Mah Bow Tan
Singapore
“The previous generation of Singaporeans overcame huge odds together to create this improbable nation which we call home. Let this generation work as one to define our country for the next lap of our journey. Sir, on this note, I fully support the amended Motion. Page: 143”
“Like all upgrading programmes, there is a certain budget, and a certain pace at which we will build. We have completed the LUP and now we are going on towards the HIP. The Estate Upgrading Programme (EUP) is ongoing.”
“For those who cannot afford home ownership, we will provide rental flats. For the rest where there is hardship involved, that is where the safety net comes in. I do not think we should make the safety net so wide as to bring in everybody.”
“Building a studio apartment is no different from building any other HDB flat. If a person applies now and the building works start now, he can get it in two-and-a-half years to three years. We have stepped up the building of studio apartments over the last couple of years.”
“Mdm Halimah Yacob asked the Minister for Health (a) how many people have signed an Advance Medical Directive (AMD) and how many have revoked them since; and (b) whether there is a need to review the current rules on AMDs which do not require a person who has revoked the AMD to inform the Registrar, thus causing uncertainty for hospitals t…”
“Parents who wish to exert more control over the maximum mobile service charges incurred by their children may consider service options such as mobile pre-paid cards. IDA is aware of the public's concerns on mobile subscriptions, and will continually review policies and look into measures to further protect the interest of consumers.”
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“Therefore, the NPS rates need to be revised to manage night parking demand. More motorists may choose to pay the half-hourly rate of $0.50 instead of the revised NPS charge and shorten their stay. Motorists who need to park overnight regularly are encouraged to purchase a season parking ticket. At car parks with high demand for season parking, HDB would also remove the Night Parking Scheme and Free Parking Scheme on Sundays/Public Holidays to reduce competition for lots from visitors. Another strategy to increase short-term parking turnover is the Electronic Parking System (EPS). However, EPS is only viable at some car parks, due to the car park layout and high implementation costs. HDB plans to implement EPS at another 300 car parks over the next five years. Parking shortages can also be attributed to the increased demand from households with more than one car. There are about 36,000 HDB households owning more than one car, which is an increase of 60% compared to 2006. To manage demand, HDB accords priority for season parking tickets to the first-owned vehicle of each household on a first-come-first-served basis. If there are season parking tickets left, they will be sold to the households with second and subsequent-owned vehicles (second priority). The balance will be sold to residents who buy season parking tickets for vehicles not owned by them and non-residents (third priority). We seek the understanding of motorists that in land-scarce Singapore, we need to manage the demand for car parks even as we increase the supply where feasible. HDB RESALE FLATS (Information on loanshark activity for prospective buyers) 20.”
“HDB manages about 550,000 car park lots in over 1,800 car parks. With growing affluence, car ownership has increased in recent years. This has resulted in localised shortages at about 10% of HDB car parks. HDB adopts a two-pronged strategy of increasing supply while managing demand to meet residents' needs for car park spaces. To improve availability of car park lots for residents, HDB reserves more red or red/white lots for season ticket holders. HDB also groups car parks together for season parking to even out the demand for car parking and give residents more parking options. In addition, HDB will spend $66 million to provide 5,000 additional car lots where there are localised shortages. Where land is available, HDB will increase the capacity of existing car parks by extending surface car parks, converting vacant land to car parks, or building new multi-storey car parks. Additional decks will be added to existing multi-storey car parks where technically feasible. Work has already begun and 1,100 of these lots will be ready by end-2010 to address the shortages at 26 car parks. However, land is limited. HDB also has to balance the need for parking space with other needs for green spaces or other amenities. Thus, it is essential to complement supply measures with demand management. HDB will safeguard parking lots for residents' needs by regulating short-term demand for parking lots. The increase in the Night Parking Scheme (NPS) charges from $2 to $4 with effect from 1st November 2010 is one such measure. The NPS charges were last revised in 1989. Then, the season parking rates for surface and covered lots were $50 and $75 respectively. The corresponding season parking rates today are $65 and $90. Using NPS for 30 nights costs less than the season parking rates.”
“Mr Speaker, Sir, I beg to move, "That the Standing Orders Committee appointed under paragraph 4(a) of Standing Order No. 100 do consider and report on such amendments to the Standing Orders of Parliament which the Committee may deem necessary." Sir, it is the normal practice for the House to review and amend the Standing Orders from time to time to keep them up to date to meet our current circumstances and also to improve the efficiency of the House. If Members so wish, they may take this opportunity to submit their proposals on amendments to the Standing Orders to this Committee for its consideration. The proposals to the Committee should be submitted by 27th September 2010. Question put, and agreed to. Resolved, "That the Standing Orders Committee appointed under paragraph 4(a) of Standing Order No. 100 do consider and report on such amendments to the Standing Orders of Parliament which the Committee may deem necessary." ADJOURNMENT Resolved, That Parliament do now adjourn to a date to be fixed. – [Mr Mah Bow Tan]. Adjourned accordingly at Ten Minutes past Five o'clock pm to a date to be fixed. WRITTEN ANSWERS TO QUESTIONS FOR ORAL ANSWER NOT ANSWERED BY 3.00 PM OVERNIGHT PARKING IN HDB ESTATES 19. Er Lee Bee Wah asked the Minister for National Development (a) whether the raising of overnight parking charges can adequately safeguard the interests of season parking tickets holders as well as better manage the parking demand at the carparks in HDB estates; (b) what data or studies have been done on overnight parking in HDB estates to support this decision; and (c) what is the Ministry's plan for other long-term solutions to resolve the parking problems in HDB estates.”
“Singapore is planned as an accessible and pedestrian-friendly city with an extensive network of both covered and underground walkways. We have planned for underground walkways and links around MRT stations, especially those within the city centre, to provide seamless, direct and convenient access from the MRT stations to the basement levels of surrounding developments. This includes the Bras Basah and City Hall area. As part of the redevelopment of the Capitol Building/Capitol Theatre site, an underground link below North Bridge Road will be built to connect the site to the City Hall MRT station. The tender for this site has recently closed and is currently under assessment. The site is scheduled to be awarded by November this year, following which the successful tenderer can initiate development of the underground link. In the meantime, pedestrians can continue to get across North Bridge Road by using the two pedestrian crossings at the road junctions nearby. The Urban Redevelopment Authority will continue to study ways to expand our underground pedestrian networks to achieve greater connectivity and improve the overall experience for pedestrians. WRITTEN ANSWERS TO QUESTIONS EARLY ENLISTMENT FOR NATIONAL SERVICE 1. Assoc. Prof. Dr Muhammad Faishal Ibrahim asked the Deputy Prime Minister and Minister for Defence whether he will consider assigning pre-enlistees who have completed their GCE "A" Level Examinations from overseas institutions in June of any year for early enlistment to National Service in September of the same year.”
