By Julia Ng | Posted: 11
July 2012 1013 hrs
SINGAPORE: Singapore permanent residents (PRs) will
now face stricter rules when they want to sublet their HDB
flats.
With immediate effect, PRs will only be allowed to sublet their
flats for one year, upon HDB's approval.
When the one-year period expires, application to extend the
approval will be assessed on a case-by-case basis, and HDB said
approval will be granted only if there are extenuating
reasons.
Previously, PRs were allowed to sublet their flats for three
years.
The total period of subletting during the flat owners' entire
duration of the flat ownership is now capped at five years.
Previously, there was no cap.
Singapore PR flat owners are allowed to sublet their flat only
after meeting the minimum occupation period (MOP), and if they have
not sublet the flat before.
HDB said the revised rule is to reinforce the policy intent of
providing HDB flats as homes to the PRs, and to deter those who are
buying the flats for rental yield or investment.
And while HDB allows PR owners who have met the minimum occupation
period to sublet their flats, the subletting should be on a
temporary basis.
If the PR families no longer need the flats for their own
occupation, they should sell the flat instead of subletting
them.
There is no change to the subletting rules for flat owners who are
Singapore citizens.
As of April this year, HDB said 2,142 PR owners currently sublet
their flats. They form about five per cent of the total approved
sublet cases.
Key Executive Officer of ERA, Eugene Lim, said: "If you are a PR,
why are you renting out your flat? You are here to stay, to work.
If you have ability to buy another house, then you actually don't
need a public flat and you should not be owning one."
Separately, HDB is also stepping up enforcement against
unauthorised subletting.
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.
- CNA/ck/al
