Source: Business Times, 6 Mar 2010

On 5 March 2010, the Housing & Development Board (HDB) announced several changes to the housing policy that govern public housing:

Curbing Speculation

Now, buyers of non-subsidised HDB resale flats must occupy their flats for at least three years before they can sell. This is up from 2.5years for buyers with HDB loans and 1 year for buyers with bank loans or no loan.

Encouraging Permanent Residents To Take Up Citizenship

HDB will now withhold $10,000 of the subsidies for a household made up of one citizen and one permanent resident (PR) when they buy a HDB flat. The board will return the withheld subsidy once the PR takes up Singapore citizenship, or when the couple has a Singapore citizen child.

Promoting Social Integration – Quota for Permanents Residents

To prevent enclaves from forming in public housing estates, there will be a new quota for non-malaysian PR families which will be set at 5 per cent of flats for HDB neighbourhoods and 8 per cent for blocks. It will apply in addition to the existing Ethnic Integration Policy (EIP) limits, which sets ratios for ethnic groups.

Supporting families to right-size

Now, besides upgraders, buyers who downsize to a smaller flats or move to a flat of same size, are now qualified to take a second concessionary loan from HDB. This will benefit families which need to right-size to smaller flats but lack sufficient proceeds from the sale of their existing flats.

Under this new policy, sellers can only keep the greater of $25,000 or half of the cash proceeds. The loan will be reduced by the remaining cash and buyer’s CPF balance in an effort to further ensure financial prudence.