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Thread: HDB Revised Subletting Rules for Singapore Permanent Residents (SPRs)

  1. #1
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    Default HDB Revised Subletting Rules for Singapore Permanent Residents (SPRs)

    er... simi impact huh?

    http://www.hdb.gov.sg/Pressrelease

    Date issued : 11 Jul 2012

    HDB flats are primarily meant for owner occupation. Those who wish to sublet their flats must meet the Minimum Occupation Period (MOP) and obtain HDB’s approval before they can do so. This rule applies to both Singapore Citizens (SCs) and Singapore Permanent Residents (SPRs).

    Enforcement Actions Taken Against Unauthorised Subletting
    2) In 2011, HDB carried out 7,000 flat inspections and took action against 56 flat owners for unauthorised subletting. Of these, HDB has initiated compulsory acquisition action against 18 flat owners for blatantly infringing subletting rules. (See Annex A (PDF 22KB) for details of 3 cases where HDB has initiated compulsory acquisition actions as the flat owners have blatantly abused the public housing system and flouted HDB rules.)


    Revised Subletting Rules for Singapore Permanent Residents (SPRs)
    3) HDB reviews policies and rules regularly to keep them relevant. As part of ongoing reviews, the rules for subletting by flat owners who are SPRs will be revised with effect from 11 Jul 2012.


    Current Rule
    4) Currently, both SC and SPR flat owners are allowed to sublet their flat after meeting the MOP. The approval is granted for a maximum of 3 years per application. Owners can apply to renew the period of subletting upon the expiry of each 3-year period, with no cap on the number of renewals and the total period of subletting.


    Revised Rule
    5) Under the revised rule, SPR flat owners will be allowed to sublet their flat after meeting the MOP, if they have not sublet the flat before. The approval will be granted for 1 year only, instead of 3 years. Upon expiry of the 1-year period, the application to extend the approval will be assessed on a case-by-case basis and approval will be granted only if there are extenuating reasons. The total period of subletting during the flat owners' entire duration of the flat ownership is capped at 5 years.


    6) The revised rule is to reinforce the policy intent of providing HDB flats as homes to SPRs, and to deter those who are buying the flats for rental yield or investment. While HDB allows SPR owners who have met the MOP to sublet their flat, the subletting should be on a temporary basis. If the SPR families no longer need the flats for their own occupation, they should sell the flat instead of subletting them.


    7) There will be no change to the subletting rules for flat owners who are Singapore citizens.


    Advice to Homeowners and Tenants
    8) HDB would like to remind all flat owners to comply with its terms and conditions for subletting, such as ensuring that the number of tenants does not exceed the maximum number allowed for the various flat types and that the flats are only occupied by the listed tenants. They must also monitor their tenants to prevent nuisance or misuse of the flat, such as further subletting the flat to non-authorised occupants for short-term stays.


    9) HDB takes a serious view of any unauthorised subletting and will take stern actions against owners, including compulsory acquisition, even if it is the owner’s first infringement. This is especially for cases where the flat owners had bought the flat purely for monetary gains, with no intention of occupying it. HDB has also encountered cases where flat owners try to circumvent HDB’s rules by locking up one room and subletting the rest of the flat without physically staying in it. Such cases will be treated as unauthorised subletting of the entire flat. Subletting of flats or bedrooms for short-term stay to tourists is also not allowed.


    10) Prospective tenants are also advised to familiarise themselves with the eligibility conditions for subletting, e.g. whether the flat owner has obtained HDB's approval to sublet the flat. More information can be found on HDB’s website www.hdb.gov.sg, under the section “Living in HDB flats”.


    11) HDB flat owners who intend to rent out their flats/rooms and tenants who are renting a flat/room are advised to check CEA’s Public Register of Estate Agents and Salespersons at www.cea.gov.sg to verify their salespersons are registered with CEA before engaging their services. In addition, flat owners and tenants should not allow their salespersons to handle rental payments or rental deposits as they are prohibited from handling transaction monies for or on behalf of any party in the lease of HDB properties.


    12) Consumers should only engage salespersons who are registered with CEA. They are also advised not to respond to any real estate agency flyer, leaflet or advertisement that does not provide a salesperson’s details or registration number. Consumers should report to CEA when they encounter any person not listed on the Public Register but carrying out estate agency work illegally or handling transaction monies in the lease of HDB properties.

