We uncovered opportunities to reduce the waiting time for an HDB Resale application by at least 60 days per transaction

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As Singapore sets its goals to becoming a Smart Nation, you can sense an almost fervent drive towards this target we set ourselves to achieve. Industry Transformation Maps (ITMs) for various industries we set up with the respective government agencies leading the charge.

Once such ITM which is of obvious keen interest to us is the Real Estate ITM.

On 8 March 2017, in the Budget 2017 speech by then Minister of State, Dr Koh Poh Khoon, suggested that the Housing Development Board (HDB) could significantly reduce resale transaction time by doing away with one of the HDB’s resale appointments with existing ICT technology.

Let’s take a deeper dive into what this may mean for the HDB resale process and the potential impact.

Assessment of HDB resale process

In January this year, Averspace conducted research on the HDB Resale process. Our research was focused on how technology can potentially streamline HDB Resale application processes, which will translate into time and cost efficiencies for both HDB and applicants alike.

From our findings, we uncovered opportunities to reduce the waiting time for an HDB Resale application by at least 60 days (2 months) per transaction. This would entail incorporating processes, which include but not limited to two key actions of the HDB First Appointment into a secured online envronment made available through SingPass 2FA:

1. Information Verfication

2. Signature Requirements

How this may be implemented

Information Submission and Verification

SingPass 2FA is used by our government agencies as a common login platform for specific information required for HDB and HDB Loan Eligibility (HLE) applications can be obtained:

• CPF statements and history

• IRAS Notice of Assessment income statements

• Credit Bureau Singapore (CBS)

• ICA Records – Residency Status in Singapore

This common information platform / dashboard, through a data-pull function can be achieved to provide secure and reliable information for an HLE / HDB application through the secured environment of the Singpass 2FA. With the implementation of MyInfo, gathering this information will be made a lot easier.

Also read: Averspace launches blockchain p2p house renting in Singapore

Commercial Banks in Singapore are now relying more on the personal Credit Bureau Singapore (CBS) scores and internal records to streamline the requirements for credit approvals, which reduces the need for additional paper work. The same can be achieved for HLE assessments.

Signature Requirements and Secured Digital Contracts

During the HDB Resale process, the Seller is required to issue the Option-to-Purchase (OTP) through printing out of a physical copy, filling it up and signing. HDB OTPs are serialised but there is no limit to the number of OTPs which can be requested and printed.

Through a secure channel like SingPass 2FA, the processes of digital documentation and e-signing can be enhanced and streamlined. The following steps can be achieved seamlessly through a programmed logical sequence:

1. Filling of Digital Option to Purchase by Seller

2. E-Signing / Confirmation of Option to Purchase by Seller

3. Sending / Transmitting Invite to Buyer

4. Auto-Trigger Request of HDB Valuation to HDB Approved Valuation Houses

5. Funds Transfer and Acceptance Tracking

6. Exercising / Acceptance of OTP through E-Signing / Confirmation

Documentary completion and transmission of these digital documents can be sent to HDB Approved Conveyancing Lawyers upon completion of the entire process.

By providing the above solution, HDB homeowners and homeseekers can transact seamlessly and securely through SingPass 2FA secured Digital Contracts.

The potential impact

In 2015 and 2016, HDB averaged about 20,000 resale transactions each year. Based on these numbers, through implementation of a seamless digital transactions solution, we estimate to save over 1.2 million days or approximately 3,200 years of waiting time within a year of full implementation.

Assuming that each appointment takes thirty minutes of an HDB officer’s time, we estimate over nine thousand man-hours of manpower redeployment opportunities every year.

What’s more, if these transactions are done direct (C2C) through simplified online interfaces, assuming a median price of S$400,000 per unit, and a transaction commission of 2% per HDB transacted, we are talking about more than S$150 million of transaction commissions saved per year. Something to think about.

Qualifier

Of course, the above recommendations for time and even cost savings was done without a full appreciation of the inner-workings of HDB, let alone other consideration such as our Singapore legal framework for electronic signatures, manpower displacement / reallocation, readiness of the public, etc.

However, depending on which side of the fence you are on when reading this article, there is no doubt that technology can truly offer opportunities to save time, promote cost efficiencies, as well as resource reallocation.

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About Averspace

Averspace is the first blockchain enabled real estate startup in Singapore. Averspace empowers homeowners and homeseekers to rent, buy or sell properties direct, without the need for middlemen. Our platform allows users to transact through securely signing digital contracts anywhere in the world using the Averspace mobile app. So far about a million dollars worth of rental contracts have been facilitated through the Averspace platform.

Featured Image Copyright: cepn / 123RF Stock Photo

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