Written Answer by Ministry of National Development on HDB ownership pre-requisites on HDB flat owners acquiring private properties and private property owners acquiring HDB flats
Oct 4, 2021
Assoc Prof Jamus Jerome Lim: To ask the Minister for National Development what is the justification for the asymmetry in HDB ownership allowances, where individuals who first purchase an HDB flat are allowed to subsequently purchase private property without first relinquishing ownership of the flat, whereas those who own private property are not allowed to subsequently purchase a HDB flat.
Answer:
HDB flats are meant for owner-occupation. To reinforce this principle, HDB flat owners are not allowed to concurrently own any private property during the Minimum Occupation Period (MOP) of five years for their flat. The same principle extends to private property owners who wish to buy a non-subsidised HDB flat. They will have to dispose of their private property within six months from the date of the flat purchase to meet the MOP conditions. This also serves to dampen demand for flats from buyers with no urgent housing needs, and prioritises our limited supply of HDB flats for home seekers who do not own other properties.
After fulfilling the five-year MOP, all HDB flat owners, including those who had previously owned private property, may buy private property.