“Mr Deputy Speaker, Sir, I beg to move, That Parliament do now adjourn. Question proposed. BEYOND YOG - A BIENNIAL SINGAPORE GAMES 5.59 pm”
“Only then will we have a professional and healthy real estate agency sector that will meet the needs of both consumers and those who work in it.”
“We plan for CEA to start operations on 22nd October, which is slightly over a month from now. Mdm Halimah suggested the new Council include a representative from CASE or Singapore Contact. We have not yet set up the Council, but we will look into her suggestion. Mdm Ho Geok Choo and Mdm Halimah asked MND to work closely with the industry to educate and help them transit to the new regulatory regime. I would like to inform them that we have been working with the industry for over a year, consulted them on the key changes and prepared them for the transition. So we will continue to work closely with them to ensure a smooth transition. Sir, I believe I have addressed all Members' concerns and queries. Let me conclude by once again thanking Members for their strong support and useful suggestions. I share Members' views that incompetent and rogue estate agents and salespersons are in the minority. But as Ms Audrey Wong suggested, it is now necessary for the Government to play a more active role to regulate the industry, to safeguard consumers' interest and to upgrade its professional standards. Self-regulation, in this case, clearly did not work. So we need to not only serve the interest of consumers but we also need to protect the integrity of the many people in the industry – salespersons and estate agents who are doing good honest work. Government regulation, however, is not enough. The CEA would never have their resources to directly police an industry which has about thousand over agents and 30,000 salespersons. So the industry and the members of the public and, indeed, others such as bankers and lawyers, as mentioned by Mdm Halimah, will also need to play their part, and I hope they will work with CEA to make the new regime succeed.”
“So, cost would go up and CEA would need to recover this cost through the licensing and registration fees. But I would like to assure Mr Cedric Foo that the fees will be affordable. They will be set to recover the regulatory costs and not over-recover. We are not yet fully cost-recovering. We will seek to work towards full recovery over time. Mdm Ho Geok Choo then asked if a salesperson who has left one agent for another would need to pay registration fees. The answer is yes, because when you change to another agent, the whole process starts, you have to re-register again, and the workload is the same. I think a lot of concerns were expressed by Members about the commissions to be paid. Let me address this issue. Mr Lim Biow Chuan asked if the CEA would prescribe the commission. Mr Ang Mong Seng, Mdm Cynthia Phua, and also Assoc. Prof. Straughan suggested that CEA regulate the new commission rates. Let me state that CEA cannot fix the commission charged because it is anti-competitive. I think the Competition Commission has ruled that fixing a commission is anti-competitive. But more than that, I think it is better for the commission rates to be influenced by the market place, demand and supply of agents' services, and also by educating consumers by telling them that they can exercise their right to negotiate the best commission rates based on the level of services to be provided. I think this is something new but it is something that we must endeavour to inculcate in the consumers. Finally, let me talk about implementation. Mr Lim Biow Chuan asked when the new Bill will be implemented. I would like to assure him and Members of the House that my Ministry will act on this with the utmost urgency.”
“So I think all this information will allow the consumers to make a more informed judgement as to who they are dealing with and it will place the salesperson on notice that the consumers know who they are dealing with. Mdm Ho Geok Choo is concerned that the public register may cause people moonlighting as salespersons to lose their jobs because, as she rightly pointed out, some people may moonlight as part-time agents. The new regulatory regime does not prohibit people from doing part-time real estate work but it will require all persons doing estate agency work, part time or full time, to be registered. Their names will be captured in the central register, the public register, which is an important tool for keeping consumers informed. This is not to deter part-timers but if they want to do this work, if they want to be part of this industry, they must be registered and once they are registered, they will be in the public register. I do not think we should exempt them from this. They will have to sort it out with their employers, whether or not their employers will allow them to do so. On the regulatory fees and commissions charged, once the benefit of regulation is clear, I think Members will accept that there is a cost for regulation as well. The newly set up CEA will have to do a lot more work – regulatory work, enforcement work, investigative work, public education work and development work. There will be a lot more work compared to what is being done today. I think it is not unfair to require the industry to actually contribute to this additional workload and, of course, as Mdm Halimah said just now, CEA must be adequately staffed and has the resources to do its work well.”
“But, of course, CEA will try to keep these fees affordable. On legal representation, consumers do not need to engage lawyers to get a fair hearing. Mediators and arbitrators from the dispute resolution centres are trained to conduct the sessions in a fair manner. So, the proceedings in these centres are not overly legalistic, so they do not need to hire a lawyer. Finally, I want to touch on public education. I thank all Members who spoke and agreed that public education is a very important part of the new regime. There is a lot more that we can do in this area. We can have seminars, forums, consumer guides, and equip them with the necessary knowledge for their training. But CEA cannot do it on its own. It has to work with the industry associations, the authorities, HDB, consumer associations like CASE, and so on. Part of the process of public education must be publishing of relevant information. So the central database of information is necessary. I think Assoc. Prof. Straughan asked whether there will be such a central database to highlight what the Member calls the "black sheep" in the industry. We will have a central database of blacklisted persons, and this will be accessible to the public. We will also set up a public register and this will allow consumers to get more information about the estate agents and the registered salespersons they wish to engage. So the advice or education to the public will be that before you engage that person, log on, get the information from the central register, and find out what this person is doing, who he or she is registered with and whether he or she has any adverse record. It will also, of course, show other things. Like their photographs, where you will know who you are dealing with.”
“The provision in the Bill gives CEA the flexibility to require a security bond when this is needed, for example, situations when there are risks involved in granting or renewing a licence. It is not for all cases but some cases where CEA perceives that there is risk, it will require a security bond. Complaints handling: Mdm Halimah asked about the requirements for the statutory declaration to support complaints. She said they may become a deterrent – she is concerned. I would like to clarify that while the Bill has made such a provision, it will be used selectively. For example, if there is reason to believe that a complaint is frivolous, false or malicious, then CEA can – it is empowered to – require a statutory declaration, but not in all cases. Mr Lim Biow Chuan asked about the effect of a reprimand or a fine – whether a salesperson can continue to practise with adverse records. Well, reprimands and fines are really for minor offences; and as such, the salesperson can continue to work in the industry but his records will be reflected in the central register so that consumers know when they engage this person, they will know whether this person has a record and what kind of record it is. If they commit subsequent offences, more severe penalties will be meted out and then, of course, they can be banned, debarred from practice, have their licence revoked. Let me now touch on dispute resolution. Mdm Halimah sought clarification on whether consumers will be charged if they use the dispute resolution scheme, whether lawyers will be allowed to represent the parties. Consumers have to pay the fees set by their prescribed dispute resolution centres, such as the Singapore Mediation Centre (SMC) or even by CASE.”
