Oral Answer by Ministry of National Development on mortgagee sale of HDB flats

Jan 10, 2018

Mr Gan Thiam Poh: To ask the Minister for National Development 

(a) in the past five years, how many HDB flats have been foreclosed and put on mortgage sale/public auction by financial institutions due to defaults in payment by flat lessees;

(b) how many flat lessees have approached HDB to buy back the flats that they are unable to sell in the open market;

(c) how does HDB assist them to sell their flats in the open market; and

(d) how many flats have been sold by lessees with the sale proceeds being insufficient to return to their individual CPF accounts?

Answer:

From Jan 2013 to Nov 2017, there were 118 cases of completed mortgagee sale of HDB flats by banks.  

HDB does not buy back flats from flat owners and does not keep records of requests by flat owners who wish to sell their flats to HDB. HDB flat owners who have met the minimum occupation period may sell their flats in the open market.

Such open market sales are a mutual agreement between the respective sellers and buyers, and HDB does not intervene in the transaction.  HDB does however facilitate the sale of flats on the open market through measures such as publishing information on recent resale transactions on its website, and providing a resale checklist to guide sellers and buyers through the process.

From Jan 2013 to Nov 2017, 6% of the HDB flats sold in the open market generated insufficient proceeds for the lessees to make a full CPF refund.