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Singapore MPs raise concerns over temporary relaxation of occupancy cap for larger HDBs, private properties
Concerns were raised over the possibility of increased disputes among neighbours and dis-amenity as a result of an increase in tenants.
SINGAPORE — Members of Parliament (MP) from both sides of the house raised questions in Parliament about the government's move to temporarily relax the occupancy cap for larger Housing and Development Board (HDB) flats and private residential properties.
The temporary relaxation, which begins on 22 January 2024, allows owners of four-room and larger HDB flats and private residential properties of at least 90 sq m to rent out their accommodations to up to eight unrelated persons. This is an increase from the current cap of six unrelated persons.
The questions asked by MPs include concerns over a possible increase in disputes between neighbours and community dis-amenity as a result of the increased occupancy, as well as the rationale behind relaxing the cap.
In response, Senior Minister of State for National Development Tan Kiat How told Parliament on Tuesday (9 January) that the move was necessary to help increase rental supply. He said that while public and private housing rents showed recent signs of stabilising, the ministry expects rental demand to "remain robust" over the near term.
"By increasing supply, we aim to ease the pressure in the rental market and help to moderate rents overall," said Tan.
Also read: Singapore's HDB will launch 19,600 BTO flats in 2024 and reduce number of sales exercises
Also read: Guide to using your CPF funds to pay for your HDB flat or private property in Singapore
Concerns over occupancy cap infringement, rise in neighbour disputes and dis-amenity
On the possibility of breaching the occupancy cap and a rise in neighbour disputes and community dis-amenity, Tan said that the government has put measures in place to mitigate such issues. These include the non-citizen quota of eight per cent for HDB neighbourhoods and 11 per cent for HDB blocks, and restricting non-Malaysian work permit holders from the construction, marine, and process sectors from renting HDB flats or rooms.
Tan revealed that as of November 2023, there are approximately 58,000 HDB whole flats that are rented out – about five per cent of the approximately 1 million HDB flats sold islandwide. Of these, 16 per cent are rented out to six unrelated occupants, and about 90 per cent of these occupants are non-residents, with most in their 20s to 40s.
Tan also reminded MPs that HDB regulates the rental of an HDB flat or a bedroom. According to the minister, this is done to minimise dis-amenities and "maintain the Singaporean character of our HDB estates".
Under current regulations, HDB flat owners are required to seek HDB's approval prior to renting out their flats or rooms. The regulatory body also conducts routine inspections to ensure that owners and tenants comply with the terms and conditions of approval and do not cause serious dis-amenities to the public.
On the issue of potential friction between neighbours and tenants, Tan said that HDB adopts a mediative approach and advises flat owners and tenants to be mindful of causing disturbances to others.
"Should the parties require additional mediative assistance, we will encourage them to tap on government initiatives such as the inter-agency Community Dispute Management Framework and the Community Mediation Centre, which provide facilitated mediation sessions that can help parties reach mutually acceptable solutions.
"In instances where tenants cause serious dis-amenities, HDB will take firm action by revoking the approval for the rental of the flat or bedrooms," said Tan.
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