Oral Answer by Ministry of National Development on short-term accommodation
Jul 11, 2018
1. Mr Alex Yam Ziming: To ask the Minister for National Development with the conclusion of public consultation on short-term home rentals,
(a) what are the main feedback and concerns provided by the public during the consultation exercise;
(b) when will new regulations be presented to Parliament for debate; and
(c) how many illegal rentals have there been so far; and (d) how does the Ministry intend to police the current short-term rental websites before the laws are put in place.
2. Er Dr Lee Bee Wah: To ask the Minister for National Development in light of concerns from some condominium owners on the further relaxation on short-term leases,
(a) whether the Ministry will consider getting 100% approval from current property owners in each condominium before short-term lease like Airbnb can be allowed;
(b) whether the potential impact of short-term leases on the hospitality industry has been considered; and
(c) how is the Ministry dealing with illegal leasing of property currently listed on websites like Airbnb.
3. Mr Melvin Yong Yik Chye: To ask the Minister for National Development
(a) how many Airbnb cases have been reported in HDB units and private residential units respectively in the past three years; and
(b) what is the typical time frame for investigation to complete after a case has been reported.
Answer
The Urban Redevelopment Authority (URA) conducted a public consultation exercise on short-term accommodation (STA) from 16 April to 31 May 2018.
Many respondents supported the need for regulations on STA, given that STA can cause negative externalities to other residents. Key concerns raised include safety, security and privacy, as well as abuse of common property. Many also supported regulating STA platform operators, for example through a licensing framework.
One of the proposals was to require the Management Corporation of a strata-titled residential development to obtain the support of at least 80% of the share value in the development before STA can be permitted in any residential unit. The intent is to give home-owners a say in whether or not to allow STA in their development.
There was mixed response to this proposal. Some respondents felt that an 80% threshold would be unfair to the minority who do not support STA, but have to accept the presence of STA guests in their developments. On the other hand, there were some who felt that an 80% threshold was too high, and that it would be difficult to obtain sufficient votes in support of STA among home-owners. URA is now in the process of carefully studying the feedback before deciding how to take this issue forward, including how to structure the final regulatory approach, and whether there is a need for any legislative amendments.
Er Dr Lee Bee Wah asked about the impact of legalising STA on the hospitality industry. This is something that we have indeed considered very carefully. The proposed regulatory framework includes controls which are similar to those imposed on the hospitality industry. For example, under our proposed safeguards, STA hosts must collect and record the personal details of their guests, and comply with fire safety regulations such as the provision of fire extinguishers in their units. We have also proposed licensing platform operators, so that they can also help to ensure that STA activities do not cause problems for other residents. The intent is to provide a more level playing field between the STA sector and the hospitality industry. As I mentioned, these are proposals that we have put out. We have done one round of consultation, received feedback, there are mixed views, so URA is studying the matter very carefully to see what is the best way forward. Even as we consider the deliberations very carefully, I would like to emphasise that the minimum stay duration of three consecutive months for private residential properties still applies. URA will take enforcement action against those who breach this rule.
Mr Alex Yam and Mr Melvin Yong asked about the number of such cases. From 2015 to 2017, URA received 1,808 reports of STA in private residential units. In the same period, the Housing and Development Board (HDB) received 390 reports of STA in HDB flats.
The time taken by URA and HDB to investigate a report of unauthorised STA depends on the circumstances of each case. Conducting ground inspections and interviews to obtain evidence of an offence can take several months in some instances. However, if the party making the report is able to provide details and documentary evidence of the suspected offence, investigations can be completed more expeditiously.