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URA’s reply for “Public deserves reliable, consistent data”

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By Property Soul
I have written to The Straits Times Forum regarding the problem of inconsistent and incomplete private property transaction data. Below is my letter (Dec 18, Thursday) andreply from URA (Dec 23, Tuesday).
Public deserves reliable, consistent data
Published on Dec 18, 2014
THE computation of the HDB’s resale price index has recently been improved to give a more accurate picture of price movements in the public housing market (“New way to better reflect HDB resale market”; Dec 10).
In contrast, there are different property price indexes tracking the private residential market – including the Urban Redevelopment Authority’s non-landed residential Property Price Index (PPI), the SRX Property Index (SPI), the NUS Singapore Residential Price Index, and Redas’ Real Estate Sentiment Index – with each one claiming to be more accurate than the others.
The conflicting results from the monthly and quarterly property performance reports released by these organisations confuse the public. For instance, there were at least seven quarters of conflicting price signals between the PPI and SPI from 2008 till now.
Also, the private home transaction data are incomplete owing to the following loopholes:
– Lodging caveats with the Singapore Land Authority is voluntary.
– Developers are not required to submit sales data of their delicensed projects after obtaining the Temporary Occupation Permit.
– All incentives from developers – including stamp duties, cash rebates and rental guarantees – for new projects are not captured, thus inflating the transacted prices of new sales.
The inflated prices of new sales in turn serve as a biased reference for valuation of similar properties. Thus, buyers risk taking bigger housing loans from banks and servicing mortgages higher than the actual market values of their properties.
This defeats the Government’s intentions of ensuring financial prudence of borrowers and maintaining a sustainable property market.
The conflicting indexes make it difficult for the public to have a real picture of the latest market situation.
The market confidence of buyers and sellers is influenced by the announcement of property sales data and price indexes, affecting their bargaining during negotiations and their final decision to buy/sell their properties.
The Government also needs a reliable and consistent private property index that it can monitor closely in order to identify a “meaningful correction” before revising property cooling measures.
Upgrading to a condominium is the dream of many Singaporeans. To many, it is the most expensive purchase in their lives. They deserve more complete, transparent, accurate and consistent data concerning private residential sales in Singapore.
Vina Ip (Ms)


 
URA index shows broad price trends in private home market
Published on Dec 23, 2014
WE THANK Ms Vina Ip for her letter (“Public deserves reliable, consistent data”; last Thursday).
The Urban Redevelopment Authority’s Property Price Index (PPI) provides the public with a broad indication of price trends in the private residential market. The index covers the entire private housing market, including uncompleted and landed properties.
In contrast, the other property price indices tracking the private housing market have different coverage and methodologies. Hence, the resulting price changes may vary.
To compute the PPI, we use data from caveats lodged with the Singapore Land Authority for sub-sales and resales. For new sale transactions, we have complete data on property prices from a regular survey of developers. All discounts and rebates provided by developers are deducted to derive the nett prices.
Besides the PPI, prospective home buyers can view the transaction prices of individual private homes on our website.
We are also working towards releasing the nett prices of individual units sold by developers on our website in the first half of next year.

We assure Ms Ip that we will continue to make improvements to our property market data.
Sin Lye Chong
Group Director, Land Sales and Administration
Urban Redevelopment Authority

What’s next after disclosure of nett prices


 
There is an article “Homebuyers to gain from fuller price disclosures” in The Straits Times that reiterates what URA mentions in their reply – the disclosure of nett prices of individual units sold by developers.
The reporter has interviewed spokespersons from a legal firm, a property agency and a consultancy firm, as well as a home owner and investor. They are all in favor of URA’s reporting of nett prices over the current inflated prices of new sales by developers. Hopefully, property buyers and investors can soon have more accurate and transparent sales transaction data – at least on new project sales by developers.
Looking forward, home buyers would welcome mandatory lodging of caveats with the Singapore Land Authority, and compulsory submission of delicensed project sales data by developers. Afterall, the two missing puzzles are critical to present a complete picture of Singapore’s private residential property market.
 