  2. #2
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    This is to make SCs happy ... SPRs who want to leave the country and then thinking can rent out to make $$$ will be forced to sell off their HDBs soon ... as rental is for 1y and then must renew every year at the mercy of HDB

    One stone kill two birds, make SC happy, ensure SPRs cannot profit from renting out HDB, force sell if SPRs leave country

    Unless u do it illegally ... then force sell is for sure if they discover
    Ride at your own risk !!!

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    not much impact i think... gentle and soft touch only.

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    The rule just says PR needs to get approval every year while citizens get approval every 3 years - didn't say PR cannot sublet HDB flat. So PR can still sublet HDB flat but need to get yearly approval. So this is just adding on administration hassle - unless HDB is strict is granting approval for subletting which I doubt so. I dunno why some Singaporeans so happy - obviously form over substance. In the end, PR still get same benefits.

    In the unlikely event that PRs are usually not approved to sublet their HDB flat, the impact is supply of HDB flat available for subletting decreases, and HDB rentals will be quite firm. PRs who want to buy HDB flat to rent out will have to think twice - might make more sense to invest in suburban condos with good rental yields instead.

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    The evil is in the detail of case-by-case basis

    HDB can say ... oh no .. you have got Australian PRs 3 months ago and your whole family not in SG, so you must sell your HDB

    Fair??

    and what does this mean?

    SPRs will now be allowed to sublet their flat after meeting the minimum occupation period (MOP) only if they have not sublet the flat before.
    Ride at your own risk !!!

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    I think the demand for HDB resale flat will come down, while demand for 5 years old EC could potentially go up as SPR switch from buying HDB to EC.

    This new rule could potentially give a rental boost to mass market condos as there will be a decline in supply.

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    IF I read this line carefully:

    SPRs will now be allowed to sublet their flat after meeting the minimum occupation period (MOP) only if they have not sublet the flat before


    => it means if for whatever reason e.g. the whole family migrate out to Australia to work there, within the MOP, even it was approved previously by HDB, once the 3y approval is over (when the regulation was much looser), by the time MOP is up (and now the new regulation applies), SPRS will NOT be allowed to sublet anymore ... then, you either sell or move back to SG right??
    Ride at your own risk !!!

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    The demand for EC or HDB will be minimally felt as a direct result of SPR movement lah... It is the SC that needs to be monitored but from last GE, its become a more sensitive undertaking by the govt on any change to matters related to SC and the housing sector.

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    Quote Originally Posted by phantom_opera
    IF I read this line carefully:

    SPRs will now be allowed to sublet their flat after meeting the minimum occupation period (MOP) only if they have not sublet the flat before


    => it means if for whatever reason e.g. the whole family migrate out to Australia to work there, within the MOP, even it was approved previously by HDB, once the 3y approval is over (when the regulation was much looser), by the time MOP is up (and now the new regulation applies), SPRS will NOT be allowed to sublet anymore ... then, you either sell or move back to SG right??
    this line also interesting:
    The total period of subletting during the flat owners' entire duration of the flat ownership is capped at 5 years.

    SPR flat max max can only rent out for 5 yrs
    i know liao la, SPR convert to SC, then rent out and rent out again

  10. #10
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    moral of the story, it will become very hard for SPR family to monetize their HDB resale flat for rental yield while they eat ice-cream in NZ, Australia or US
    Ride at your own risk !!!

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    So if one owner is SC and the other is SPR, which rule do they fall under?

    I can imagine the SPR who are presently renting out their HDB flat will be hurrying to sell the flat now.

    So the price of resale HDB may fall soon and the OCR condo prices may increase as these SPR may turn their attention to these condos.

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    Quote Originally Posted by taggy
    this line also interesting:
    The total period of subletting during the flat owners' entire duration of the flat ownership is capped at 5 years.

    SPR flat max max can only rent out for 5 yrs
    i know liao la, SPR convert to SC, then rent out and rent out again
    A sure way to 'get' more new SC, since the hot topic is usually surrounding FTs and PRs.

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    Quote Originally Posted by buttercarp
    So if one owner is SC and the other is SPR, which rule do they fall under?

    I can imagine the SPR who are presently renting out their HDB flat will be hurrying to sell the flat now.

