SINGAPORE — In a nod to home-sharing platforms such as Airbnb, the authorities are considering a new building use category for private residences hoping to engage in short-term rentals, and a reduction in the current minimum rental timeframe of six months for short-term rentals.

Speaking in Parliament as changes were passed to the Planning Act yesterday, National Development Minister Lawrence Wong said that the authorities see a role for home-sharing platforms to continue operating in Singapore.

“So long as they’re properly regulated, so long as there is a level playing field between them and similar entities that provide short-term rentals like hotels and service apartments, I believe that the sharing economy is here to stay and we’ll allow a space in our city for such platforms to exist,” said Mr Wong.

The Urban Redevelopment Authority (URA) would provide more details “soon”, he added, without specifying a timeline.

Under existing guidelines, private residential properties are intended for long-term or permanent residence of a minimum six-month period, and should not be used for other purposes without approval from the authorities.

Renting out flats under popular platforms such as Airbnb — often used by travellers — have drawn objections from some homeowners, citing public nuisance and safety concerns.

The URA, which has been reviewing the rules on short-term rentals, received 259 complaints about short-term stays in the first half of last year alone.

In creating a new use class for private residences, Mr Wong said that new residential sites could be given prior approval to be used flexibly as short-term rental properties, and sold as such.

Existing residences will require approval for the change of use, and this would be subject to guidelines.

Mr Wong also said premises that are rented out on a daily basis ought to be regulated more like hotels.

“They should be subject to relevant licensing and conditions to ensure proper standards,” he said.

Although the changes to the Planning Act did not concern home-sharing platforms, the issue was raised by several Members of Parliament during the debate.

Dr Lee Bee Wah (Nee Soon GRC) shared her residents’ worries over tourists disturbing their rest by towing their luggage in and out of flats on their floor, while Mr Saktiandi Supaat (Bishan-Toa Payoh GRC) called on the authorities to take a clear stand on short-term home rentals.

“It is widely known that renting out homes for short-term stays is forbidden. But this is not stopping Singaporean Airbnb listings from popping up ever so frequently. It is important that the Ministry takes a clear stand on it, or it will be assumed that the regulation is a paper tiger,” said Mr Saktiandi.

Acknowledging this, Mr Wong, noting a 60 per cent rise in complaints from home-owners about breaches of this guideline over the past year, said that pending future tweaks, managing bodies of condominiums — the Management Corporation Strata Title — could do their part by passing by-laws to manage the use of common property. For instance, they could screen visitors or register their details.

Meanwhile, changes passed yesterday made it illegal for residential property to be used as short-term accommodation and dormitory accommodation without permission. Any property with more than six unrelated tenants will be outlawed — down from the current cap of eight persons, unless permission has been given.

There will also be higher penalties for offenders offering any land or building for dormitory accommodation without permission and repeat offenders carrying out unauthorised development. Such culprits could now face jail time, up from a fine of up to S$200,000. The maximum penalty for the demolition of a conserved building has been bumped up to a S$500,000 fine, a jail term, or both.

The Bill also allows URA to place conditions — such as the provision of public spaces and pedestrian connections — on developers seeking planning permission. Non-compliance would amount to an offence.