Authorities investigate ‘misleading’ S$2 million Sengkang listing

SINGAPORE — The property listing of a “giant flat” in Sengkang has caught the attention of authorities, who called the advertisement misleading.

The Council of Estate Agencies (CEA), the government regulator of Singapore’s property industry, will investigate the matter: an advertisement for a “giant flat” in Sengkang, listed at S$2 million (US$1.47 million) .

In a joint statement issued on Wednesday (May 8) in response to media queries, the Ministry of National Development (MND), the Housing and Development Board (HDB) and the CEA also addressed the listing of a design-build, five-bedroom building worth S$2 million. and Sell Scheme (DBSS) HDB flat in Toa Payoh.

SENGKANG ‘JUMBO FLAT’

The property listed on online portal PropertyGuru was not a “giant flat” but two adjacent 5-room flats that cannot be converted or sold as a single unit, MND, HDB and CEA said.

There are no giant flats at the listed address, Blk 314C Anchorvale Link.

Officials said the listing price of the “jumbo flat”, at S$2 million, was also well above recent negotiated prices in the district.

“Over the past six months, 5-bedroom flats in the district have traded for around S$580,000. The listing price of S$2 million is therefore more than S$800,000 above the combined value of the two 5-bedroom flats,” said MND, HDB and CEA. in their joint statement.

The real estate agent who posted the ad has since removed it after CEA brought the misleading ad to the attention of the agent’s real estate agency.

“CEA is investigating the matter and will take firm action if any violation is detected,” officials said.

S$2 MILLION LIST FOR TOA PAYOH FLAT

MND, HDB and CEA also addressed the recent listing of a DBSS flat in Toa Payoh. At S$2 million, the listing price is almost half a million dollars above the highest transaction price in the area.

DBSS flats are built by private developers on land purchased from HDB. They are still classified as HDB flats. The plan, which began in 2005, has been suspended since 2012.

The three government bodies said they were aware that the agent who listed the flat for sale had described it as good value for money.

However, many real estate experts consider this unrealistic, even given the unit’s attractive features, according to the joint statement.

“Currently, there is no intention to sell registered with HDB for this particular flat, which means that potential sellers of this flat cannot grant any option to purchase (OTP) at this stage,” MND, HDB and CEA said.

They also reminded real estate agencies and agents to uphold the integrity and professionalism of the real estate industry.

Officials also noted that industry players have an ethical obligation to act not only in the best interests of their customers but also of the public, including potential buyers. “

“To protect the interests of the public and promote transparency of information to facilitate informed decisions of prospective buyers, the CEA will also examine the information submitted by real estate agents when marketing HDB flats,” officials said.

In 2023, more than eight in 10 first-time households who picked up the keys to their new apartments or bought second-hand apartments had a mortgage servicing ratio (MSR) of 25 percent or less at the time of key collection.

This means they can pay the monthly HDB loan installments with their CPF contributions, with little or no cash outlay.

At current listing prices, the DBSS flat and the two 5-bedroom flats in Sengkang will have a significant cash valuation (COV), which will need to be paid in full in cash upfront.

Resale flats that traded for S$1 million or more form a small minority of all resale transactions, MND, HDB and CEA said, noting that such flats have attributes such as good locations and their proximity to amenities and stations. MRT.

These units cater to a small group of Singaporeans with unique preferences and better financial means, according to the joint statement.

MND, HDB and CEA strongly advised potential buyers to carefully evaluate their finances and housing options and to be rational and prudent in their purchasing decisions.

“While the HDB resale market transacts on a ‘willing buyer-willing seller’ basis, the Government will not tolerate behaviour, whether by agents or sellers, that seeks to disrupt the market or stoke consumer sentiment.” , MND, HDB and CEA said in their joint statement.

“We should not expect housing prices to rise indefinitely amid global economic uncertainty and geopolitical instability.” CNA