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DBSS flats are built by private developers who oversee the entire project, from bidding for the land, designing the flats and overseeing the construction, to selling the flats to homeowners. They make the decision as to design, size of the flat, what finishes to use and are responsible for making sure that the development complements the neighbouring blocks.
Designing a DBSS flat
When it comes to building such a development, developers have to take a few things into consideration, such as how the interior and exterior of the flats will look like and what landscaping to use. Homeowners will be happy to know that a lot of consideration goes into building such a development. However don't expect full condo facilities like swimming pools and tennis courts because they are too expensive to maintain.
Cost of a DBSS flat
Developers price these flats at market value. You might expect a spanking new DBSS flat to cost a lot, but they are still pretty affordable compared to a private apartment. On top of that, eligible first-timer buyers can apply for a CPF Housing Grant from HDB and second-timers will not be required to pay a resale levy/premium as they will be paying market price for the flats.
Are you eligible?
If you're looking to buy a DBSS flat, take note that they are sold under the same terms and conditions as new HDB flats. Those who don't qualify are permanent residents, high-income households and others who do not qualify to buy a new flat.
Selling a DBSS flat
Flats sold under the DBSS scheme come with a 99 year lease. The sales terms are decided by the developer who will enforce what the collection and deferments of payments are, based on market practices. However, developers are responsible for following HDB's guidelines on the sale of flats under the Ethnic Integration Policy and the various priority schemes.
Priority schemes
What are some of these priority schemes you might ask? At the moment, HDB gives priority to certain groups of people when it comes to the sale of new flats. These include first-timers and those who qualify for the Married Child Priority Scheme and the Third Child Priority Scheme. These schemes are put in place to help foster family cohesion and help address the urgent needs of first-time buyers.
Developers are required to give priority to these groups. However, to avoid hindering the sale of these flats, developers will lift these quotas after the initial project launch. For more information on the schemes mentioned above, please log on to the HDB website at www.hdb.gov.sg.
Getting a loan
DBSS flat buyers can apply for a HDB concessionary loan if they meet the guidelines set out by HDB. The maximum loan quantum is 90% of the DBSS flat's purchase price, which is subject to credit assessment and full usage of the fund in the CPF Ordinary Account. Another option is to apply for a bank loan. If that's something you're considering, then you will have to obtain a Letter of Offer from the bank with your acceptance when you are invited to sign the Sale and Purchase Agreement with the developer.
Project completion
Before you can get the keys to move into your dream home, there are a few guidelines that the developer must follow. They must hand the project over to HDB for management. Subsequently, HDB will manage the housing administration functions for flats that come under the DBSS scheme. Likewise, the town councils will be responsible for managing the common areas and the maintenance of the car parks.
