Preventing Singapore Residential Properties from Being Leased on Websites like Airbnb
Ministry of National DevelopmentSpeakers
Summary
This question concerns measures to prevent residential properties from being leased for shorter than the legal duration on websites like Airbnb. Mr Chong Kee Hiong inquired about enforcement rigor, penalty increases, and whether the Ministry would consider penalizing websites that host such illegal listings. Minister for National Development Lawrence Wong replied that enforcement targets hosts via investigations rather than listings, with the Urban Redevelopment Authority (URA) imposing composition fines up to $5,000 for first-time offenders. Since May 2019, the URA has issued seven composition fines and secured four court convictions, with more prosecutions expected as enforcement actions are stepped up. Additionally, the Council for Estate Agencies will revoke the registration and debar any estate agents found to be complicit in illegal short-term accommodation operations.
Transcript
42 Mr Chong Kee Hiong asked the Minister for National Development regarding listings of Singapore residential properties for lease periods shorter than the legally permitted durations on websites such as Airbnb (a) what measures are in place to prevent such listings; (b) how rigorous are the enforcement measures; (c) whether penalties should be increased; and (d) whether the Ministry will consider penalties for websites which host such illegal listings including temporary bans.
Mr Lawrence Wong: The listings on websites like Airbnb typically do not contain specific information on the property and its owner, or the terms of the rental arrangement. So, the key to effective enforcement against illegal short-term accommodation (STA) is not so much by targeting the listings, but by conducting investigations against all suspected cases and taking action against the STA hosts.
Over the past year, URA has been stepping up its investigations of residential units suspected of STA use. Where there is evidence of illegal STA operations, URA will take enforcement action and impose penalties on the perpetrators.
For those renting out their homes on a casual basis, and caught for the first time, URA will impose a composition fine, of up to $5,000. Since May 2019, URA has issued seven such fines. For repeat offenders and those who undertake STA operations on a commercial scale, URA will prosecute them in court, and seek higher penalties. So far, URA has secured four convictions in Court. With the increase in investigation and enforcement actions, we can expect more cases to be fined and prosecuted in Court over the coming months.
There have been a few cases of estate agents who were complicit in illegal STA activities. Besides the financial penalties imposed by URA or the Courts, the CEA will separately bring these errant agents to task by revoking their registration and debarring them for a period of time.