The issue of affordable housing continues to be a hot topic in Parliament, especially as the resale price index for public housing has increased for 1
The issue of affordable housing continues to be a hot topic in Parliament, especially as the resale price index for public housing has increased for 10 consecutive quarters. Recent questions raised by Workers’ Party MP Gerald Giam (Aljunied GRC) and NCMP Leong Mun Wai (Progress Singapore Party) focused on HDB flat owners who also own private property.
Mr. Giam asked for details on the number of HDB flat owners with private property, including those who do not reside in their flats. He also questioned whether the government plans to review the policy allowing HDB flat lessees to retain their flats after purchasing private property. Additionally, he inquired about measures to increase the supply of resale HDB flats and control prices.
Mr. Leong raised similar concerns, asking how many HDB flat owners also own private residential properties and rent out rooms in their flats. He also sought data on HDB owners who do not own private property but rent out one or more rooms.
Responding to these questions on Nov. 7, Minister for National Development Desmond Lee explained that Singaporean households, after meeting the Minimum Occupation Period (MOP) for their HDB flats, are allowed to purchase private property without being required to sell their HDB flat. However, these households are subject to an Additional Buyer’s Stamp Duty (ABSD) of at least 17% when purchasing their second or subsequent residential properties.
As of October 2022, around 3% of HDB flat owners also own at least one private residential property, according to Mr. Lee. This proportion has decreased by about 0.3 percentage points over the past three years. Of these owners, around 45% have rented out their entire HDB flat. Additionally, 4% of HDB flat owners rent out one or more bedrooms, a figure that has remained stable over the past three years.
For the remaining 97% of HDB flat owners who do not own private property, approximately 13% rent out their entire flat or portions of it. This proportion has also stayed steady in recent years.
Mr. Lee noted that Mr. Giam had proposed requiring HDB flat owners to sell their flats if they purchase private property, an idea that has also been raised by Mr. Yip Hon Weng. The minister assured that the government is gathering feedback through the Forward Singapore initiative and will carefully review these and other suggestions.
Mr. Giam later clarified his stance on Facebook, stating: “The purpose of my question was to discuss ways to moderate resale HDB flat prices so they are more affordable for lower- and middle-income Singaporeans. One way to achieve this is to increase the supply of resale flats by requiring buyers of private property to sell their HDB flats. This should only be applied prospectively, allowing those flats to be purchased by Singaporeans who need a home to live in.”
/TISG
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