Stricter Rules For Prs To Sublet Hdb Flats

[therat 18]

http://www.channelnewsasia.com/stories/singaporelocalnews/view/1212863/1/.html

SINGAPORE: Singapore permanent residents (PRs) who want to rent out their public flats will now face stricter subletting rules.

The Housing and Development Board (HDB) on Wednesday announced several revisions to the rules, which take immediate effect. Singapore citizen homeowners will not be affected by the changes.

Among the changes for PR flat owners is a shorter rental period of one year, subject to discretionary extensions.

When the one-year period expires, HDB said application for any extension will be assessed on a case-by-case basis, adding that approval will be granted only if there are extenuating reasons.

Under the old rules, all flat owners -- both Singaporeans and PRs -- who meet the minimum occupation period could apply to rent out their flats for a period of three years.

They could then ask for an extension, with no cap on the number of renewals, or the total period of subletting.

However, PRs can now only rent out their flats for a total period not exceeding five years.

So what do the changes mean for PR homeowners who currently rent out their flats? HDB said that those who had secured approval under the old rules will be allowed to see out the three-year agreement.

But once that expires, the homeowner will then be subjected to the new rules. This means that any requests for extensions will be given on a case-by-case basis.

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 purposes.

It stressed that while it 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.

HDB said that as of April this year, 49,190 flats are owned by Singapore PRs. Of this number, 2,142 owners currently sublet their flats, making up just five per cent of the total approved sublet cases.

However, property firm ERA said that based on its figures, more PRs are renting out their HDB flats. It said this trend might have prompted the revision of the rules.

Key Executive Officer of ERA, Eugene Lim, said the new rules are "just to put a check on the potential numbers of PR households that would actually consider renting out their flats".

"So it's basically to send a message that if you are a PR, and you are buying an HDB flat, it should be for owner occupation and not with the intention of investment."

He added: "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."

Another market watcher feels that the changes will better fit the housing needs of PRs.

Lee Sze Teck, senior manager of Research & Consultancy, Dennis Wee Group, said: "The needs of Singapore PRs may change more frequently than Singapore citizens. After all, citizens live here, whereas SPRs may only be here for work-related purposes. And if their reasons change, one year is good enough for them."

Responding to queries from Channel NewsAsia, chairperson of the Government Parliamentary Committee for National Development, Lee Bee Wah, said: "PRs have to appreciate that Singaporeans (have) worked over the years, from the time of their forefathers, to build up this country to what it is today."

She added that "as a PR, you just walk in at some stage in your life and you should therefore not be entitled to the same privileges or benefits that Singapore-born citizens enjoy."

Dr Lee said she welcomes the tighter regulations, adding that "this will also resolve some of the concerns residents have pertaining to an influx of strangers and foreigners in their neighbourhoods as a result of their neighbours subletting their flats freely."

The latest changes come two days after the Manpower Ministry tightened the criteria for work pass holders to sponsor dependents. This is in line with the overall direction to moderate the growth of Singapore's non-resident population.

HDB has also stepped up its enforcement against illegal subletting.

Last year, the authority carried out 7,000 inspections and took action against 56 flat owners.

Of these, 18 had their flats taken back for infringing rules.

Reasons included renting out their flat without fulfilling the minimum occupation period and using the flat as a lodging house for tourists.

- CNA/ck/al

[Batman 0]

Swee ah!!!

[May_dream1 14]

wow!!! now all the PRs got no choice but to sell after they go back home country.

[matrix0405 0]

This is a step in the right direction.

[therat 18]

It is long over due.

They only wake up after GE2011

[chronograph 0]

For those PRs currently owning 2 properties, one private and one HDB, usual practice is to rent out HDB, the rental collected to finance the private. With the new rule, PR can reverse the trend, stay in HDB and rent out private if they are comfortable with higher tax.

[forgotten 1]

If no mata enforces the rules, noone will take the rules seriously. Hope the authority steps up on their enforcement.

[bepgof 20]

It is long over due.

They only wake up after GE2011

Still sleeping !

PRS owners are "supposed" not allowed to rent out. For them to stay, not sublet and make money! Tio bo?

[bepgof 20]

If no mata enforces the rules, noone will take the rules seriously. Hope the authority steps up on their enforcement.

You & me are the mata le.

[kalimantan 6]

it means people like me (a by birth singaporean - who completed reservists, ran soc, ran ippt, etc) can rent out hdb easily liao.

[therat 18]

Still sleeping !

PRS owners are "supposed" not allowed to rent out. For them to stay, not sublet and make money! Tio bo?

ya still sleeping.

They need another wake up call

[eiffel76 1]

For those PRs currently owning 2 properties, one private and one HDB, usual practice is to rent out HDB, the rental collected to finance the private. With the new rule, PR can reverse the trend, stay in HDB and rent out private if they are comfortable with higher tax.

like tat, i song. i thk most pple wil agree.

[Warrior88 0]

Statistic report shows that there are 50,000 HDB houses, I would not say homes, out of 1,000,000 HDB.

So, 5% are PR HDB owners. How many are on rental, no figures.

[bepgof 20]

ya still sleeping.

They need another wake up call

Pretend sleeping only lah. "Progressive approach" is being adopted, one by one, slowly, monitor, measure, control. Too rush, all run away.