On The Ground

New housing model may tame 'lottery effect' for resellers

Curbs may make prime flats less attractive but could boost values of existing ones

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A new public housing model to keep flats in prime locations affordable may well succeed in taming the "lottery effect" or excessive windfall gains when such flats are resold.

This is because conditions such as additional subsidy clawbacks and a longer minimum occupation period (MOP) may make them less attractive.

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A version of this article appeared in the print edition of The Straits Times on October 28, 2021, with the headline New housing model may tame 'lottery effect' for resellers . Subscribe