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Thread: URA imposes new guildlines on developers

  1. #1
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    Default URA imposes new guildlines on developers

    16 March 2011
    Public consultation on proposed changes to the Housing Developers (Control & Licensing) Act & Housing Developers Rules
    Mr Mah Bow Tan, Minister for National Development, announced in Parliament on 3 Mar 2011 that the Urban Redevelopment Authority (URA) will be enhancing the Housing Developers (Control & Licensing) Act (HDCLA) and the Housing Developers Rules (HDR) to give home-buyers better access to accurate and timely information about the market and units that they are buying.
    URA is seeking public feedback on key proposed changes to the HDCLA and HDR. The consultation period is from 17 March 2011 to 18 April 2011. The feedback will be taken into consideration before the changes to the HDCLA and HDR legislation are finalised.
    The key proposed changes which we are seeking the public’s feedback on are summarised below:
    a Set up showflats that depict the actual units accurately
    Developers are to comply with a set of directions to ensure that the showflat depicts the actual unit accurately, e.g. floor area of the showflat must be the same as the actual unit, and all external and structural walls must be erected.


    b Make available price list
    Developers are to make available price list of units in projects at least 2 days before a project is launched for sale1. For projects which are launched in phases, the first price list will have to contain the prices of all the units made available for sale in the first phase. For the subsequent phases, developers are to make the price lists available on the same day when the units are launched for sale.
    c Provide more mandatory information on housing projects
    In addition to the mandatory information which developers are currently required to provide to home-buyers, such as share value of the unit, developers will also have to provide drawn-to-scale location plan and site plan of the project, unit floor plan and a breakdown of the unit’s floor area listing different types of spaces such as balconies and bay windows. This information will be given to home-buyers before the issue of the Option-to-Purchase2.
    d Provide track record of developers
    Developers are to provide information on at least one completed project, either by themselves, a related company, or by a director of the developer company to home-buyers before the issue of the Option-to-Purchase. New developers who have not completed any project will have to indicate their lack of track record so that home-buyers can make informed decisions on the purchase of a housing unit.


    e Publish transacted prices
    Developers will be required to lodge the prices of transacted units with URA on a weekly basis, on every Friday3 after the end of each reference week i.e. developers must lodge the prices of units sold in the preceding Monday to Sunday (inclusive) by the following Friday. The public can view these transacted prices on URA’s website once they are lodged by the developers.


    f Obtain home-buyers’ consent for changes to the project
    Developers will be required to obtain the home-buyer’s consent for changes that would affect the home-buyer’s unit, e.g. change in the location of the bin centre.
    g Extend controls on advertisements to those on websites
    The existing controls on advertisements in newspapers and sales brochures will be extended to advertisements on websites. Similar to newspaper advertisements and sales brochures, developers will be required to include basic information on the housing project, e.g. tenure and expected date of vacant possession, in advertisements published on websites. Advertisements published on websites also must not contain any false or misleading information.

    Details of the proposed changes to the HDCLA and HDR to enhance transparency and ensure fair contract terms are in Annex A4. These changes are worked out in consultation with the Real Estate Developers Association of Singapore (REDAS). Mr Wong Heang Fine, President of REDAS, said, “REDAS supports the Government’s efforts to take steps to help purchasers make more informed decisions. As a body representative of a large community of property developers, REDAS is committed to continually promote good practices and professionalism among developers to deliver better and higher quality homes for all.”
    We encourage all interested members of the public to submit their comments via the URA website at www.ura.gov.sg/coh_public_consultation. A summary of the main comments received, together with our responses will be published on URA’s website within 2 months after the end of the public consultation exercise. The identity of the respondents will not be disclosed in the summary.
    After taking into consideration the feedback received from the public, the final changes to the HDCLA and HDR will take effect by the third quarter of this year.
    Background
    The HDCLA was enacted in 1965 to regulate and establish guidelines for developers of private residential projects to protect home-buyers’ interests through the following key measures:
    a Ensure equitable sales terms by requiring the use of prescribed Option-to-Purchase and Sale and Purchase Agreements; and b Ensure that monies paid by home-buyers to developers are used solely for purposes related to the development of the project by imposing the requirement to open and maintain a Project Account for the deposit of progress payments. The HDCLA is supplemented by the HDR which stipulates the operational requirements for developers in the sale of uncompleted private housing units .