“It will disallow auto renewal of the agreement. The exclusivity agreement is usually for, say three months, six months; if you do not renew it, it will lapse. It does not automatically renew itself, unlike the current situation. Each exclusive agency contract or renewal contract will now be limited to three months and the renewal would have to be done by executing a formal written contract. Mr Cedric Foo asked how consumer protection will be enhanced with the new standard agreement. Besides this termination clause, and besides removing the auto-renewal clause, the standard agreement will also require disclosure of any potential conflict of interest. It will require the estate agent to go for dispute resolution if the consumer asks for it. It will also prescribe for the commission to be payable to the agent only upon the completion of the transaction. To address Assoc. Prof Straughan's suggestion to consult the public: yes, the standard agreement has gone through many rounds of consultation with the industry players and with consumers associations like CASE; in fact, we have been cooking this whole Bill for more than a year and the standard agency agreement was one of the things that everybody agreed was a good thing to have. It will allow for add-on clauses, it will allow for other flexibilities that do not contradict the prescribed clauses of the agreement. Our main intention is to protect the consumer, and we will endeavour to do so as much as possible without micro-managing the industry as Mr Lim Biow Chuan mentioned just now. Next, the subject of the security bond. Mdm Ho Geok Choo asked under which circumstances will the security bond be required?”
“Mdm Cynthia Phua, Er Lee Bee Wah and Mr Ang Mong Seng asked if CEA can establish guidelines to stop marketing practices such as the mass distribution of pamphlets, the pasting of advertisements in public areas, and so on. Again, I come back to the code of ethics and conduct. Under this code, estate agents and salespersons are required to comply with all relevant local laws and regulations. In other words, where you have a Town Council's common property by-law or other relevant by-laws which make it an offence to paste flyers on common property, then the code of ethics and conduct will require that they must comply with these local laws. It is difficult for Town Councils and HDB to stop businesses like estate agents from distributing flyers. I know that this is a very pervasive practice and it is a very irritating one, but it is difficult for us to regulate against it. What we can do is to get industry associations to discourage such marketing practices, to get them to promote best practices in marketing – not just because it is an irritation but also because, I think, it will help to raise the standard, the professionalism and the image of the industry. We will be working with the industry associations to try to get them to do so. There are quite a few questions about the standard agency agreement. Mdm Halimah strongly supported the provision for such a standard estate agency agreement. She suggested that it excludes unfair clauses, address issues such as salespersons doing nothing and demanding commission, and so on. The standard agreement will have a termination clause. What this means is that the consumer, the buyer or seller can terminate a contract and not pay the commission fees in the event of a breach in the terms of the agreement.”
“Because if you prohibit family members and business partners, they may find other people who may register the moneylenders' licence: their friends, their close associates; people whom we may not be able to detect; there are many number of names that they can use. What we have decided to do is to ban estate agents and salespersons from making referrals to moneylenders. This is under the new code of ethics and conduct. They will not be allowed to make referrals to moneylenders; and if they do, we can take action against them. If they have moneylenders' licence under the name of a relative and so on, that is not going to help them because they cannot make a referral. Having said all that, again I think they would probably find ways around that and so we will have to continue to monitor the situation. If there are rogue agents who find creative ways to get around this, then we will have to take the necessary action. Several Members have touched on this code of ethics and conduct. Mr Lim Biow Chuan, for example, asked what it involves and whether it will bear due representation, etc. This code of ethics and conduct is a key instrument for CEA to regulate the industry and to weed out errant practices. It will do many things: it will ban referrals to moneylenders, it will ban dual representation; it will also prescribe the standard agency agreement; it will stipulate the duties of the estate agents and the salespersons; it will lay down the requirements for advertisements; it will address conflict of interest situations; and so on and so forth. The code has been drafted comprehensively to cover the many present malpractices of rogue agents, but we will, of course, need to update it regularly to make sure that it remains relevant and effective.”
“Agents will now have the right incentive to add value to the work of their salespersons so that they can retain the good ones, and that is what Mdm Ho was concerned about – how can agents retain their good salespersons. The objective of the Bill is not only to protect consumers' interest but is also to upgrade the professionalism of the industry. If we can do that, estate agents and salespersons will all benefit from it. Mdm Ho Geok Choo also touched on a related point – and that was whether an estate agent will be liable if his salesperson makes a false declaration in his registration application. This goes back to what I said earlier. In the registration process, the estate agent has to support the salesperson's application and so he has to certify that the salesperson has met these registration requirements. If there is a false declaration, if the real estate agent has exercised due diligence, made his own checks and these did not turn up any irregularities then, obviously, we will not hold him responsible. But, if we find that the estate agent is in cahoots with the salesperson, and that a false document was submitted, we will go after the estate agent and we will even, in serious cases, prosecute him in court. Several Members were quite concerned about the prohibition of moneylending activities. Mdm Halimah and Mr Lim Biow Chuan touched on this issue on prohibition of estate agents and salespersons being licensed moneylenders, and they ask if this prohibition can be extended to their family members and also to business partners because they fear that these people will find loopholes and get around the rule. Yes, we have thought about this in our deliberations. The question is how do we address this effectively.”
“Mdm Ho Geok Choo raised concerns with regard to the restrictions on salespersons working for more than one agent. She cited some examples and asked whether we could allow exceptions to the rule. Let me explain why this restriction is necessary. Because if you allow more than one estate agent to be the supervisor of a salesperson, I think the supervisory controls will be compromised. It is very difficult to exercise adequate supervisory control over your salesperson if you know that he is also working for somebody else. How do you take responsibility for that person's actions? It is best that we enforce this strictly and make sure that both the salesperson and the estate agent understand their roles and both exercise their respective roles responsibly. I expect that this rule will change behaviour significantly – both the behaviour of the agents as well as the salespersons. The agents will now have to scrutinise their recruits more carefully, check who they recruit, make sure that they are doing their job properly, etc. Right now what they generally do is that they will accept anybody who comes through the door; and if something does happen, and some complaints come in, they will say, "Oh, this person is not only working for me, he is working for many other people as well." We want to stop that. With full responsibility for their salespersons, they will have to scrutinise their recruitment, supervise their work and be directly accountable for their actions. Salespersons will also have to decide which agent they want to join or if they want to continue their own agency business; because some of them may be sole proprietors. This depends very much on the value-add that the agents bring to their work.”
“The new syllabus is still being worked out, but they will cover all the relevant topics such as real estate concept, law practice, regulations, etc. But I promise him that it will be more comprehensive and more relevant to the industry and the profession, and it will help to raise industry standards. I think Members are also very concerned, apart from the examinations, that there is a good continuing education regime. Like all professions, things change very rapidly, more so in the real estate industry, particularly when they are dealing with HDB transactions. HDB transactions change very regularly. So, it is very important that those real estate agents who want to deal in HDB transactions are up to date with the HDB transactions. It does not mean that they will give the right advice but they should have no excuse after they have gone through the continuing education process. So, we will require salespersons to undergo mandatory continuing professional development – six hours a year. The main focus of the six-hour CPD module will be on the latest changes to Government regulations, policies and procedures, mainly to ensure that salespersons are up to date and can provide sound advice to their clients. The CEA will ensure that there are sufficient qualified training service providers to run the courses and, of course, make sure that the course fees are affordable. Mr Cedric Foo has asked that CEA reviews salespersons who are undischarged bankrupts, under "all who have past criminal records" in the spirit of Yellow Ribbon. I will ask the CEA to take this into account, to consider applications on a case-by-case basis and not to automatically disqualify these people from the trade.”
