No issues selling flats under EIP

Ethnic minority owners would not face any problem when they sell their HDB flats, as most HDB neighbourhoods have not reached the Ethnic Integration Policy (EIP) limit.

As of this month, 86 percent of 162 HDB neighbourhoods have not reached the EIP limits, and potential flat sellers may face restrictions in only 14 percent of neighbourhoods, said Parliamentary Secretary for National Development Mohamad Maliki Osman.

He said that the sale and acquisition of an HDB resale flat will not be restricted if the EIP limit for a certain ethnic group is not reached.

The EIP was introduced in 1989 to prevent the formation of racial enclaves and promote racial harmony in HDB estates, he said.

Resale flat transactions happen on a “willing buyer-willing seller” basis, with the price depending on the flat’s several attributes, such as age, location, prevailing market conditions and extent of renovation, he added.

He also said that HDB does not repurchase flat from lessees who have completed the MOP for resale, since they may sell the flat in the open market.

“There is a large number of resale flats transacted in the open market, averaging about 30,000 units annually, in different locations and with a wide range of flat types and prices,” said Mr. Maliki.

“Sellers who are affected by the EIP limits should have no problem finding buyers from the eligible ethnic groups as long as they are realistic in setting their asking price.”