    1 The launch date of a project refers to the first day when units are made available to prospective home-buyers (i.e. issue of the Option-to-Purchase) including private previews or any other occasion which may take place before the official launch of the project. 2 A home-buyer pays a booking fee of 5% to 10% of the purchase price at the point of issue of an Option-to-Purchase for a unit by a developer. He has a period of 3 to 5 weeks from the date of issue of the Option-to-Purchase to consider his purchase. If he decides not to proceed with the purchase, 25% of the booking fee paid will be forfeited, while the remaining 75% of the booking fee will be refunded to him.
    3 If the Friday is a public holiday, the deadline for the lodging of transacted prices will be shifted to the next working day.
    4 We are also proposing changes to the HDCLA and HDR to simplify licensing requirements. These changes pertain mainly to the business operations of developers and key industry stakeholders such as the Real Estate Developers’ Association of Singapore, the Law Society of Singapore and the Consumers Association of Singapore, which have been consulted separately.

  2. #2
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    You see lah, this is what happen when you don't play ball with MBT. A case of too little too late?

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    Clap clap...

    However, i'm sure the developers will circumvent many of these restrictions. Just start selling before launch i.e "preview for VIP/VVIP/VVVVIP etc...". Not required to obey the transparency rules during previews right ?

    They will always find a way around it. Must fine/jail/suspend a few big fishes to show they mean business, or else such rules will just be a farce.

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    CAPL/Keppel temasek owned woh .. must give MBT a bit of face right
    It is already "no face" that CAPL bid Bishan 869psf and Keppel bid Sengkang 502psf + CDL manages to sell so many H2Os after MBT's "don't buy now, price will drop" sweet talk
    Ride at your own risk !!!

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    "a breakdown of the unit’s floor area listing different types of spaces such as balconies and bay windows."

    this one good for buyers, bad for developers.

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    Wonder many buyers would change their minds to buy after seeing the real show flats of MM units...

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    “REDAS supports the Government’s efforts to take steps to help purchasers make more informed decisions. As a body representative of a large community of property developers, REDAS is committed to continually promote good practices and professionalism among developers to deliver better and higher quality homes for all.”

    REDAS actually cursing and swearing, but have to give "model" reply....

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    Actually, once you sit down and think about it. The guidelines are not going to do anything.
    In a hot market, everybody goes crazy. If one of you backaway after studying, another one will step forward and submit blank check, even without looking at the plans.

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    The big difference is the price list has be made available 2 days earlier. The developer cannot raise the price as and when they like, once the price list is published.

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    Quote Originally Posted by sh
    The big difference is the price list has be made available 2 days earlier. The developer cannot raise the price as and when they like, once the price list is published.
    collect check 4 days before launch?

    or first launch is for vip/vvip

    subsequent launch is for public. price list on day of subsequent launch.
    or subsequent launch, collect checks first?

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    what the developers are going to do is to have many many mini phases. ie 2 units per phase.... release price for 2 units at a go.... release 20 phases in 1 day....

    MBT's brilliant idea not working leh?

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    i think the main idea is not blank cheques. just that prices must be made available 2 days before buyers sign anything can already.

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    Quote Originally Posted by bargain hunter
    i think the main idea is not blank cheques. just that prices must be made available 2 days before buyers sign anything can already.
    How come property held up to higher standard than IPOs?
    IPOs also dont know actual price. They only tell you the range of prices.

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    Quote Originally Posted by sh
    The big difference is the price list has be made available 2 days earlier. The developer cannot raise the price as and when they like, once the price list is published.

    they can always set it really really high ...


    and then give discount ...right ?

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    smaller ipos they give u actual price. for big companies then there's a range, depending on demand.

    for ppty, not sure if it can practically be implemented?

    Quote Originally Posted by hopeful
    How come property held up to higher standard than IPOs?
    IPOs also dont know actual price. They only tell you the range of prices.