“Let me now touch on the licensing of agents and the registration of salespersons. Ms Audrey Wong, a while ago, asked about the minimum qualifications for salespersons. Yes, we do require these minimum qualifications as part of the registration criteria. To reiterate the minimum qualifications – four GCE "O" level passes or the equivalent, and also they need to pass the mandatory CEA examination for salespersons, but these are for new salespersons. For existing salespersons, those who have passed these industry examinations, whether the CEHA examination or the common examination for salespersons or the CEA examination, they will not be required to take the new CEA examination for salespersons. And they will also be exempted from fulfilling the four "O" level criterion. We have communicated these provisions to the industry players and I think they are happy with that. Mr Cedric Foo has asked for an elaboration on how the new CEA examination will be different from the current industry examinations. We have looked at this very carefully because it is important as it is part of the effort to raise the professionalism of the industry that we need to have a good common examination. Right now, there is a proliferation of examinations of different standards and requirements. Obviously, people will gravitate to the ones that are easier to pass. What we have done is to set up an Examination and Professional Development Committee to look at a new examination syllabus for agents, licensees and salespersons. This Committee will include people from IEA and also experienced industry players – people who have a good understanding of the knowledge that the agents' licensees and salespersons must have to do a good job.”
“She asked whether we can impose this minimum domicile period in Singapore for foreigners before they can enter the industry. Sir, the answer is we cannot because such measures will contravene the various Free Trade Agreements (FTAs) which we have signed with our trading partners. Under the various FTAs, this would be considered as discriminatory practice. So we are not allowed to do that. But there are other things that we can do. We can put other controls in place to guard against those who, as the Member pointed out, may only be in Singapore for a short time and may not understand the local conditions and, therefore, will not serve the consumers' interests as well. Any foreigner who wants to work in Singapore, including as a salesperson, first of all, will need a work pass from the Ministry of Manpower. He must then also fulfil all the registration requirements – meeting the fit and proper criteria, must pass the CEA examination and must also find an estate agent who is prepared to support his registration because he has to be aligned with an estate agent. So, he must find an estate agent who can support his registration and who is prepared to be responsible for his work. And then he must also be able to persuade the estate agent that he is sufficiently familiar with the local market and local laws, rules and procedures to do his work well. All these new requirements will help to sieve out all those foreign estate agents who come here, so called "fly-by-night", to set up shop for one weekend and then fly off. I think Mr Ang's and Er Lee's concerns are valid ones and my Ministry will monitor the situation closely and take whatever other measures that are necessary to make sure that consumers' interests are protected.”
“Mr Deputy Speaker, Sir, I thank all Members who have spoken in support of the Bill. Let me now respond to the specific issues that have been raised. Let me start off by talking about the scope of the Bill and the scope of the regulatory framework. Assoc. Prof. Straughan asked if consumers can conduct their own property transactions and not engage salespersons. The answer, of course, is yes. In fact, HDB has been actively encouraging buyers and sellers to "do-it-yourself" (DIY). They have put in place measures to help people to do so. HDB does not require or force people to use the services of a salesperson. You can do it yourself. But I must say that the number of people who are able to "do-it-yourself" is still rather low. But, nevertheless, we will continue to encourage such a practice. Mdm Ho Geok Choo asked if foreign estate agents and salespersons are also allowed to market or sell overseas properties in Singapore. Yes, they will be allowed to do so as it is the current practice. But now, with this Bill, they will also need to comply with the new regulatory requirement, which is to get a licence before they can engage in real estate work here. Previously, they could do so, fly in, maybe rent a hotel room somewhere, put an advertisement in the papers and they are off. Henceforth, they will not be able to do so. They must get a licence to transact business here in the real estate business. Alternatively, they can also tie up with a local licensed real estate agent if they want to continue to hold property fairs or exhibitions in Singapore. Mr Ang Mong Seng went one step further and asked whether we can forbid foreigners from working as salespersons and Er Lee Bee Wah also asked if we can introduce a minimum domicile period.”
“However, the new regulatory regime, and CEA when it is set up, cannot guarantee consumer satisfaction and completely eliminate rogue agents and salespersons. The industry and estate agents must themselves realise the need to uphold professional and ethical standards, and deliver good service. Consumers must also exercise due vigilance in their property transactions. Only then can the new regime succeed so that all stakeholders in the real estate industry – whether they are agents, buyers, sellers, developers or the authorities – will benefit. Sir, I beg to move. Question proposed. 4.20 pm”
“For existing salespersons who have not passed an industry examination, they will be given up to a year to take the new examination, provided they have completed at least three property transactions over the last two years prior to the start of the new regime, not an onerous requirement. The one-year transition which starts from 1st January 2011 gives these salespersons a reasonable period to pass the new mandatory examination. Those who are unable to do so by the end of the transition period would not be eligible for renewal of their registration. CEA has been working closely with the industry players to brief them on the key changes and to prepare them for the transition. We will continue to do so, to ensure a smooth transition and minimise the impact on existing agents and salespersons. CEA, when it is set up, will need to undertake significantly more regulatory work and enforcement actions than what IRAS is doing today. Regulatory fees will have to go up correspondingly. The fees will be kept affordable. The raising of professional standards in the industry will benefit both the public and the industry. Sir, let me conclude by reiterating that while the majority of estate agents and salespersons are providing professional service, a few black sheep have seriously tarnished the image of the industry, undermined consumer confidence and hurt the interests of consumers they are supposed to represent. The purpose of the new regulatory framework is not just to safeguard consumers against errant agents and salespersons, but also to preserve the integrity of the industry and the reputation of the large number of agents and salespersons providing professional service.”
“This is to provide a cost-efficient and convenient avenue for resolving consumer disputes with estate agents such as the amount of commission to be paid. My Ministry had earlier proposed a dispute resolution process involving mediation followed by adjudication. However, after due consideration, we have decided to have the process involve mediation followed by arbitration instead. Unlike arbitration where the decision is final, adjudication is generally not a final determination of the dispute but would be subject to final determination by the Court or arbitration. Also, while an adjudication determination is subject to judicial review, the grounds of challenge of an arbitral award are more restricted. So arbitration is likely to be faster and less expensive than adjudication. Transitional arrangements Sir, let me elaborate on the transitional arrangements. To ensure a smooth transition from the current regulatory framework, clause 75 of the Bill provides for existing House Agents licensed under IRAS to be deemed as licensed by CEA until 31st December 2010. Nonetheless, these licensees and their directors and partners must satisfy the new fit and proper criteria and must not be a licensed moneylender or an employee, a director or a partner of a licensed moneylender. Existing salespersons who have passed an industry examination such as the Common Examination for House Agents, the Common Examination for Salespersons and the Certified Estate Agents Examination will not be required to take the new CEA examination for salespersons.”
