Oral answer by Ministry of National Development on HDB flat lessees who concurrently own one or more private residential properties

Nov 7, 2022

Question No: 3702

Question by: Mr Gerald Giam Yean Song

*3702 Mr Gerald Giam Yean Song asked the Minister for National Development (a) how many current HDB flat lessees concurrently own one or more private residential properties; (b) of these, how many are not living in their HDB flats; (c) whether there are any plans to review the policy of allowing HDB flat lessees to keep their HDB flats after they become private property owners; and (d) if not, what other plans does the Ministry have to increase the supply of resale HDB flats and thus moderate their prices.

Answer:

Sir, Mr Gerald Giam has asked about HDB flat owners who concurrently own private properties and Mr Leong Mun Wai has asked a related question for the Parliamentary Sitting on 9 November.

Singapore Citizen households who have fulfilled the Minimum Occupation Period, or MOP, of their HDB flat may buy private residential property without selling their HDB flat. Flat owners who do not dispose of their HDB flat will be subject to Additional Buyer’s Stamp Duty, or ABSD, of at least 17% on the purchase of their second and subsequent residential property.

As at October 2022, about 3% of HDB flat owners own at least one private residential property. This proportion has fallen by about 0.3 percentage points in the last three years. Of these, about 45% are not living in their HDB flats, as they have rented out their whole flat. Another 4% of HDB flat owners are renting out one or more bedrooms of their HDB flat. These proportions have stayed stable in the last three years.

Among the remaining 97% of the flat owners who do not own private residential property, about 13% are renting out their whole flat or bedrooms within their flat. This proportion has also stayed stable in the last three years.

We note that Mr Gerald Giam is asking the Government to consider requiring HDB flat owners to sell their HDB flats, or dispose their HDB flats, if they buy private property. Mr Yip Hon Weng had also called for this last month. We have been gathering views from Singaporeans as part of Forward Singapore, particularly around the social compact on public housing, and will study these as well as other views and ideas carefully.