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    Taken from Channel News Asia and Today



    SINGAPORE : The proposed changes in the rules that govern Singapore's property developers could dampen sales of small apartment units, according to experts.

    They said the disclosure of more information could lead to better-informed, and thus also more picky, buyers.

    They added that the new rules could also spur competition in the industry, leading to superior innovation and more incentives from developers, offering better values.

    Detailed information that developers will now have to share with prospective home buyers include a break-down of the unit's floor area, listing different types of spaces such as balconies and bay windows.

    Experts said this could be negative for projects with smaller apartments, especially single-room units, which are typically popular with investors.

    Nicholas Mak, executive director, Research and Consultancy, SLP International, said: In future, developers are required to state the size of various parts of the apartment, for example the balcony, the airconditioner ledge and so on.

    "Currently all this area is summed up as the total saleable space of an apartment. But once they are itemised, the buyer will have a better understanding of what is the actual internal space of their apartment, thereby they will be able to make a more informed choice..

    "Buyers could become more picky as well - because for some of so-called mickey mouse apartments or shoebox apartments, a significant proportion of their space are actually aircon ledges or balcony space and such."

    Another new requirement is that developers must transparently list the prices of all the units.

    Observers said this will give buyers the power to compare projects and bargain for a better deal. That will, in turn, put pressure on developers to offer more value-for-money products such as better flooring finishes.

    The new requirement also means developers will have less flexibility to adjust prices according to demand through the day. It will still be possible, but more logistically challenging.

    Some developers, however, believe that too much consumer focus on price could distract them from putting adequate value on quality.

    Danny Low, COO, Heeton Holdings, said: "We don't want to come to a stage where people try to sell an apple for 100 grammes at a certain price, and another shouting I'm selling at this price.

    "And that would distract the attention of the buyer, who will then have to decide, 'Should I go for the cheaper one or should I go for the developer's name behind the project and location?'"

    The new changes will generally mean more disclosure, which could be taxing for smaller developers here.

    Daniel Teo, chairman & managing director, Daniel Teo Group, said: "It's quite onerous - we have to measure and consult and discuss the trend, time consuming.

    "For bigger projects, you may have to get more staff to back you up, engage outside consultants. Overall, it will definitely add to our running costs and reduce our profit margin, if any, with the market situation."

    "We should be able to absorb it, but again development is a fairly high risk, depending on the market situation, so it's up and down and give and take. It will be more taxing on us, but as long as it's more transparent and good for the consumer, we will support that."

    The Real Estate Developers Association of Singapore said it supports the government's efforts to help buyers make more informed decisions.

    Wong Heang Fine, President of REDAS, said: "REDAS supports the government's efforts to take steps to help purchasers make more informed decisions.

    "As a body representative of a large community of property developers, REDAS is committed to continually promote good practices and professionalism among developers to deliver better and higher quality homes for all."

    Market watchers have also applauded the move, which some say are long overdue.

    Colin Tan, director, Research & Consultancy Department, Chesterton Suntec International, said: "The need to breakdown the actual areas for the various spaces in the apartment or house is significant. This will help buyers to compare them with other properties that they are also considering buying.

    "I would further recommend these areas be included in the legal title documents so that the information is not lost when sold onwards to other buyers."

    "Developers will also be more cautious in 'suddenly' or drastically increasing their prices after an unexpectedly good preview or initial sales, as customers will be able to see the trend for the pricing for their projects," said Adam Tan, manager, Corporate Communications & Marketing, Propnex.

    - CNA/al
    Yee ha! Did I tickle your funny bone?


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    I suggest that BCA and Redas work together. Developers are to send their showroom details, plans and marketing collaterals for approval before developers could market to the potential investors. This should include VVVIPs preview and thereafter investors.
    Yee ha! Did I tickle your funny bone?


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    hopefully this will help to stop MM craze....

    itemise usable space goodie....as we only get to see the figures when S&P is delivered now....always ask the agts...say duno....den i goto use ruler to 'argar agar'
    Last edited by devilplate; 17-03-11 at 11:22.