“To facilitate disciplinary proceedings, clause 53 empowers the Disciplinary Committee to take evidence by oath and summon persons for disciplinary hearings. While the Committee will not be bound by the rules of evidence, parties to the proceedings may be represented by a solicitor. Other than the Disciplinary Committee, the Council will also be empowered under Part VI to revoke or suspend licences or registration if it deems fit. The CEA will require these powers, provided for under clause 54, to expedite straightforward cases such as if an estate agent winds up or if a salesperson withdraws his registration. For criminal offences, such as operating without a licence or registration, providing false information to the CEA or impeding CEA in its functions, the CEA will prosecute the offenders in Court. Offenders may be liable to fines of up to $75,000 or imprisonment of up to three years or both, subject to the type of offence and decisions of the Court. In accordance with the current procedures, alleged criminal wrongdoings, such as fraud and cheating, which are not provided for under this Bill, will be referred to the Police. Appeals Part VII provides for an appeal process independent of the CEA. Clause 57 provides for an Appeals Board of not more than 15 members to be appointed by the Minister for National Development and administered independent of the CEA. Under clause 59, the Appeals Board may confirm or modify the decisions of CEA, or direct the CEA to review its decisions. Decisions of the Appeals Board are final. Dispute resolution Under clause 66 of the Bill, the CEA may prescribe dispute resolution schemes and make regulations to require estate agents and salespersons to participate in such schemes.”
“We have received feedback from consumers that there are unfair clauses in some of the estate agency agreements such as the auto-extension of the exclusivity period in the exclusive agreement to sell a property. To protect consumers from such clauses, CEA will be empowered to prescribe standard agency agreements for property transactions. I would like to clarify that these agreements are those between the consumer and the agent, and not those between the buyer and seller, or landlord or tenant. Inspection, enforcement discipline and offences Sir, notwithstanding the greater responsibility expected of agents to manage their salespersons, the new regulatory framework will also empower CEA to investigate and take direct action against both agents and salespersons for misconduct. I shall now touch on the investigative and disciplinary powers of the CEA. To monitor compliance to the framework, and to look into potential breaches, clause 48 provides CEA’s inspectors with powers to enter the premises of estate agents, requisition information and require attendance of persons for proceedings under the regulatory framework. Clause 49 empowers the Council to refer complaints for investigation or disciplinary inquiry. A Disciplinary Panel will be set up under the CEA to look into such complaints. A Disciplinary Committee of at least three members will be drawn from the Disciplinary Panel to hear disciplinary cases. Subject to the findings of the Disciplinary Committee, clause 52 provides the Disciplinary Committee with a range of disciplinary actions including fines of up to $75,000, suspension, revocation and imposition of additional conditions on licences and registration.”
“Clauses 40 and 41 provide that all salespersons are required to contract with only one agent and operate under a written agreement. This is to avoid the current situation where agents may disclaim responsibility over their salespersons, as the salespersons may be acting for several agents.In addition, clause 38 provides that each agent shall appoint a key executive officer (KEO) to be responsible for the proper administration and overall management of the business and supervision of all its salespersons. The estate agents and their KEOs, directors and partners will all be required to fulfil enhanced qualification and fit and proper criteria. Sir, in the recent Urgent Reading of the Housing and Development (Amendment) Bill, I have highlighted the conflict of interests that may arise if we allow salespersons to be involved in moneylending because they will not be able to fulfil their obligations to their clients when they also profit from moneylending activities. Clauses 31 and 32, therefore, prohibit estate agents and salespersons from simultaneously holding a moneylender’s licence, or be an employee, director or partner of a licensed moneylender. Duties and liabilities of estate agents and salespersons Clause 42 will require estate agents and salespersons to abide by codes of practice, ethics and conduct which the CEA may prescribe. The rules will be included in subsidiary legislation and will stipulate rules such as those banning dual representation by salespersons, proper advertising, and disclosure of conflicts of interest. Failure to observe a provision of the codes may render the estate agent or salesperson liable to disciplinary action by the Council.”
“We have been comprehensive, we have covered all aspects of estate agency work, including introduction and negotiation for the buying, selling and leasing of property for a third person, and all types of property, including all land and buildings, whether residential, commercial or industrial, whether local or foreign, so long as they are marketed, sold, bought or leased in Singapore. However, persons selling, buying or leasing properties for themselves, including property developers and their employees, will not be covered under the new framework, as there is no estate agency work involved. Council for Estate Agencies Part II of the Bill provides for the establishment of CEA. The Council will comprise a President and between five and 15 members, to be appointed by the Minister for National Development. The Council will be supported by full-time staff in the discharge of its various functions. Licensing of estate agents and registration of salespersons Part III of the Bill provides for the licensing of all estate agents and the registration of all salespersons. The latter is a significant change from the existing framework in which salespersons are not registered. Clause 34 of the Bill requires applications for salesperson registration to be made through and with the support of their respective agents. So, the onus is placed on the agents to ensure and certify to CEA that their salespersons satisfy the fit and proper, qualification and other registration criteria. If an agent withdraws its support for a salesperson, CEA will de-register the salesperson. If a salesperson leaves its agent to join another agent, the salesperson will have to re-register with CEA again, through and with the support of his new agent.”
“The public must exercise due diligence to engage the right agents and salespersons, and to conduct their property transactions prudently and judiciously. CEA will help by making public education a key part of its work. A Public Register of estate agents and salespersons will be set up. Members of the public can get more information about their agents and salespersons before engaging their services. The online Register will include any records of offences committed and disciplinary actions taken. CEA will also look into seminars, forums and consumer guides to inform consumers about their rights and responsibilities, and equip them with the necessary knowledge for their transactions. Public education is an area where lots more can be done and CEA will do this jointly with CASE, HDB and the industry. While stronger Government regulation is necessary, Government action alone is not enough. The industry and the consumers must also play their part. Stronger Government regulation, greater industry accountability and better public diligence and education – all these three must work for us to effectively safeguard consumer interest and upgrade the industry. Estate Agents Bill Sir, having explained the rationale and approach for the new regulatory framework, I will now describe the main elements of the Bill. The Bill comprises eight Parts, and deals with the key aspects of regulating estate agency work performed in Singapore. The regulatory scope is defined in Part I of the Bill.”