    So the price of resale HDB may fall soon and the OCR condo prices may increase as these SPR may turn their attention to these condos.
    I know of many indian IT professional turn SPR for the last 6 years have been doing this, many buying n selling HDB for lumpy profits ... some getting good rental yields both in HDB and Pte pty . Gahment take so bloddy long to stop this .. much to angusih of local .. Why degrade Singapore Nang ... deserve to lose a few more GRCs

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    Quote Originally Posted by alamak
    I know of many indian IT professional turn SPR for the last 6 years have been doing this, many buying n selling HDB for lumpy profits ... some getting good rental yields both in HDB and Pte pty . Gahment take so bloddy long to stop this .. much to angusih of local .. Why degrade Singapore Nang ... deserve to lose a few more GRCs
    Few months ago, i took my condo shuttle bus and overheard the conversation between 2 indian FTs.
    One has been here for a few years and the other just settled here a few months ago. The former said he bought a unit in the condo 2 years ago and now it has gone up alot. He told the latter that he should buy instead of renting as in this country, the prices are likely to rise.
    The latter then asked the former again about the price which he bought, and then kept musing about the paper gain over a short period.

    Then again, few days ago, I chatted with another Indian FT in my block and she said she was glad she bought the unit (instead of renting it) in 2009. She had just finished a conversation with another Indian FT before entering the lift which I was in, and she mentioned that her friend should have bought a unit instead of renting it.

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    Quote Originally Posted by buttercarp
    Few months ago, i took my condo shuttle bus and overheard the conversation between 2 indian FTs.
    One has been here for a few years and the other just settled here a few months ago. The former said he bought a unit in the condo 2 years ago and now it has gone up alot. He told the latter that he should buy instead of renting as in this country, the prices are likely to rise.
    The latter then asked the former again about the price which he bought, and then kept musing about the paper gain over a short period.

    Then again, few days ago, I chatted with another Indian FT in my block and she said she was glad she bought the unit (instead of renting it) in 2009. She had just finished a conversation with another Indian FT before entering the lift which I was in, and she mentioned that her friend should have bought a unit instead of renting it.
    similar to my condo - more and more indian deep-pokect FTs bought big units here, you can see more than half of ground floor units changed hands to them. my block is the primery block in my estate, a lot of good 4 bedders are sold to rich indian...

    They are attracted by the international school UWC nearby. Indian are very good in calculation, instead of renting, they rather pay a bit more for buying.

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    Quote Originally Posted by East Lover
    similar to my condo - more and more indian deep-pokect FTs bought big units here, you can see more than half of ground floor units changed hands to them. my block is the primery block in my estate, a lot of good 4 bedders are sold to rich indian...

    They are attracted by the international school UWC nearby. Indian are very good in calculation, instead of renting, they rather pay a bit more for buying.
    Look at WaterSide Condo ... Melveille Park ...

    Melveille Park especially I heard from my bro that in early 2001/2003 many Indians bought units there for cheap cheap 350-500 K from Singaporean (one of them my sister-in-law collegeae who husband lost his job turned taxi-driver and then kenna stroke ) that are forced to sell ... Now that 's a enclave there of indians there who does'nt mix with locals unlike Singaporean Indians ... So sad ... sad ...

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    Why sad? Bcoz kena stroke or sell to Indian FT?

    .... don't confuse the issue here.

    Quote Originally Posted by alamak
    Look at WaterSide Condo ... Melveille Park ...

    Melveille Park especially I heard from my bro that in early 2001/2003 many Indians bought units there for cheap cheap 350-500 K from Singaporean (one of them my sister-in-law collegeae who husband lost his job turned taxi-driver and then kenna stroke ) that are forced to sell ... Now that 's a enclave there of indians there who does'nt mix with locals unlike Singaporean Indians ... So sad ... sad ...

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    Quote Originally Posted by howgozit
    Why sad? Bcoz kena stroke or sell to Indian FT?

    .... don't confuse the issue here.
    Both lah ?? FT Opportunitists cashing on local misfortiune . Do you think this will happen in India ??

    Do you know why expatriat incl FT luv Singapore so much ?? about that only place in this part of the world where they can enjoy and make so $$$ at expense of local who are 3 serve 2 years NS and deprive of job opportunities

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    Imho, this ruling is of no use if no checks are done regularly to see if there are errant owners who sublet illegally.

    HDB should also not grant approval to sublet easily, or else this policy will be ineffective.

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    Quote Originally Posted by East Lover
    similar to my condo - more and more indian deep-pokect FTs bought big units here, you can see more than half of ground floor units changed hands to them. my block is the primery block in my estate, a lot of good 4 bedders are sold to rich indian...

    They are attracted by the international school UWC nearby. Indian are very good in calculation, instead of renting, they rather pay a bit more for buying.

    HUAT AH!!!!!!!!!!!!