This post was first published at propertysoul.com

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Chee Soon Juan questions Shanmugam’s $88 million property sale amid silence from Mainstream Media

Dr Chee Soon Juan of the SDP raised concerns about the S$88 million sale of Mr K Shanmugam’s Good Class Bungalow at Astrid Hill, questioning transparency and the lack of mainstream media coverage. He called for clarity on the buyer, valuation, and potential conflicts of interest.

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On Sunday (22 Sep), Dr Chee Soon Juan, Secretary General of the Singapore Democratic Party (SDP), issued a public statement on Facebook, expressing concerns regarding the sale of Minister for Home Affairs and Law, Mr K Shanmugam’s Good Class Bungalow (GCB) at Astrid Hill.

Dr Chee questioned the transparency of the S$88 million transaction and the absence of mainstream media coverage despite widespread discussion online.

According to multiple reports cited by Dr Chee, Mr Shanmugam’s property was transferred in August 2023 to UBS Trustees (Singapore) Pte Ltd, which holds the property in trust under the Jasmine Villa Settlement.

Dr Chee’s statement focused on two primary concerns: the lack of response from Mr Shanmugam regarding the transaction and the silence of major media outlets, including Singapore Press Holdings and Mediacorp.

He argued that, given the ongoing public discourse and the relevance of property prices in Singapore, the sale of a high-value asset by a public official warranted further scrutiny.

In his Facebook post, Dr Chee posed several questions directed at Mr Shanmugam and the government:

  1. Who purchased the property, and is the buyer a Singaporean citizen?
  2. Who owns Jasmine Villa Settlement?
  3. Were former Prime Minister Lee Hsien Loong and current Prime Minister Lawrence Wong informed of the transaction, and what were their responses?
  4. How was it ensured that the funds were not linked to money laundering?
  5. How was the property’s valuation determined, and by whom?

The Astrid Hill property, originally purchased by Mr Shanmugam in 2003 for S$7.95 million, saw a significant increase in value, aligning with the high-end status of District 10, where it is located. The 3,170.7 square-meter property was sold for S$88 million in August 2023.

Dr Chee highlighted that, despite Mr Shanmugam’s detailed responses regarding the Ridout Road property, no such transparency had been offered in relation to the Astrid Hill sale.

He argued that the lack of mainstream media coverage was particularly concerning, as public interest in the sale is high. Dr Chee emphasized that property prices and housing affordability are critical issues in Singapore, and transparency from public officials is essential to maintain trust.

Dr Chee emphasized that the Ministerial Code of Conduct unambiguously states: “A Minister must scrupulously avoid any actual or apparent conflict of interest between his office and his private financial interests.”

He concluded his statement by reiterating the need for Mr Shanmugam to address the questions raised, as the matter involves not only the Minister himself but also the integrity of the government and its responsibility to the public.

The supposed sale of Mr Shamugam’s Astrid Hill property took place just a month after Mr Shanmugam spoke in Parliament over his rental of a state-owned bungalow at Ridout Road via a ministerial statement addressing potential conflicts of interest.

At that time, Mr Shanmugam explained that his decision to sell his home was due to concerns about over-investment in a single asset, noting that his financial planning prompted him to sell the property and move into rental accommodation.

The Ridout Road saga last year centred on concerns about Mr Shanmugam’s rental of a sprawling black-and-white colonial bungalow, occupying a massive plot of land, managed by the Singapore Land Authority (SLA), which he oversees in his capacity as Minister for Law. Minister for Foreign Affairs, Dr Vivian Balakrishnan, also rented a similarly expansive property nearby.

Mr Shanmugam is said to have recused himself from the decision-making process, and a subsequent investigation by the Corrupt Practices Investigation Bureau (CPIB) found no wrongdoing while Senior Minister Teo Chee Hean confirmed in Parliament that Mr Shanmugam had removed himself from any decisions involving the property.

As of now, Mr Shanmugam has not commented publicly on the sale of his Astrid Hill property.

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Redditors question support for PAP over perceived arrogance and authoritarian attitude

Despite Senior Minister Lee Hsien Loong’s warning that slimmer electoral margins would limit the government’s political space “to do the right things”, many Redditors questioned their support for the ruling PAP, criticising its perceived arrogance. They argued that SM Lee’s remarks show the party has ‘lost its ways’ and acts as if it alone can determine what is right. Others noted that the PAP’s supermajority allows for the passage of unfavourable policies without adequate scrutiny.

