SINGAPORE – Of 21 HDB flats acquired by the Housing Board from 2017 to November 2022 over breaches of minimum occupation period (MOP) rules, six were purchased from the board and 15 from the open market.
HDB said in December 2022 that it took enforcement action in 53 cases of owners flouting the MOP rules during that time, with the 21 units compulsorily acquired.
In a response on Friday to queries from The Straits Times, an HDB spokesman said 25 of the 53 cases involved flats purchased from HDB and 28 from the open market.
The 21 flats acquired comprised six Build-To-Order (BTO) and 15 resale units.
HDB said its flats are primarily meant for owner occupation, and owners are required to physically occupy their unit during the MOP.
“During the MOP, flat owners are not allowed to sell or rent out the whole flat or invest in a private residential property,” said the spokesman.
“The MOP restriction applies to both HDB flats bought directly from HDB and from the resale market.”
Owners who do not occupy their flats during the MOP may have their units compulsorily acquired by HDB, or may be penalised with a fine or written warning.
There was a public outcry following media reports in December 2022 about vacant BTO flats that were listed for sale on property portals.
The units appeared to be completely bare and unrenovated, with no apparent signs of having been lived in during the MOP.
HDB later said it was investigating, and National Development Minister Desmond Lee posted on Facebook that owners cannot buy a BTO flat, not move into it for five years, and then sell it as “almost brand new” on the resale market.
The HDB spokesman added that all buyers of HDB flats are required to acknowledge the rules and regulations, including those relating to the MOP, at various points in the purchase process.
“Flat owners would therefore know that they are not allowed to leave their flat vacant, or rent out the whole flat without staying in it, during the MOP,” she said.
But HDB also said owners who face genuine circumstances and cannot live in their flat during the MOP should write to the board to ask for a waiver. Appeals will be assessed on a case-by-case basis.
These circumstances include divorce or separation, death of the owner, medical reasons, or the owner being posted overseas for work for a period.
HDB said it takes the violation of MOP regulations seriously and will not hesitate to take enforcement action.
“Depending on the severity of the infringement, HDB may issue a written warning, impose a financial penalty of up to $50,000, or compulsorily acquire the flat,” said the spokesman.
Since 2017, HDB has conducted random checks on about 35,000 homes as part of its regular inspection routine, Mr Lee said in Parliament in January.
He also revealed that at least 18 property agents had been disciplined since 2017 for marketing HDB flats that breached MOP rules.
The HDB spokesman said that between January 2017 and December 2022, 258 BTO flats and 168 resale units were returned to the board.
These were mostly due to changes in the owners’ circumstances during the MOP that rendered them ineligible to own an HDB flat. These included divorce or separation, death of the owner and medical reasons.
