THE TEMASEK TIMES

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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.

 

14 Responses to “HDB reduces flat subletting approved period for PRs to a year with immediate effect”

  1. Invictus said

    Another clear sign of how near sighted our scholar policy-makers are ? Very good at imposing harsh policies on Singaporeans but it takes them this long to figure out how PRs are profiteering from loopholes.
    My question is, how are you a PERMANENT RESIDENT of Singapore, if you are residing in JB and not even in Singapore. Can’t the various government agencies ie ICA and HDB work together to weed this out. Sigh !!

    • ANGRY Bird said

      HDB flats are only for Singapore Citizens. Period.
      Damn parrot KhawBW ought to be kicked out in 2016! Useless!

  2. Citizen said

    PR should not even be allowed to purchase HDB flats in the first place. Why are they allowing them to sublet for one year and extension can be approved on case by case? They should NOT be allowed to sublet AT ALL.

    • CY said

      If you are referring to PR households then I understand your point. Your comment is not fair to SINGAPOREANS who are married to PRs. These will be considered as SC/SC households (Singapore Citizen/Singapore Citizen) once these couples have children.

  3. ilovesex said

    Fail. Why are PRs even allowed to buy HDB is funny itself.

  4. Eugene said

    They know! They know ! But HDB also want to make fast and long term profit too,

  5. Singapore Talent said

    Notice HDB is more interested in building and selling? No one has the charter or interest to prevent abuse la

  6. Lim said

    It is only when HDB flats subletting and short-term hotel stays became rampant and there was huge outcry that they grudgingly amended the rules. Otherwise we citizens are priced out of govt flats while foreigners in the guise of PRs are milking the cash cows (pun intended) for all they are worth – sub-letting for profit for eternity with automatic 3-year approvals courtesy of HDb until this 5 year cap. The govt is too pro-foreigner and now trying to make only token gestures (most likely with an eye on 2016) to repair a few gaping holes in their unfair policies against citizens e.g. NS, school admission, HDb flats, etc It is definitely too late and too little. They deserve it come 2016 if a few more GRCs go the way of opposition as citizens make their sufferings count.

  7. P Koh said

    Can the Authorities throw some light on what the effects would be with this new ruling.? When the PRs could only sublet their flat with the approval of HDB after the one year ruling kicks into play, will this discourage new PRs to buy flats if they have insufficient income to finance the purchase.? On the other hand when those PRs who have difficulty in renting flats due to this new restriction, would they be forced to buy flats which again will cut down the supply of flats to Singaporeans and thus push up the prices further.? This is food for thought

  8. HDB Business said

    5000 flats rented out by PRs. that is like more than ONE ENTIRE BTO RELEASE exercise. 5000 ready flats, ready to move in anytime.

    100,000 more flats rented out by Singaporeans to do investment. well and good, it benefits citizens. but there are OTHER citizens waiting to START A LIFE in an HDB flat.

    HDB is encouraging LIVING in flats? or DOING BUSINESS in them?

    100,000 WHOLE flats in the HDB market alone. and MANY MORE rooms sublet which do not require approval and does not fall under this statistical radar.

    that is more than a whopping TWENTY BTO EXERCISES.

  9. bb said

    The negative effect is that the PRs may suddenly apply to become sg citizens in order to apply for HDB flats directly – then resulting HDB will be unable to cope with the demand

  10. bb said

    HDB should show figures on how PRs are approved for subletting

    old statistics here

    http://www.asiaone.com/Business/My%2BMoney/Property/Story/A1Story20070815-22022.html

  11. hachoo said

    its about time !!

  12. solaris8899 said

    what is hdb mission?

    creating a affordable housing for all singaporean or creating a affordable housing for all singaporean and PRs?

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