HDB reduces flat subletting approved period for PRs to a year with immediate effect
Posted by temasektimes on July 11, 2012
In an effort to control rampant subletting of HDB flats by Singapore PRs to make a quick buck, HDB has cut the flat subletting approved period for Permanent Residents (PR) from the current three years to just one year with immediate effect.
When the one-year period expires, the application to extend the approval will be assessed on a case-by-case basis. The total period of subletting during the flat owners’ entire duration of the flat ownership is capped at five years.
Singapore PR flat owners are allowed to sublet their flat only after meeting the minimum occupation period (MOP), and if they have not sublet the flat before.
In the past, it is a common practice for some Singapore PRs to sublet their HDB flats while living in condominiums or across the Causeway in Malaysia thereby enabling them to make a hefty profit.
Unlike other countries, Singapore allows PRs to buy public housing which has led to sky-rocketing HDB flat prices in recent years.
It is time HDB considers imposing a capital tax gain on PRs selling their HDB flats after returning to their homeland to prevent them from profiteering from the sales.