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10-year MOP, no renting out of whole unit among new measures for public housing in prime locations

·5-min read

Following the report published last week on Singaporeans’ views on public housing in prime locations, MND and HDB announced details of the new Prime Location Public Housing (PLH) model on 27 October. As the name suggests, this will apply to new public housing built in prime and central locations, such as the city centre and the Greater Southern Waterfront. Where feasible, public rental flats will be built at these sites as well.

First project under the PLH to be offered in the November 2021 BTO

The first project to be launched under the PLH model will be at Rochor, along Kelantan Road and Weld Road in Central Area. Comprising 960 units of 3-room and 4-room flats, the project will be offered in the upcoming November 2021 BTO sales launch.

The project will also include 40 units of 2-room rental flats.

Rochor BTO
Rochor BTO

(Check out our review of the Rochor BTO here.)

To keep public housing affordable, accessible and inclusive, MND and HDB have introduced several conditions for these flats under the PLH model.

Subsidy clawback

Given the additional subsidies enjoyed when owners buy these prime location flats from HDB, they will have to return a portion of the subsidy should they sell their flat in the resale market.

The subsidy recovery percentage will be equivalent to the initial additional subsidy provided. HDB will announce more details about this at next month’s BTO launch.

Reduced quota for Married Child Priority Scheme

The eligibility criteria to buy a flat under the PLH will be the same as that of BTO.

However, a lower quota will be set aside for those applying under the Married Child Priority Scheme (MCPS). The quota will be adjusted depending on the location of the projects.

The scheme allows priority for those who wish to live with or close to their parents or married child. Currently, the quota is set at 30% for first-timers applying for a BTO or SBF flat.

Stricter eligibility criteria, including income ceiling, for buyers of PLH resale flats

Unlike typical HDB resale flats, there will be more restrictions for buyers of these PLH flats in the resale market. These restrictions will apply until around half of the 99-year lease of the flats, before the government considers a review.

Conditions

PLH flats bought from HDB and resale market

Typical HDB resale flats

Citizenship

At least one applicant is Singapore citizen (SC)

At least one applicant is SC or PR

Households must comprise at least one SC and one PR

Households can also comprise of only PRs

Family nucleus

Must have an eligible family nucleus eg. married couple

Must have an eligible family nucleus. If single, must be at least 35 years old

Income ceiling

S$14,000 (or S$21,000 if purchasing with extended or multi-generation family)

No income ceiling

Private property ownership

Must not own or have an interest in a private property and have not disposed of any in the last 30 months

Must dispose of private property within six months of buying resale flat

10-year MOP

To prevent speculative demand, the Minimum Occupation Period (MOP) for these flats will be 10 years instead of the usual five years, before owners can sell them in the open market or buy a private residential property.

No renting out of the whole unit

Owners will also be prohibited from renting out the whole flat, even after the 10-year MOP has ended. Nevertheless, they can still rent out their spare bedrooms.

What do you think about the new Prime Location Public Housing (PLH) model? Let us know in the comments section below or on our Facebook post.

If you found this article helpful, 99.co recommends MND report reveals a summary of Singaporeans’ views on public housing in prime locations and MND survey reveals how the government could regulate prime location HDB flats.

Looking for a property? Find the home of your dreams today on Singapore’s fastest-growing property portal 99.co! If you would like to estimate the potential value of your property, check out 99.co’s Property Value Tool for free. Meanwhile, if you have an interesting property-related story to share with us, drop us a message here — and we’ll review it and get back to you.

Frequently asked questions

Which projects fall under the Prime Location Public Housing (PLH) model?

According to MND and HDB, these include projects located in prime, central locations such as the city centre and the Greater Southern Waterfront. The first project under this new model is located in Rochor in Central Area.

What are the eligibility criteria to buy a PLH flat?

The conditions are similar to buying a BTO. For instance, one of the applicants must at least be a Singaporean and form a family nucleus. The income ceiling will be S$14,000. These are also applicable for those buying these flats when they’re put on the resale market.

What’s the difference between a typical BTO flat and a PLH flat?

One main difference is that a PLH flat has a 10-year Minimum Occupation Period (MOP), as opposed to the typical five-year MOP. Owners also cannot rent out the whole unit after the end of the MOP. There will also be a reduced quota for the Married Child Priority Scheme for those applying for a PLH flat, and a subsidy clawback for those selling the unit on the resale market.

The post 10-year MOP, no renting out of whole unit among new measures for public housing in prime locations appeared first on 99.co.

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