Written Answer by Ministry of National Development on disruptive technology enabling private homes to be listed for short-term rental

Sep 13, 2016


Mr Ang Hin Kee: To ask the Minister for National Development 

(a) what are the best practices in terms of mitigation measures to manage dis-amenities arising from disruptive technology such as Airbnb which enable homeowners to list their private residential properties for short-term rental; and 

(b) what steps will the Ministry be embarking on next with respect to its decision on disruptive technology and homeowners offering accommodation for short-term rental via apps.
 

Answer: 

Under the Urban Redevelopment Authority’s (URA) guidelines, residential premises cannot be rented out for a period of less than six months. Short-term rentals are therefore considered an unauthorized use subject to enforcement action. The basis for URA’s enforcement action is to prevent dis-amenity to neighbouring residents, including privacy- and security-related concerns arising from the high turnover of transient guests in residential estates and developments. 

URA investigates all suspected cases of unauthorised short-term rental. In the case of strata-titled developments, Management Corporations (MCSTs) have provided information to URA on specific premises within their developments in which dis-amenity concerns have arisen from the presence of transient guests. Once URA confirms a case of unauthorised short-term rental, it sends an enforcement notice to the person(s) responsible, including the owner of the premises, requiring the unauthorised use to cease. 

In 2015, URA conducted a public consultation exercise on short-term rentals. The review is still ongoing. The issue of allowing short-term rentals warrants careful and balanced review without a rush to conclusion. In particular, we must carefully consider the implications of doing so, given the potential impact and dis-amenity of such rentals on neighbouring residents. We are also studying relevant practices and regulations adopted by other cities, as well as their experiences thus far. 

In the meantime, URA’s guidelines imposing a minimum rental duration of six months for private residential properties continue to apply.