers use to entice buyers before a residential development is completed.

Developers have been known to leave out structural walls and columns when building showflats in order to make apartments seem more spacious. Another common tactic is to avoid clearly marking where a balcony starts, which makes living rooms appear larger.

With the new rules, developers will be prevented from leaving out structural walls and columns from their showflats if completed units in the development will have these structures.

In addition, structural walls in showflats will have to be of the same thickness as those in the actual homes. Non-structural walls will have to be clearly marked out. Showflat ceiling heights will have to be accurately reflected as well.

The transition from the living room to the balcony will also have to be clearly demarcated, although how this can be done is still being finalised.

MND could also mandate that other essential elements such as bomb shelters and service balconies have to be present in showflats, sources added.

The ministry is likely to launch a consultation exercise within the next few weeks before finalising the new regulations. The new rules could then be implemented in the second half of this year, BT understands.

Developers BT spoke to said that the problem of misleading showflats is not all that common in Singapore.

'The bigger boys don't really do it (build misleading showflats),' one developer said. 'But it happens, especially with so many new entrants in the market.'

Of late, a few developments - including those offering mostly small, 'shoebox' units - have come under criticism for having showflats with ceiling heights that are 'not real', extending living room spaces into balconies, and extensive use of glass and mirror walls in the place of structural walls.

In one extreme case, an entire wall which was supposed to separate one unit's living room from the next apartment was replaced by just masking tape on the floor - albeit high-end masking tape.

Sometimes, even sales agents who walk prospective buyers through such showflats do not know that they are not accurate representations of the completed units.

Analysts welcomed the planned regulations, which are seen to be in the interest of genuine owner-occupier homebuyers.

'This ought to have been done some time ago to weed out unscrupulous developers,' said Knight Frank chairman Tan Tiong Cheng.

'The whole idea of building a showflat is to illustrate the possibility of what can be done with the actual unit. If the interior design work is misleading - such as when structural walls and columns are left out - then the point is lost; you can't do that with your own unit,' Mr Tan said.

Added Ku Swee Yong, chief executive of International Property Advisor: 'A showflat should fully represent the location and thickness of the walls and pillars. Ceiling heights also have to be accurate. This will give a much closer representation of the space that an investor will enjoy when he receives the keys to his apartment.'

Mr Ku added that investors who are concerned that showflats may not fully represent the actual product should consider completed properties instead.

[mr funny]

http://www.straitstimes.com/PrimeNew...ry_632754.html

Feb 9, 2011

Showflats: Is what you see what you get?

URA reviewing rules to ensure they are accurate and buyers get what they pay for

By Esther Teo, Property Reporter


TOUGHER rules to ensure that showflats look like the apartments that eventually get built are on the cards to ensure that buyers get what they pay for.

The move is to stop developers taking artistic licence with display homes by removing structural walls and columns and placing ceilings higher to make the unit look bigger than it will actually be.

Some buyers have been shocked at how small their units turn out to be compared with the plush showflat they saw at the launch.

The Urban Redevelopment Authority (URA) said yesterday it is reviewing the Housing Developers (Control & Licensing) Act and Housing Developers Rules to provide 'more accurate and transparent information on housing projects', and so help buyers make better decisions.

That is likely to mean ensuring showflat dimensions are accurate and that advertisements do not exaggerate a project's location and plan, and so reduce the number of buyers claiming misrepresentation, sources said.

Industry watchers say the URA could insist that bomb shelters - which are built into completed units - are included in the showflat's layout.

Developers might also have to ensure that walls replaced with glass panels - tricks used to make an apartment look more spacious - are clearly indicated.

Balcony space would also be clearly demarcated so that the living room space is not made to look larger than it actually is.

Ceiling heights in showflats and the thickness of structural walls might also have to be in line with the actual home.

Most developers welcome the move, saying it will likely benefit buyers unsure about what is included and what is not.

Global Property Strategic Alliance chief executive Jeffrey Hong said the prevalence of shoebox units - those under 500 sq ft - may have prompted the URA move. The tiny flats have been promoted aggressively recently, and buyers may have been upset when they got their keys.

'Accuracy is very important. Sometimes, buyers are unsure as to what in the showflat will be included in their purchase,' said Mr Hong.

The space housing the air-conditioner ledge and planter box is sometimes included as part of the showflat area, he added.

Boutique developer Oxley Holdings' chief executive, Mr Ching Chiat Kwong, said the URA routinely checked his showflats last year: 'There is no point in taking out walls. At the end of the day, if there is a dispute, it will look bad for our image. I don't think it is worth the cost.'

EL Development managing director Lim Yew Soon noted that developers should not show things that are misleading.

The URA said yesterday it is also reviewing the Act to simplify licensing requirements for developers. There will be more details when a public consultation on the proposals is launched next month.

Developers and real estate lawyers The Straits Times spoke to said the requirements for developers were fair.

Ms Leong Pat Lynn, a partner at Rodyk & Davidson (LLP)'s real estate practice group, said the requirements are there to protect buyers. 'Simplifying licensing requirements could be procedural or...a clarification of how the URA assesses certain criteria for less straightforward or unusual cases,' she said.

This could, for example, involve re-evaluating what constitutes a developer's track record - one of the current criterion - and possibly accepting non-residential development experience.

[email protected]