HDB RESALE FLATS (Purchase by permanent residents for speculative purposes)

Dr Wong Kwei Cheong asked the Minister for National Development what steps are being taken by the Government to ensure that permanent residents will not buy resale Housing and Development Board flats for speculative purposes.

Dr Lee Boon Yang (for the Minister for National Development): Mr Speaker, Sir, Singapore permanent residents who purchase resale flats from the open market must abide by the following conditions. First, the flats must be owner-occupied. Second, the lessees must live in the flats for 30 months before the flats can be resold on the open market. Third, each family nucleus is only allowed to own one HDB flat. Fourth, no subletting of the entire flat is allowed.

Sir, with these safeguards, we will be able to prevent permanent residents from buying resale HDB flats for speculative purposes.

Dr Wong Kwei Cheong (Cairnhill): Sir, what if the family of the permanent resident lives in, say, Hong Kong, and he is the only one living in Singapore, will he be allowed to buy an HDB flat?

Dr Lee Boon Yang: Mr Speaker, Sir, if the Hongkonger and some of his family members are eligible by relocating in Singapore and wish to purchase a flat, we will allow them to do so. Subsequently, if only he himself wants to occupy the flat, it will also be allowed. The important point is that the applicant, the owner of the flat, must live in the flat.

Dr Wong Kwei Cheong: How would the HDB monitor the case if, by definition, part of his family is in, say, Hong Kong, and he has to travel between Singapore and Hong Kong frequently? It will be very difficult for the HDB to make sure that he is living in the flat.

Dr Lee Boon Yang: No doubt it is a difficult task to monitor and see whether the owner is actually living in his flat and for how long. But let me assure the Member that HDB will be able to monitor.