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    Quote Originally Posted by bigapplefan
    Imho, this ruling is of no use if no checks are done regularly to see if there are errant owners who sublet illegally.

    HDB should also not grant approval to sublet easily, or else this policy will be ineffective.
    I once stayed in rented 3 Rm HDB in Toa Payoh for nearly 3 years while awaiting my PC to TOP. My neighbour a PRC don't know PR or new citizen rented his 3 rm like a short term budget hotel stay .. also I heard another unit rented by a PRC who himself become a landlord subletting to another few PRC students ..., IT's crazy these SPR n Foreigners are screwing us .. n gahment turn blind eye on us.

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    Quote Originally Posted by alamak
    Both lah ?? FT Opportunitists cashing on local misfortiune . Do you think this will happen in India ??

    Do you know why expatriat incl FT luv Singapore so much ?? about that only place in this part of the world where they can enjoy and make so $$$ at expense of local who are 3 serve 2 years NS and deprive of job opportunities

    Don't mix this up. would it be worst off if cannot sell the property coz its in a dump and have to pay debt and bank come put it on the block for cheap cheap?

    Have to strike a balance.

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    Quote Originally Posted by alamak
    Both lah ?? FT Opportunitists cashing on local misfortiune . Do you think this will happen in India ??

    Do you know why expatriat incl FT luv Singapore so much ?? about that only place in this part of the world where they can enjoy and make so $$$ at expense of local who are 3 serve 2 years NS and deprive of job opportunities

    A lot of locals also make $ from this growth not just foreign. Now the government have to make adjustment to help those left behind.

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    Quote Originally Posted by qianfugui
    I once stayed in rented 3 Rm HDB in Toa Payoh for nearly 3 years while awaiting my PC to TOP. My neighbour a PRC don't know PR or new citizen rented his 3 rm like a short term budget hotel stay .. also I heard another unit rented by a PRC who himself become a landlord subletting to another few PRC students ..., IT's crazy these SPR n Foreigners are screwing us .. n gahment turn blind eye on us.

    That is against the law. There are law against tenancy w/o approval. U should call HDB and complain that fella.

    Actually to be natural. Also got Singaporean do that. just got kana caught a not is the question.

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    Quote Originally Posted by buttercarp
    So if one owner is SC and the other is SPR, which rule do they fall under?
    I am keen to know too.....

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    While I feel sorry for anybody that is forced to sell their roof over their heads due to misfortune, please consider that anybody could have capitalised from it.... be it Singaporean or foreigner.

    But because your sister-in-law's colleague happen to sell it to an Indian FT, somehow there is resentment, its part xenophobic and part racist. It's a born loser mentality....

    By the way, of course its happening in India too... as is elsewhere not less Singapore. Money rules... get over it.

    Quote Originally Posted by alamak
    Both lah ?? FT Opportunitists cashing on local misfortiune . Do you think this will happen in India ??

    Do you know why expatriat incl FT luv Singapore so much ?? about that only place in this part of the world where they can enjoy and make so $$$ at expense of local who are 3 serve 2 years NS and deprive of job opportunities

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    Quote Originally Posted by howgozit
    While I feel sorry for anybody that is forced to sell their roof over their heads due to misfortune, please consider that anybody could have capitalised from it.... be it Singaporean or foreigner.

    But because your sister-in-law's colleague happen to sell it to an Indian FT, somehow there is resentment, its part xenophobic and part racist. It's a born loser mentality....

    By the way, of course its happening in India too... as is elsewhere not less Singapore. Money rules... get over it.

    Totally agree with this.. Rather sell to the Indian PR than let the bank cannablized it. which is worst off? Its got nothing to do with PR or SC. its just a case of mis fortune which is really unfortunate.

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    Quote Originally Posted by p3nboy
    I am keen to know too.....
    Me 3....... my sis in that situation.

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    Quote Originally Posted by taggy
    this line also interesting:
    The total period of subletting during the flat owners' entire duration of the flat ownership is capped at 5 years.

    SPR flat max max can only rent out for 5 yrs
    i know liao la, SPR convert to SC, then rent out and rent out again
    Only few options left:

    1) Move back in to the HDB
    2) Sell away the HDB
    3) Convert to SC
    4) Give up PR

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    Quote Originally Posted by carbuncle
    Only few options left:

    1) Move back in to the HDB
    2) Sell away the HDB
    3) Convert to SC
    4) Give up PR

    or just leave the HDB there to rot. wait for change happen.

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