HOUSING AND DEVELOPMENT BOARD FLATS (Raising of ceiling limit for buyers who are co-owners of private residential properties)

Mr Teo Chong Tee asked the Minister for National Development whether the Housing and Development Board will, in the light of the recent escalation in property prices, reconsider raising the ceiling limit of $200,000 imposed on potential buyers of flats from the HDB, who are co-owners of private residential properties and whose interest in such properties is not more than 50% but exceeds the ceiling limit of $200,000.

Mr Lim Hng Kiang (for the Minister for National Development): The objective of providing public housing is to help Singaporeans who cannot afford private housing to secure affordable housing. Eligibility conditions are imposed to ensure that only those in genuine need are allocated subsidised public housing.

HDB, however, recognises that not all who own a share of a private property are able to afford private housing. This is especially so for properties acquired by way of gift or inheritance. Special consideration is therefore given to those who have an interest in a private residential property not exceeding $200,000 in value and holding more than 50% share to buy a flat directly from HDB.

In 1989, HDB relaxed its rules to allow private property owners to buy HDB flats from the secondary market. With this relaxation, those who own a share in private properties exceeding the value of $200,000 can purchase a resale flat. In view of this, it is not necessary to review the current $200,000 limit on the value of the interest in the private properties for the purchase of flats directly from HDB.