In a move to create a more transparent property market, developers will now have to submit net prices of sold units of delicensed projects.
A residential development may be delicensed if it has been completed and reached CSC status(Certificate of Statutory Completion) and all strata titles issued to the respective purchasers. CSC is usually obtained one year after getting TOP status.
When a prospective buyer makes a purchase from the developer after the project is delicensed, the developer is not bounded by regulations of the Housing Developers (Control & Licensing) Act for that particular project. While the current recording system captures direct discounts, other indirect benefits might not be reflected. Some of these benefits can come in the form of a deferred payment scheme, rental guarantees as well as the absorption of additional buyer’s stamp duty.
While sales of such units from delicensed projects only account for a small percentage. Market watchers say this implementation by URA could be due to the success of various deferred payment schemes offered by delicensed projects(such as OUE Twin Peaks, iLiv@Grange, Reignwood Hamilton Scotts, Waterscape@Cavenagh, D’Leedon) in the core central region. This latest move will take in account such benefits and allow for a more accurate representation of the private property price index.
