MANDATORY PERIOD FOR DOWNGRADING OF FLATS

Column No : 3243

MANDATORY PERIOD FOR DOWNGRADING OF FLATS

21.

Mr Ahmad Mohd Magad asked the Minister for National Development if he will consider reviewing the mandatory waiting period for current HDB dwellers who wish to downgrade their flats, given the current economic situation.

Mr Mah Bow Tan: Public housing in Singapore is heavily subsidised for long-term owner occupation. HDB flat owners who wish to sell their flat in the open market can do so after they have met the minimum occupation period (MOP) of their flat. The MOP requirement ensures that HDB flats are not purchased for speculation and prevents a premature realisation of the housing subsidy by the flat-owner.

Nevertheless, we recognise that there may be flat owners who are in severe financial hardship and have no choice but to sell their flats and downgrade to a smaller flat. HDB has waived, and will continue to waive, the MOP requirement for flat owners in genuine financial hardship on a case-by-case basis, based on individual merit.