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    This Daniel Teo is despicable. He actually finds telling the truth "onerous"! You mean last time he never bother to measure and reflect the actual unit size at the showflat? Reflecting the truth and actual units size reduce profit margin? Unbelievable. Even if he thinks so and prefer to anyhow build showflats to deceive, he actually has the cheek to say that!

    Also, why would he need to engage more consultants to reflect actual measurements? Surely more "consultants" and brainpower are required to cheat and deceive?

    ======
    Daniel Teo, chairman & managing director, Daniel Teo Group, said: "It's quite onerous - we have to measure and consult and discuss the trend, time consuming.

    "For bigger projects, you may have to get more staff to back you up, engage outside consultants. Overall, it will definitely add to our running costs and reduce our profit margin, if any, with the market situation."

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    Quote Originally Posted by Wild Falcon
    This Daniel Teo is despicable. He actually finds telling the truth "onerous"! You mean last time he never bother to measure and reflect the actual unit size at the showflat? Reflecting the truth and actual units size reduce profit margin? Unbelievable. Even if he thinks so and prefer to anyhow build showflats to deceive, he actually has the cheek to say that!

    Also, why would he need to engage more consultants to reflect actual measurements? Surely more "consultants" and brainpower are required to cheat and deceive?

    ======
    Daniel Teo, chairman & managing director, Daniel Teo Group, said: "It's quite onerous - we have to measure and consult and discuss the trend, time consuming.

    "For bigger projects, you may have to get more staff to back you up, engage outside consultants. Overall, it will definitely add to our running costs and reduce our profit margin, if any, with the market situation."
    That's total BULLSHIT. The developers know EXACTLY what the built-in area is. It's called GFA. Necessity for submission and clearance from URA. They also know exactly what the "extras" are. The difference between the strata area and GFA.

    That's a whole load of CRAP.....

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    Guess what Daniel Teo is the board member for national library board too. Tsk tsk

    Daniel TEO
    Managing Director
    Daniel Teo Group of Companies
    101 Cecil Street #26-08/12
    Tong Eng Building
    Singapore 069533
    62231511
    [email protected]
    Yee ha! Did I tickle your funny bone?


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    Buyers should be entitled to know all prices. Knowing the prices doesn't mean they'll ignore the value of the development's quality. It's absurb that they prefer less price transparency.

    In fact, I think showrooms should have one unit that shows the actual unit before and ID work.

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    Quote Originally Posted by devilplate
    hopefully this will help to stop MM craze....

    itemise usable space goodie....as we only get to see the figures when S&P is delivered now....always ask the agts...say duno....den i goto use ruler to 'argar agar'
    got double standard or not?

    Peter Lim and family occupies entire condo project.
    Rich families stay in 30.000sf GCB.
    Nobody makes noise about inefficient use of space.

    Developer built MMs. People complain about inefficient use of space.

    4 people can occupy 40.000sf GCB.
    yet 4 people cannot occupy 400sf MM?

    It is their choice le.

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    can occupy. if 400 sq ft is 400 sq ft, that's fine. but these MM developers are exploiting planter, bay windows, balconies and now air con ledges! as a percentage of 400sq ft, it is these exploitations (read as PROFITS for developers) that are making MMs inefficient.

    Quote Originally Posted by hopeful
    got double standard or not?

    Peter Lim and family occupies entire condo project.
    Rich families stay in 30.000sf GCB.
    Nobody makes noise about inefficient use of space.

    Developer built MMs. People complain about inefficient use of space.

    4 people can occupy 40.000sf GCB.
    yet 4 people cannot occupy 400sf MM?

    It is their choice le.

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    Quote Originally Posted by bargain hunter
    can occupy. if 400 sq ft is 400 sq ft, that's fine. but these MM developers are exploiting planter, bay windows, balconies and now air con ledges! as a percentage of 400sq ft, it is these exploitations (read as PROFITS for developers) that are making MMs inefficient.
    Should we not let the market decide want MMs or not in housing market.
    Afterall nobody is forcing people to buy MMs or even private properties.
    Government provide subsidised public housing. Nobody forced them to move right?