“Second prong in our regulatory approach is greater industry accountability. Estate agents must continue to be primarily responsible and accountable for the supervision and control of their salespersons. The new regulatory framework will require, and empower them, to do so more effectively. That is the reason we have introduced a registration scheme for salespersons, to be registered with CEA only, through and with the support of their respective agents. To allow estate agents more effective control over their salespersons, the Bill will also require each salesperson to operate under a written agreement with only one agent at any one time, rather than represent multiple agents, which is a common practice today. There is great diversity in the industry. Size of agents varies, and so do expertise and capabilities. Many are sole proprietorships while the larger ones can command a few thousand salespersons. The industry associations with their specialised expertise can help agents upgrade, taking into account their specific circumstances. CEA expects the industry associations to play an important role in this area, and will be working with them to put in place plans to develop the sector. The last and third prong in our strategy, but perhaps the most important of all, is better consumer prudence and education. Ms Tan Hui Yee, a Straits Times correspondent, in an article entitled "Getting Smart Against Rogue Housing Agents", on the 26th of May this year, pointed out that the upcoming regulations "cannot provide iron-clad protection", and that the consumers "will learn that no amount of rules can protect them if they do not learn to protect their own interests". I agree with Ms Tan.”
“In September last year, my Ministry initiated a comprehensive review to strengthen the regulatory framework for the real estate agent industry. Over the last year, my Ministry consulted extensively with members of the public, industry associations, real estate agents and salespersons. Most of them, including the industry players, welcomed greater Government regulation to weed out the bad hats and upgrade the image and professional standards of the industry. They also gave many useful suggestions on the features of a new regulatory framework. Sir, the Estate Agents Bill that I have introduced in Parliament is the result of this review. It will put in place a robust legislative and regulatory framework to better protect consumer interest and raise the professionalism of the industry. It will do so through a three-pronged approach. Three-pronged regulatory approach Firstly, stronger Government regulation. The Bill will provide the legislative framework to enhance licensing conditions for estate agents, introduce registration of estate salespersons, require mandatory examination and continuing professional development, and impose a regulatory Code of Practice, Ethics and Professional Conduct. These requirements will ensure that estate agents and salespersons fulfil the fit and proper criteria, possess the necessary knowledge to provide professional service to their clients, and adhere to ethical practices. The Bill will also confer powers for investigation and allow responsive and calibrated disciplinary action to be taken against errant agents and salespersons. A new statutory board – the Council for Estate Agencies (CEA) – will be set up under my Ministry to provide dedicated resources and focused attention to administer the new regulatory framework.”
“I have personally come across many cases in my meet-the-people sessions, and I am sure so have Members, where salespersons provided wrong or misleading advice, especially for HDB transactions, and got their clients in serious financial situations. I shall cite two cases as an illustration. Case one, an illiterate couple – husband was unemployed and wife was a full-time housewife – they took the "advice" of a salesperson, sold off their existing 3-room flat and was supposed to "upgrade" to a 4-room flat with a bank loan. The husband was unemployed at the time of flat purchase, so the couple should not have been able to get a bank loan. In other words, the employment letter was falsified. The couple went into loan arrears within a year and appealed to HDB for help to settle mortgage loan arrears. In case two, an old aged couple was advised by their salesperson to sell off their HDB flat, so that they could get cash from the sale, and then they were advised or they were told that they would get a rental flat from HDB. The couple did not know that they could not qualify for a rental flat under those circumstances. The salesperson knew but asked the couple to appeal to HDB and to their MP for help. Sir, the existing system is inadequate to deter and deal with such abuses and unscrupulous practices by errant estate agents and salespersons when these arise. Currently, real estate agents are licensed by the Inland Revenue Authority of Singapore (IRAS) under the Appraisers and House Agents Act. Although IRAS licenses estate agents, the existing licensing regime does not empower IRAS to investigate into complaints against them. IRAS also cannot take action against salespersons as they are not regulated.”
“Estate agents and salespersons are engaged as intermediaries in the sale, purchase and lease of properties, and play an important role in helping their clients to get the best value for their property transactions. To perform this function well, it is essential that they do their work professionally and ethically, and act in the best interest of their customers. They must be well acquainted with Government rules and procedures, help clients through the whole buying and selling process, give them correct and proper advice, and generally ensure that their property transactions are as smooth as possible. Most estate agents and salespersons are doing a good job. Unfortunately, complaints against real estate agents and salespersons have risen in recent years. In 2005, the Consumers Association of Singapore received 670 complaints. In 2009, the number had increased by nearly 60% to over 1,070. With over 70,000 transactions in 2009, this translates to about one-and-a-half complaints in 100. The most common complaints are that the salespersons provided unsatisfactory service, were unprofessional in their conduct, misrepresented information, gave wrong advice or used pressure tactics. To be fair, not all complaints stemmed from wrongdoings on the part of the salespersons. In some instances, the complaints were due to miscommunication between salespersons and their clients. In others, the clients themselves were unreasonable or had unrealistic expectations. However, there were indeed cases of unethical practices and misconduct, where errant agents and salespersons took advantage of their clients. The actions of errant agents and salespersons could have serious consequences, especially for the lower income and the less educated.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Sir, allow me to first set the context for the Bill, and explain the rationale and approach for the new regulatory framework for estate agents that this Bill will put in place. Need for new regulatory framework The property sector in Singapore is a significant part of our economy, property transactions amounting to many tens of billions of dollars a year. One special characteristic of our property sector is the high home ownership rate, possibly the highest in the world, due primarily to our comprehensive public housing programme. Hence, unlike other countries where property transactions involve only the well-to-do, lower income households in Singapore also buy and sell properties. Many of them do so through estate agents, even though the Housing and Development Board (HDB) is encouraging do-it-yourself (DIY) transactions. For many Singaporeans, their home is the largest single investment they will ever make. Therefore, it is important that they be given the best possible advice and service in making such an investment. Currently, the real estate agent industry in Singapore comprises some 1,700 real estate agents and 30,000 salespersons. At this juncture, I would like to explain the nomenclature set out in the Estate Agents Bill. The correct legal term for a business doing estate agency work, which is commonly known as estate agency, is the "estate agent"; and the individual doing estate agency work commonly known as property agent is here called the "salesperson". As the new regulation governs the estate agents and salespersons, I will use the correct legal terms henceforth, and I hope Members do likewise.”
“If they have not been taken up yet, they will fall under the old rules. Basically the flats were tendered on the basis of the old rules and we ought to make a clear distinction between those that were sold and tendered out under the old rules, compared to the new ones. FREE SHUTTLE BUS SERVICES TO INTEGRATED RESORTS 9. Mr Liang Eng Hwa asked the Minister of Community Development, Youth and Sports whether the convenient daily free shuttle bus services running at hourly basis from various HDB towns to Resorts World Sentosa have attracted more Singaporeans to gamble at the casino at a higher frequency and whether it has resulted in an increase in problem gambling cases in the neighbourhoods.”
