Change in minimum occupation period criteria for Sers replacement flats

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Change in minimum occupation period criteria for Sers replacement flats

Jun 20, 2022

Buyers of replacement Housing Board (HDB) flats under the Selective En bloc Redevelopment Scheme (Sers) will now only be able to sell their units five years from the date of collecting the keys, starting with the Ang Mo Kio Sers site.

Previously, they could sell either seven years from the date of selection of the flat or five years from the date of collection.

This meant that some owners were able to sell their units even before they have lived in it for five years.

According to HDB’s website, the new criteria will kick in for Sers sites announced on or after April 7, the date that four Ang Mo Kio HDB blocks were picked for Sers.

The change in minimum occupation period (MOP) criteria means that owners of Sers replacement flats are subject to the same five-year MOP as those who buy a flat from the HDB and the resale market.

MOP is the time period that owners are required to live in their flats before they can sell on the open market.

The revised MOP comes after a five-room replacement flat - for a Redhill Close Sers project in 2011 - at Block 96A Henderson Road sold for an all-time record of $1.4 million last month.

It had 96 years and one month left on its 99-year lease.

The Straits Times has contacted HDB for comments.

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HDB adjusts minimum occupation period criteria for selling SERS replacement flats

June 17, 2022

Buyers of replacement HDB flats under the Selective En bloc Redevelopment Scheme (SERS) will now be able to sell their unit only after completing a minimum occupation period (MOP) of five years from the date of collecting the keys for the flat, following a change in criteria by HDB.

Before this, buyers could sell their replacement flats either seven years from the date of selection or five years from the date of key collection - whichever earlier. That meant that some owners could sell their units even before they lived in them for five years.

The new ruling will apply to SERS sites announced on or after April 7 - the same date that HDB had identified four Ang Mo Kio blocks for the scheme. Owners of the 606 impacted units across the four blocks are being offered new replacement flats that will be built at Ang Mo Kio Drive. Construction on the new flats will commence in 3Q2023, with expected completion by 3Q2027.

The new criteria will also impact the replacement flats offered to owners of nine HDB blocks at Marsiling Crescent and Marsiling Lane that will be acquired under SERS as part of the redevelopment and expansion of Woodlands Checkpoint, which was announced late last month.

The change in criteria means that all HDB buyers will now have the same MOP of five years from the date of key collection, regardless of whether they opt for a BTO (build to order), SBF (sale of balance flats), SERS, or resale flat, notes Lee Sze Teck, senior director (research) at Huttons Asia.

While there is no public data on the number of flats that have been sold before the five-year MOP, Lee views the number of such transactions is “likely to be insignificant” as they are subject to HDB’s approval to prevent any abuse of rules.

In any case, while the new criteria will prevent owners of future SERS replacement flats from cashing out earlier, Lee does not believe it will have a significant impact on the prices of replacement flats on the resale market.

https://www.edgeprop.sg/property-news/hdb-adjusts-minimum-occupation-period-criteria-selling-sers-replacement-flats