Sep 15, 2016

    URA to include delicensed properties in its price index

    THE Urban Redevelopment Authority (URA) will include sale transactions of delicensed residential projects in the computation of its quarterly private-home price index.

    This was announced by Real Estate Developers Association of Singapore (Redas) president Augustine Tan yesterday. "I am pleased to note that through dialogue with Redas, URA will include sale transactions of delicensed projects in its property price index to improve transparency in the property market."

    The Business Times understands that URA has begun collating such information.

    A housing project may be delicensed if it has received Certificate of Statutory Completion, and where the individual strata titles have been issued to buyers.

    But developers of delicensed projects are no longer required to submit weekly sales data to URA, and has leeway to launch novel marketing schemes.

    For delicensed projects, URA uses data from records submitted to the taxman for stamp duty payment, which some industry players say may not reflect some of the indirect incentives given by developers to woo buyers.

    As a result, some market watchers have suggested that URA's price index, particularly for Core Central Region, may be slightly inflated as some incentives given by such developers may not be captured in the sales data URA uses to compute its price indices.