Amidst much buyer dissatisfaction with the Singapore housing market, the Urban Redevelopment Authority (URA) is working on a raft of new rules to make developers’ actions more transparent and protect homebuyers.
(One of the property marketing tactics that the URA will clamp down on is false or misleading website advertisements. Image courtesy of Thinkstock.)
The proposed changes will lead to an overhaul in the way developers conduct business, targeting specific methods such as misleading advertisements, pressure selling, and adjustments done to showflats. In particular, the tweaking of showflat dimensions is one area that sees little transparency. Some developers have been known to make use of misleading marketing gimmicks, for instance removing partitions and raising ceilings to create the illusion of wider spaces.
With its proposed changes, the authority hopes to reinstate buyers’ confidence in the market by making sure consumers are more aware of such marketing tactics. In terms of dimension adjustments, developers will be required to accurately depict the actual unit in their showflats. The showflats will need to have the same floor area as well as floor-to-ceiling height as the units they promote.
Additionally, where there are removed partitions in the showflats, signs have to be put in place to mark the positions that doors or walls should be. The floor area of each room has to be explicitly stated, so buyers get a clear idea of what they are really paying for.
Furthermore, the URA will also require a price list from developers for private units launched at least two days before the first option to purchase is issued. Other changes hopefully taking place include putting controls in place to ensure website advertisements do not contain false or misleading information. Developers also have to provide their track records.
As for errant developers, URA aims to deal with them severely: the authority plans to blow the whistle on those who violate these or other regulations, and post a list of such developers on its website for private home buyers’ perusal. Should a developer continue flouting the rules, it may also receive the maximum penalty—a suspension of its license.
The date for these changes will be announced at a later stage, as URA is currently refining details of some of the proposals and making consultations with players in the industry.
The question now is: will these changes positively impact the way buyers view the private homes market?
It is certainly hoped so, as the authorities begin various methods to knock down the barriers that make information inaccessible to consumers. With the government now making its stance on unethical marketing tactics in the private housing market clear, buyer doubts and hesitance will inevitably wane over time.
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