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Return HDB to its roots of building homes, not short-term assets

To discourage speculation in HDB flats, make owners pay income tax for profits made from selling subsidised HDB flats and tighten rental conditions.

The first HDB flats were built in the 1960s, in areas such as Queenstown, Chinatown, Tiong Bahru, Redhill, Rochor and MacPherson. ST PHOTO: KUA CHEE SIONG
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The Government is seeking views on how to price and allocate new public housing flats in prime areas, in a way that stays true to the values of accessibility, inclusivity and diversity in public housing.

As Second Minister for National Development Indranee Rajah wrote in a commentary, "Striking a balance in building HDB flats in prime locations", on June 10 in The Straits Times, such flats would cost more than many other Housing Board flats to build given their expensive prime locations. Such flats are likely to fetch higher gains when sold on the open market after the minimum occupation period (MOP) of five years, giving these owners windfall gains. Are there ways to claw back those subsidies or gains?

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