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In a recent speech, Senior Minister Lee Hsien Loong warned that “if electoral margins get slimmer, the government will have less political space to do the right things.”

Mr Lee, who served as Prime Minister for 20 years, highlighted the risks associated with increasingly competitive politics.

“It will become harder to disregard short-term considerations in decision-making. The political dynamics will become very different,” he stated during his speech at the Annual Public Service Leadership Ceremony 2024 on 17 September.

“Singaporeans must understand the dangers this creates, and so must the public service,” SM Lee stressed.

SM Lee pointed out that Singapore faces formidable internal and external challenges in the years ahead, with rising expectations and demands from citizens.

As growth becomes harder to achieve and politics becomes more fiercely contested, he warned, “Things can go wrong for Singapore too.”

He urged vigilance in preparing for an uncertain future, noting, “As the world changes, and as the generations change, we must do our best to renew our system – to ensure that it continues to work well for us, even as things change.”

Critique of PAP’s Arrogance and Disconnect from Singaporeans

The People’s Action Party (PAP) experienced a notable decline in its vote share during the 2020 General Election, securing 61.24% of the votes and winning 83 out of 93 seats, a drop from 69.9% in 2015.

A significant loss was in Sengkang GRC, where the PAP team, led by former Minister Ng Chee Meng, was defeated by the Workers’ Party (WP).

In discussions on Reddit, some users questioned why they should support the ruling PAP, criticising the party’s perceived arrogance.

They pointed out that SM Lee’s recent remarks illustrate that the party has strayed from effectively serving Singaporeans and seems to believe it has the sole authority to decide what is right.

Others highlighted that the PAP’s super-majority in Parliament enables the passage of unfavourable policies without sufficient scrutiny.

One comment acknowledged that while many older Singaporeans remain loyal to the PAP due to its past achievements, younger generations feel the party has failed to deliver similar results.

There is significant frustration that essentials like housing and the cost of living have become less affordable compared to previous generations.

The comment emphasised the importance of the 2011 election results, which they believe compelled the PAP to reassess its policies, especially concerning foreign labor and job security.

He suggested that to retain voter support, the PAP must continue to ensure a good material standard of living.

“Then, I ask you, vote PAP for what? They deserve to lose a supermajority. Or else why would they continue to deliver the same promises they delivered to our parents? What else would get a bunch of clueless bureaucrats to recognise their problems?”

Emphasising Government Accountability to the Public

Another Redditor argued that it is the government’s responsibility to be accountable to the people.

He further challenged SM Lee’s assertion about having less political space to do the right things, questioning his authority to define what is “right” for Singapore.

The comment criticised initiatives like the Founder’s Memorial and the NS Square, suggesting they may serve to boost the egos of a few rather than benefit the broader population. The Redditor also questioned the justification for GST hikes amid rising living costs.

“Policies should always be enacted to the benefit of the people, and it should always be the people who decide what is the best course of action for our country. No one should decide that other than us.”

The comment called for an end to narratives that present the PAP as the only party capable of rescuing Singapore from crises, stating that the country has moved past the existential challenges of its founding era and that innovative ideas can come from beyond a single political party.

Another comment echoed this sentiment, noting that by stating this, SM Lee seemingly expects Singaporeans to accept the PAP’s assumption that they—and by extension, the government and public service—will generally do the “right things.”

“What is conveniently overlooked is that the point of having elections is to have us examine for ourselves if we accept that very premise, and vote accordingly.”

A comment further argued that simply losing a supermajority does not equate to a lack of political space for the government to make the right decisions.

The Redditor express frustration with SM Lee’s rhetoric, suggesting that he is manipulating public perception to justify arbitrary changes to the constitution.

Concerns Over PAP’s Supermajority in Parliament

Another comment pointed out that the PAP’s supermajority in Parliament enables the passage of questionable and controversial policies, bypassing robust debate and discussion.

The comment highlighted the contentious constitutional amendments made in late 2016, which reserved the elected presidency for candidates from a specific racial group if no president from that group had served in the previous five terms.

A comment highlighted the contrast: in the past, the PAP enjoyed a wide electoral margin because citizens believed they governed effectively. Now, the PAP claims that without a substantial electoral margin, they cannot govern well.

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