“Yes, that is correct. The eligibility for purchase of DBSS will apply only to those units that were launched after that date, and not before. There are no unsold DBSS flats, because the DBSS scheme was launched two years ago, there is a Minimum Occupation Period.”
“Sir, we have the income ceiling of $8,000 to be eligible for HDB flat, grant and loans. In borderline cases which the Member has described, we do take into account when the appeal comes in, the circumstances of the appeals. In some cases that I have seen, where family circumstances are such that members of the household are incurring heavy medical expenses, HDB does exercise flexibility. That is one of the many situations that may arise. HDB will look into each case on an individual basis. At the same time, like all Government's policies, we need a cut-off somewhere, especially when it comes to the disbursements of grants and subsidies. In the case of the HDB, $8,000 income level is a cut-off mark for the disbursement of such subsidies. Recently, as the Member is aware, we have also raised this $8,000 ceiling to $10,000 and will give subsidies to this sandwich group, not only for ECs, but also for DBSS flats. This is a recognition of the fact that we need to provide more housing options for the sandwich group. For those borderline cases which the Member is talking about, the answer is "yes", we do consider appeals on a case-by-case basis. But it cannot be a blanket approval of granting the CPF Housing Grant to the sandwich group without a proper evaluation of the circumstances. Mr Hri Kumar Nair (Bishan-Toa Payoh): Thank you, Sir. A clarification on the change in DBSS policy. Will the Minister confirm that those earning between $8,000 and $10,000 are not eligible to purchase unsold units in DBSS projects launched before August 2010? If it is so, what is the rationale for excluding such units which were launched before August 2010?”
“That is the supply side, but of course, as Members are aware, we have recently put in place demand management measures to discourage speculative purchases. These two together – increase in supply and demand management measure – will address the current imbalances in the market and will help to restore some stability in the HDB resale market.”
“In the first half of 2009, we scaled back even further because of the economic outlook at that time was very uncertain. Members may recall that many economists thought that the world would enter a period of prolonged recession and there was even talk of a depression. Given those circumstances, it would have been foolhardy for us to keep on pushing out flats or land for housing at the same rate. The Member asked about new immigrants. The influx of new immigrants in recent years has been higher than normal, and they have added to the housing demand. That is only one factor. What is equally, if not, more important in the housing market is the sentiment that is driving other people who also want to buy, and of course the broader economic forces that affect overall demand. In 2009, when things were looking very gloomy, property prices fell even though there were many foreigners and PRs here. The recent appreciation in property prices again is a reflection of improved economic sentiments, low interest rates, a sense that prices are going to go up even further. In Singapore like in many other countries, property prices have moved up sharply. We take a long-term view, but we also need to be cognisant of the short term. Therefore, we have to be very flexible and review our housing supply in a very pragmatic manner. The Government Land Sales (GLS) programme, for example, is done on a six monthly basis. We review the projected demand every six months, for the short, medium and long terms, and we adjust our GLS supply accordingly. Similarly in the HDB market, the number of new flats that are pushed out by HDB must take into account not just the long-term but also the short-term demand.”
“Sir, let me first explain the way MND plans our housing supply by taking a long-term as well as a short-term perspective. MND will first of all take into account the demand. One has to take into account those people who wish not only to buy flats, but also seek to rent. We take into account first-timer households, the upgraders, those who downsize, the private properties' owners who wish to buy HDB flats, the permanent residents (PRs), and even the foreigners because they would be renting. This is the additional demand for HDB flats. At the same time, we also need to take into account the reduction in the demand, due to flats released into the market, emigration and disbarment of existing families. So when we take these two factors into account, we will get the net demand. We reduce this again by the supply that is met by the resale flat market because not everyone buys a new flat. Some of them will go for a resale flat. If we remove the demand that is met by the resale market, we will get the net new flat supply. That is on an aggregated overall basis, but we all know that from a year-to-year basis, demand can fluctuate and vary very significantly from the long-term projection. One of the reasons is the sentiment-driven nature of the market. In other words, people buy because of sentiment. They may actually bring forward their home-buying if they feel that prices are going up and vice versa. MND also reviews its short-term supply on a regular basis to respond to such year-to-year flunctuations. To give Members an example, in 2007, we increased the housing supply by building more flats and by releasing more land in the Government Land Sales programme. In 2008, we had to scale back.”
“We have widened the housing options of first-timer households with monthly incomes between $8,000 and $10,000. In addition to Executive Condominiums (ECs), they can now also buy new flats under the Design, Build and Sell Scheme (DBSS), and they will get a CPF Housing Grant of $30,000. To cater to the demand from these households, HDB is ramping up the supply of land for DBSS and EC developments. In 2010 and 2011, HDB plans to release land for about 7,000 DBSS flats and 8,000 ECs. Just to put things in perspective, in two years, we will almost triple the current stock of 4,000 DBSS flats and almost double the current stock of 10,000 ECs that have been launched since the inception of these schemes. The large supply will help ensure that DBSS developers set their prices at reasonable levels. They have to bear in mind that DBSS flat buyers have alternative options such as resale flats, ECs and private condominiums, and even Build-to-Order (BTO) flats for households earning under $8,000. So if they set their prices too high such that the flats are not affordable to the target group, they will face the risk of not being able to sell their flats.”
“I do not have figures on the breakdown between subsidised and non-subsidised HDB flat owners who own private properties. A few months ago, the estimate was about 3% of all HDB flat owners own a private property. These are the people who made purchases either after the Minimum Occupation Period, or before we changed the rules. In other words, it could be private property owners who bought HDB flats before we changed the rules, or HDB flat owners who bought private property after the Minimum Occupation Period. Overall, it is about 3%. So if we have about 800,000 flat owners today, those who own private property would be about 24,000 owners. There is no breakdown between subsidised and non-subsidised flats. HOUSING OPTIONS FOR MIDDLE-INCOME GROUP 8. Mdm Ho Geok Choo asked the Minister for National Development (a) whether there will be enough Executive Condominiums and flats under the Design, Build and Sell Scheme (DBSS) to cater to the needs of those with a monthly income of $8,000 to $10,000; (b) whether there will be an increase in the prices of DBSS flats; and (c) how will the Ministry ensure that there will be enough DBSS flats and their prices are within the means of all those who are eligible.”
“I remember, and Members will remember, that we had a property boom in the 1990s. At that time there was an upgrading fever. Everybody was buying newer, bigger flats and getting bigger loans, and so on. Then in 1996, the market peaked. After the financial crisis a year later, the market crashed. As a result of that, many people lost their homes, many ended up in negative equity, and we are still seeing the after effects of that in our Meet-the-People Sessions today. So I hope that we do not get to see that situation again. The purpose – I wish to reiterate – is that, we introduced these measures to dampen demand from those who already own a home. If you already own a home, then please refrain from competing in this market with those first-timer couples who do not have a home. Let them have a crack at it. But if you own a home, and you want to downgrade, by all means, do so, and the rules do not disallow you from doing that. You just have to dispose of your private property within six months. I hope that these measures will restore some stability in the property market which has become a bit exuberant of late. It will inconvenience some – those who already own a home, or who hope to upgrade, or who hope to downsize. Even then, I think they will not disagree with me that they will also benefit from a more stable market. I hope people will understand the reasons behind these measures, especially our desire to make it easier for young couples to own their first home and of course, also, our intention to maintain a more healthy and stable property market.”
