Private home buyers to benefit

Private home buyers to benefit

BUYERS of resale private property will benefit the most from the new reforms aimed at improving safeguards and market transparency, industry players say.

Such buyers, said R'ST Research director Ong Kah Seng, do their homework and actively negotiate on price so the more information they have at their disposal, the better prepared they will be.

Buyers will be able to access data such as transacted prices of individual units in a project on the Urban Redevelopment Authority website every week starting on June 5.

The move is aimed at boosting transparency and protecting the interests of all buyers, including those who buy directly from the developer.

Mr Ong said the frequent updates will be also useful for buyers of new homes, as these will encourage them to be more active about doing their homework, despite the fact that they cannot negotiate on prices.

Many developers have been producing the kind of data required under the new rules on data effected in 2013, including ensuring that showflats accurately depict a project's units.

CDL said it already has processes in place to submit weekly detailed sales information, while CapitaLand Singapore noted that its showflats have always accurately depicted actual product specifications and dimensions.

Rodyk & Davidson partner Lee Liat Yeang also noted that the new showflat rules are good for developers.

"While these rules make the presentation of show units more challenging, they also serve to avert issues of misunderstanding that may arise between buyers and developers."

Car saleswoman Alison Phua, 49, who used to live in a condo, welcomed the new measures. She said of her own experience: "The showflat was very impressive, but when we collected the key and saw the place, there were a lot of flaws.

"Showflats that are more precise will eliminate a lot of unnecessary disappointment."

The Straits Times / Top of The News Published on Tuesday, 19 May 2015

By Rachael Boon rachaelb@sph.com.sg

Additional reporting by Rachel Tan and Phyllis Ho

Private home buyers to benefit

BACKGROUND STORY

New rules and safeguards

Weekly collection and publication of transaction data

Developers must submit details, such as sales volumes, transacted prices of individual units, and the value of any benefits extended to buyers, from next Monday.
The information will be published on the Urban Redevelopment Authority (URA) website each week from June 5.

More comprehensive information in transaction documents

Standard forms, such as the option to purchase and sale and purchase agreement, will be improved. The changes take effect on July 20.
Developers must indicate the value of any benefits offered to buyers, for instance.

Ensuring the accuracy of show units

New Housing Developers (Show Unit) Rules that take effect on July 20 require developers to produce accurate depictions of show flats for housing units on sale.
One new rule requires the floor area of the show unit to be the same as that of the actual home unit, for instance.

Source: Ministry of National Development