SINGAPORE – According to National Development Minister Desmond Lee, approximately 45% of Housing and Development Board (HDB) flat owners who also own private property do not reside in their flats, as they have chosen to rent out their entire units. As of October 2022, around 3% of HDB flat owners possess at least one private residential property, a slight decrease of 0.3 percentage points over the past three years.

Additionally, about 4% of these owners rent out one or more bedrooms in their HDB flats, with this percentage remaining stable over the same period. Among HDB flat owners who do not own private properties, approximately 13% rent out their entire flat or bedrooms.

Policy Review on HDB Flat Ownership

In response to queries from Workers’ Party MP Gerald Giam (Aljunied GRC) regarding the policy allowing HDB flat owners to retain their flats after acquiring private properties, Mr. Lee indicated that the Government would consider this suggestion alongside various ideas gathered from Singaporeans during the Forward Singapore engagement initiative.

He also pointed out that HDB flat owners who do not sell their units will incur additional buyer’s stamp duty (ABSD) of at least 17% when purchasing their second and subsequent residential properties.

Impact of Rising HDB Resale Flat Prices

Mr. Giam highlighted that HDB resale flat prices have surged by about 28% in the past two years, with over 266 flats sold for at least $1 million between January and September 2022. He expressed concern that this trend places resale flats out of reach for many Singaporeans, even with generous Government grants. He proposed that HDB owners who purchase private properties be mandated to sell their flats to allow other Singaporeans access to these units.

Reiterating the Government’s commitment to exploring all options, Mr. Lee noted that measures implemented in December 2021 and September 2022 aimed to cool the property market. He acknowledged that macroeconomic factors, such as rising interest rates and global economic uncertainty, will influence housing market dynamics.

On Million-Dollar Flats

Mr. Lee mentioned that million-dollar flats constitute about 1% of all resale transactions in the last two years, often featuring desirable attributes such as being jumbo flats, loft units, executive apartments, or maisonettes.

Considerations for HDB Rental Housing and Rent Adjustments

In a separate query from Ms. Denise Phua (Jalan Besar GRC) regarding how wage increases under the Progressive Wage Model impact HDB rental housing eligibility and rates, Minister of State for National Development Muhammad Faishal Ibrahim clarified that the $1,500 income threshold is a guideline, not a strict limit.

He assured that applicants would not be rejected solely based on income, as HDB would consider various factors, including household size, family support, and housing budget. Furthermore, he noted that HDB would not raise rents for existing tenants during their current tenancy, and any rent adjustments upon renewal would consider tenants’ circumstances to ensure affordability.

Prof. Faishal emphasized that if rents are increased, the adjustments will be lower than income increases, ensuring tenants remain financially better off as their wages grow.