“I understand. Well, I think that was the point I was trying to make just now to the other Member, Ms Sylvia Lim. If you already own a private property, then please do not, at this point in time, go and compete with the others to buy an HDB resale flat, unless you are genuinely downgrading. If you are genuinely downgrading, you would buy an HDB resale flat and dispose of your private property. That is all right. In other words, that is still a legitimate way for you to monetise your private property in your retirement. I do understand that there are people who want to have the best of both worlds. They want to keep their private properties, they want to stay in HDB flats. The private property can be rented out for investment, and so on. As I said, we have a genuine need from first-timer couples for HDB resale flats and I think we should let them have first priority. I think the other group that was complaining or probably feel disadvantaged consists of those who are upgraders, people who want to upgrade from HDB flat to another. Again, let me say that the rules actually do not disadvantage them. In fact, the rules require them to be a bit more prudent in their purchases. I have received a lot of feedback and complaints from Members of the House and as well as from other sources that these new rules actually disadvantage people from trying to upgrade or downgrade or use HDB flats as an investment. They said this is a legitimate aspiration, so why am I preventing them from doing so. These are all very genuine concerns but I guess what does worry me is that they are premised on the assumption that the property market will keep going up. They ask why we are denying them this opportunity to upgrade or to buy another flat. That brings me to the situation in the 1990s.”
“Sorry, I did not quite understand the Member's question. The Member's is asking, "Why can they not stay in their private property?"”
“In other words, he could have bought a non-subsidised HDB flat, kept his private property and moved into the HDB flat. He could have owned both properties at the same time, whereas a subsidised HDB flat owner could not. So, we have changed the rules to make it equitable, to make it fair for both the HDB flat owner as well as the private property owner, within the MOP which was three years and now five years, rather than saying that we are penalising the private property owner, we are actually making it equitable for both the HDB owner as well as the private property owner. We are also making these rules equitable and fair for all property owners whether permanent residents (PRs) or citizens.”
“Sir, yes, I do empathise with the concerns of people who probably were hoping to sell their private property and move into a HDB flat. But the rules do not actually disallow them from doing so. In fact, they are able to move from their private property and downgrade to a HDB flat, provided they do not own both at the same time. So, for those people who wish to downgrade for their retirement, the new rules do not penalise or disadvantage them at all. However, there are some people who wish to buy a HDB flat and at the same time own a private property. I think those are the people that the Member was talking about. To those people, I would say that at this point in time, we want to reinforce the use of the HDB flat as a flat for long-term owner-occupation, not as a mode of investment. Why? Because we want to make sure that those who are in urgent need of a HDB flat will be able to buy a flat, especially those young first-timer couples who may not want to wait three years for a new flat, and who want to buy a resale flat, can do so. So, yes, there would be some who would be inconvenienced, there would be some who would be disadvantaged in a way, but I hope they understand the reasons for this move. We are trying to make sure that our first-timer couples are able to get the flats that they want. As to whether the Ministry is penalising the private property owner, as opposed to the HDB owner, I think the rules that we have put in place, in actual fact, address this anomaly. Let me explain. In the past, a new subsidised HDB flat owner could not buy a private property until after five years, which is after the Minimum Occupation Period (MOP); whereas a private property owner could do so.”
“However, given the current state of the market, where there is ample public and private housing supply in the pipeline and the prevailing momentum of prices, these measures will encourage them to exercise greater financial prudence and think carefully about their purchases. In summary, the measures taken seek to pre-empt a property bubble from forming, and the negative consequences to them and to the economy as a whole, when it bursts.”
“Mr Speaker, Sir, the objective of the property measures that were introduced by the Government on 30th August 2010 this year is to maintain a stable and sustainable property market, where prices move in line with economic fundamentals. There is a danger of a property bubble forming, given the strong momentum of the market, and the likely slowdown in the pace of economic growth, as well as the economic uncertainties ahead. The measures are aimed at reducing the level of speculative demand in the market and encouraging financial prudence. Genuine buyers, especially first-time buyers, are not unduly affected. The extension of the holding period for the Seller's Stamp Duty (SSD), from one to three years, is targeted at short-term speculation. The lowering of the Loan-To-Value (LTV) limit for housing loans from 80% to 70% and the increase of the minimum cash payment from 5% to 10% of the property price are also restricted to home buyers who already have one or more outstanding housing loans. First-time home buyers, who do not have any outstanding housing loan, are not affected by the measures. They can continue to take loans of up to 80% LTV and pay only 5% in cash for their property purchase. For the HDB market, the changes in the Minimum Occupation Period (MOP) rules reinforce the long-term owner-occupation objective of HDB flats. Genuine home buyers including first-timers who intend to stay in their flats for the long term will not be negatively affected. In fact, they will benefit from reduced competition from those who are not in urgent need of housing. There will be upgraders or investors who may be deterred from buying at this point because of the new measures.”
“Mr Laurence Wee Yoke Thong asked the Minister for Community Development, Youth and Sports (a) what is the trend of abandoned children in Singapore over the last five years and, if increasing, what are the steps and preventive measures taken to address the issue; and (b) whether the Government will consider developing a baby hatch similar to the one in Malaysia.”
“Foreigners' share of all sale transactions of private residential properties in Singapore is relatively small. In the first half of 2010, foreigners accounted for about 13% of all private housing purchases. Local buyers still make up the vast majority of purchasers of private housing in Singapore. The recent increase in private property prices is a result of a combination of factors, such as improved sentiments arising from the fast economic recovery and abundant liquidity in the economy. It is not due to any single factor, such as foreign buying. The Ministry of National Development (MND) monitors the market closely to ensure that there is sufficient supply to meet the demand for private housing from both locals and foreigners. As at second quarter 2010, there were about 61,800 uncompleted private residential units in the pipeline which will be completed over the next few years. Of these, 32,600 units have not been sold yet. The Government has ramped up the supply of land for private residential developments via the Government Land Sales (GLS) Programme. In the second half of 2010 GLS Programme, we are making available sites that can yield about 13,900 private housing units, of which about 8,100 units will be from sites on the Confirmed List. This is the largest supply the Government has ever offered since the GLS Programme started in 1991. We will inject an even larger supply of private housing in the first half of 2011 GLS Programme if demand continues to be strong. ABANDONED CHILDREN IN SINGAPORE 39.”