    Developer cannot profit is it? Only subsales and resales can profit?
    For example, developer launch MM 400sf @1500psf. liveable space only 300sf.
    Does resale owner want to sell only liveable space 300sf@1700psf?
    No right? Resale owner also want to sell at 400sf@1700psf. He also make profit from aircon ledges, planters, bay windows, etc.

    In my mind, having a garden 20,000square feet in GCB is also inefficient. If like plants, go to Botanical garden instead.
    Would like to know more your definition of efficiency. Quite interesting le, the meaning of efficiency.

    I dont mind MM. Should let market decide and not let government regulate everything. Government should regulate only accuracy of data etc, no misleading showflats, slick brochures like condos surrounded by greenery.

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    Quote Originally Posted by hopeful
    got double standard or not?

    Peter Lim and family occupies entire condo project.
    Rich families stay in 30.000sf GCB.
    Nobody makes noise about inefficient use of space.

    Developer built MMs. People complain about inefficient use of space.

    4 people can occupy 40.000sf GCB.
    yet 4 people cannot occupy 400sf MM?

    It is their choice le.
    I think your post is an inefficient use of space

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    Quote Originally Posted by blackpepperj
    I think your post is an inefficient use of space
    care to explain why? or is it just another one liner?

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    i was writing in regard to the title of this thread. it is good that URA lets pple be more aware of how big each area is and how showflats conceal how small each unit actually is. after that, no problem, let market decide whether they want to buy or not.

    of course developers have to make profits. if they provide value add, no problem. the problem now is MM developers are raising psf obscenely by exploiting the loopholes in a/c ledge and balconies. its become a numbers game. for eg, if i sell something of 400sq ft, but 30% is air con ledge/balcony...heh heh, rub hands, how much profit i will make. on the other hand, say for those developers selling small 2 bedders of say 750 sq ft, their balcony and a/c ledge if also big at 150 sq ft (20%) + the psf is not super stretched upwards, at least its not as bad rite?


    Quote Originally Posted by hopeful
    Should we not let the market decide want MMs or not in housing market.
    Afterall nobody is forcing people to buy MMs or even private properties.
    Government provide subsidised public housing. Nobody forced them to move right?

    Developer cannot profit is it? Only subsales and resales can profit?
    For example, developer launch MM 400sf @1500psf. liveable space only 300sf.
    Does resale owner want to sell only liveable space 300sf@1700psf?
    No right? Resale owner also want to sell at 400sf@1700psf. He also make profit from aircon ledges, planters, bay windows, etc.

    In my mind, having a garden 20,000square feet in GCB is also inefficient. If like plants, go to Botanical garden instead.
    Would like to know more your definition of efficiency. Quite interesting le, the meaning of efficiency.

    I dont mind MM. Should let market decide and not let government regulate everything. Government should regulate only accuracy of data etc, no misleading showflats, slick brochures like condos surrounded by greenery.

  29. #29
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    Quote Originally Posted by hopeful
    care to explain why? or is it just another one liner?
    like what you said...u want to support PCP of singpaore, as u claimed u are coward and shallow due to yr investments in Singapore, but when ask if you are singaporean yet, than u said u are not going to convert..than how u vote and support(unless u....), and furthermore u also called singaporean NATO(no action talk only).... you are really one LPPL... cheers...

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    Quote Originally Posted by peterng8
    like what you said...u want to support PCP of singpaore, as u claimed u are coward and shallow due to yr investments in Singapore, but when ask if you are singaporean yet, than u said u are not going to convert..than how u vote support(unless u....), and furthermore u also called singaporean NATO(no action talk only).... you are really one LPPL... cheers...
    Hi all, i think this point about MM (or citizenship) is something of a personal opinion. The one with family of 5 staying at a 398 sqft MM is me, so yeah, it's personal choice too for me.

    But of course if got money to buy 40000sqft house for my family of 5 i also happy. I think as we all know, have better than don't have.

    So small fry like me, do excuse that i only have enough for MM but as long as everyone make money we should be happy for all, esp those who contribute to condosingapore frequently.

    Peace to all of us in these troubled times.

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