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HDB flat rentals have grown significantly by three-fold in the last five years, jumping from only 12,500 in 2006 to 40,026 last year.
The notable growth is attributed to two main factors - the large number of foreigners settling in Singapore and more relaxed rules in subletting.
Under these rules, a Minimum Occupation Period (MOP) of five years is required for homeowners to lease out their new or resale units. This is regardless of whether or not the flats were bought with government grants on 30 August 2010 hereafter.
However, only those who purchased their non-subsidised flats before the said date are permitted to sublet the whole flat after a three-year MOP.
Prior to 2003, HDB flats were only allowed to be rented out after the owner had proved that he lived overseas over a certain period. In 2005, the subletting MOP was trimmed down to five years for all lessees except for those who had existing HDB loans which needed a 10-year MOP.
The MOP was further cut to three or five years in 2007, depending on whether a housing subsidy was used to acquire the flat.
HDB noted that a small portion of almost a million flats are being sublet.
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Reader Comments: (7 comments)
Subletting HDB to foreigners and non-Singaporeans is as good as depriving Singaporeans a right to affordable housing. Could the numbers be larger than reported? The number of unreported cases?
Why is subsidise flats used as a source of income for private property owner to finance their property and causes inconvenience to genuine home owners who have to face with new neighbours frequently. HDB should re-look into their relaxed rules.
Can HDB or URA release data on what % of HDB owners also co-own private properties. Share this Data by Age Group. These numbers will surprise and shock you.
Unfortunately this view is not supported by RICH and GREEDY owners with multiple properties. The system has encouraged this and it is logical for economic growth.
One of the falacies and weaknesses in current HDB policies. Indirectly subletting has played its role in spiking the prices of resale units. HDB units must never be used for investment from rental returns.
Is it fair that we allow people to sublet out their HDB to foreigners and PRs when there are Singaporeans without a roof over their heads?
Is this the way to help those that can't afford? These are the guys that had multiple hoise and renting out the HDB for additional income.