New HDB Resale Policy 29Aug2010

PRESS RELEASE

MORE HELP FOR FIRST-TIME HOME BUYERS

During the National Day Rally on 29 Aug 2010, PM Lee Hsien Loong

announced several measures to ensure that public housing will always remain within

the reach of Singaporeans who are buying their first home. This will be achieved by

increasing housing supply and dampening demand from those who are not in urgent

need of housing.

2. This press release provides details of the measures to:

(a) Allow households earning between $8,000 and $10,000, to buy new

DBSS flats with a $30,000 CPF Housing Grant;

(b) Increase the supply of new flats, Design, Build and Sell Scheme (DBSS)

flats, and Executive Condominiums (EC);

(c) Shorten the completion time of Build-To-Order (BTO) flats;

(d) Increase the Minimum Occupation Period (MOP) for non-subsidised flats

to 5 years; and

(e) Disallow concurrent ownership of both HDB flats and private residential

properties within the MOP.

More Housing Supply and Choices for First-Time Home Buyers

3. HDB will ramp up the supply of new flats, DBSS flats and ECs substantially to

meet the housing needs of first-time homebuyers.

4. HDB will be offering more than 16,000 new flats in 2010. If demand remains

strong, HDB is prepared to launch up to 22,000 new flats in 2011. These numbers

are substantial. Over two years, HDB will offer more new flats than the total flats in

Toa Payoh town today (35,400 flats).

5. In addition, HDB will release more land for tender in 2010 to yield an

estimated supply of 3,000 DBSS
1 flats and 4,000 ECs. In 2011, HDB will release

land sites for another 4,000 DBSS flats and 4,000 ECs, if demand is sustained. This

injection of 7,000 DBSS flats and 8,000 ECs over two years is also significant. In

comparison, 4,000 DBSS flats and 10,000 ECs have been launched for public sale

so far.

1 The DBSS was introduced in 2005 to encourage more private sector participation in public housing

development. It complements the supply of new flats by HDB and provides flat buyers an additional

housing option to meet their diverse needs and aspirations.

2

6. Currently, first-timer households with monthly income of between $8,000 and

$10,000 may buy an EC with a CPF Housing Grant of $30,000. To widen their

housing options, HDB will allow these households to buy new DBSS flats with a CPF

Housing Grant of $30,000
2. Similar to the purchase of ECs, the HDB concessionary

loan will not be available for these buyers. This revision will be applicable to DBSS

projects launched for public sale after 30 Aug 2010.

7. To help households get their new flats faster, HDB has also streamlined the

BTO processes to allow flat buyers collect keys to their new homes 6 months earlier.

Buyers of projects launched in mid-2011 onwards will generally need to wait for 2.5

years3 to collect the keys instead of the current 3 years.

HDB Flats for Owner-Occupation

8. HDB flats are meant for long-term owner-occupation. HDB will increase the

Minimum Occupation Period (MOP) to reinforce this and dampen demand from

those who are not in urgent need of housing.

9. First, the MOP of non-subsidised flats for resale and subletting of flat will be

increased from three to five years. Second, buyers of non-subsidised flats will be

disallowed from concurrently owning both an HDB flat and a private residential

property within the MOP
4. Private property owners who buy a non-subsidised HDB

flat must now dispose of their private residential property within six months from the

date of flat purchase. This will help ensure that buyers purchase HDB flats only when

they have the intent of staying in it for long term and ensure equitable treatment for

all HDB flat lessees during their MOP. Ownership of private properties by HDB

lessees will be allowed after the MOP.

2 This is subject to them meeting all other eligibility conditions on citizenship and non-ownership of

private residential property

3 Based on a typical precinct with five new blocks of 20 storeys high.

4 Currently, buyers of subsidised HDB flats are not allowed to own a private residential property within

the 5-year MOP. On the other hand, buyers of non-subsidised flats can concurrently own a private

residential property during the MOP, as long as they live in the HDB flat. Private property owners can

also buy non-subsidised flats while concurrently owning their private residential properties, provided

they live in the HDB flat during MOP. There is therefore disparity in treatment amongst the different

groups during their MOP.

3

10. The revised changes are summarised in Table 1, and will apply to resale

transactions where applications are received by HDB from 30 Aug 2010 onwards.

Table 1: Changes for Non-subsidised Flats*

Current Revised

Resale 3 years 5 years

Subletting 3 years 5 years

Investment in Private Residential

Property After Purchase of Non-

Subsidised Flat

No

Restriction

5 years

Disposal of Existing Private

Residential Property After Purchase

of Non-Subsidised Flat

Not

Applicable

Within 6 months from

Date of Purchase

Note: * Resale flat bought without CPF housing grant. The MOP will be computed from the

effective date of purchase of the non-subsidised flats.

ENQUIRIES

11. For enquiries, the public can contact HDB at the following numbers:

(a) Sales/Resale Customer Service Line : 1800 8663 066

(b) Branch Office Service Line : 1800 2255 432

Issued by: Housing & Development Board

Date: 30 Aug 2010

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Kitson Chan
Senior Marketing Director
ERA REALTY NETWORK PTE LTD
kitson_chan@yahoo.com
CEA Licence No.:
L3002382K / R024011J
+(65) 9106 3969