As announced by the Urban Redevelopment Authority (URA), starting on Monday (28 September), housing developers will no longer be able to release options for sale to the same customer for the same unit (OTP). It comes amid the new sale permits launched by the Controller of Construction for building owners.
In specific, developers who have decided at an early stage to reissue OTP for purchasers and to reissue OTP for the same purchaser(s) within twelve months of the completion of the previous OTP for the same model. It is also mandated for developers to “inform clients of this situation in advance.”
Purchasers expect to exercise the option by three weeks on a standard OTP. If during this period the OTP is not exercised, the 25 % reservation cost of the customer will be forfeited.
URA stated that the three-week term of validity is intended to allow individuals to buy homes only if they have the means to do so, to exercise financial restraint and to buy homes.
Nevertheless, it was found that there were instances when OTP was “reissued several times for the same system to the same buyer(s)”-extending the length of the offer considerably. Consequently, the amendment to restrict the re-issue of OTP is necessary.
“In the current economic environment, where workers face instability in the labour market, the need to make property buying decisions is extremely important for greater financial stability,” URA said.