HDB: New non-citizen quota on subletting of HDB flats to prevent foreigner enclaves

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#1
See the direction of the policies. Those hoping for wider doors for FTs to fill up their condos...think again.

New non-citizen quota on subletting of HDB flats to prevent foreigner enclaves in HDB estates

From today, HDB will introduce a quota on the subletting of whole HDB flats to non-citizen (NC) subtenants (非公民租户顶限). This is to prevent the formation of foreigner enclaves in HDB estates, and maintain the Singaporean character of our HDB heartlands.


NC Subletting Quota Framework

2Today, only Singapore Citizens and Permanent Residents can buy HDB flats. But foreigners can rent rooms or entire flats. Currently, there is no cap on the number of flats sublet to such foreign tenants in HDB blocks. Less than 4% of HDB flats are sublet to foreigners, excluding Malaysians. However, the proportion could go up to 9% in some areas, or even 18% in some blocks.


3To prevent the formation of foreigner enclaves, HDB will implement a quota to cap the number of flats that can be wholly sublet to NCs in each neighbourhood and block. The quota will be set at 8% at the neighbourhood level, and 11% at the block level. It will apply to subtenants who are Singapore Permanent Residents and foreigners, but will not apply to Malaysians who can better integrate into our estates due to their cultural and historical similarities with Singaporeans.


4The quota will also not apply to subletting of rooms, to reduce the impact on those who rely on subletting for additional income, especially the elderly and low-income households.


5This aims to maintain the Singapore character of our HDB heartlands while balancing the housing and subletting needs of citizens and foreigners in Singapore.



Implementation Details

6The new policy will apply to all flat subletting applications received by HDB with immediate effect. All flat owners who sublet their flats to one or more NCs will be subject to the NC quota.


7A new e-Service is available on the HDB InfoWEB for members of public to check if a flat can be sublet to NCs (please see Annex A (PDF 177KB) for the revised application process). The information will be updated on a monthly basis on the first day of the month, and is valid for the whole calendar month.


8Flat owners who are currently subletting their whole flat with HDB’s approval may continue to do so for the remaining approved duration. Once the existing approval expires or is terminated, any subsequent flat subletting application will be subject to the new policy.


Inclusion of NCs During Subletting Term

9Currently, the maximum period of subletting allowed per application is 3 years (if the subtenants are Singaporean/Malaysian), or 1.5 years (if they are non- Singaporean/Malaysian). Flat owners who have obtained approval to sublet their flat to Singaporean/Malaysian subtenants, and who wish to include NC subtenants subsequently, will be subject to the NC quota (please see Annex B (PDF 176KB) for the revised application process). There will be no change to the approved subletting period if the remaining approved duration is less than 1.5 years from the date of inclusion of the NC subtenant. However, if the remaining approved duration for flat subletting is more than 1.5 years, it will be reduced to 1.5 years from the date of inclusion.


Actions against Unauthorised Subletting

10We would like to remind all flat owners that unauthorised subletting of the HDB flat is a serious infringement of the lease. HDB will take firm action against errant flat owners, which can include a fine and compulsory acquisition of the flat.


Enquiries

11For enquiries, the public can call 1800 555 6370 between Mondays and Fridays, 8am to 5pm.


Date issued : 16 Jan 2014
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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#2
Just confirm City area flats is full of FTs.

The quota will be set at 8% at the neighbourhood level, and 11% at the block level.

http://services2.hdb.gov.sg/webapp/BR12A...uire.faces#

Bras Basah Complex

Please note that the results below are based on information you provided:-
Enquiring As : Flat Owner
Address : Block 233 Bain Street, Singapore 180233
Citizenship of Subtenants : At least one of the subtenants is a Non-Malaysian NC


Results:
You are not allowed to sublet your flat to non-Malaysian subtenants. However, you can sublet your flat to Singaporean or Malaysian subtenants.



Please note that the results below are based on information you provided:-
Enquiring As : Flat Owner
Address : Block 231 Bain Street, Singapore 180231
Citizenship of Subtenants : At least one of the subtenants is a Non-Malaysian NC


Results:
You are not allowed to sublet your flat to non-Malaysian subtenants. However, you can sublet your flat to Singaporean or Malaysian subtenants.



Please note that the results below are based on information you provided:-
Enquiring As : Flat Owner
Address : Block 232 Bain Street, Singapore 180232
Citizenship of Subtenants : At least one of the subtenants is a Non-Malaysian NC


Results:
You are not allowed to sublet your flat to non-Malaysian subtenants. However, you can sublet your flat to Singaporean or Malaysian subtenants.
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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#3
SINGAPORE: The Housing and Development Board (HDB) has introduced a quota on subletting of whole flats to non-citizen subtenants.

It said the move is to prevent the formation of foreigner enclaves in estates and maintain the Singaporean character of the heartlands.

HDB flat owners who lease out whole units to foreigners will be bound by the new rule, with immediate effect.

The quota on subletting of whole units to non-citizen subtenants applies to all foreigners, except Malaysians.

It is set at 8 per cent per neighbourhood and at 11 per cent per block.

Owners who wish to lease their units must make sure the quotas for both are not exceeded.

HDB said some towns are already seeing more foreigners renting whole units. These include the Central area, Clementi, Jurong West, Queenstown and Sengkang.

HDB said the new policy will apply to all flat subletting applications.

Owners currently subletting their whole flat with HDB's approval may continue to do so for the remaining approved duration.

However, if the remaining duration is more than one-and-a-half years, it will be reduced to one-and-a-half years from the date of inclusion.

The maximum period of subletting will be three years for Singaporeans and Malaysians, and one-and-a-half years for non-citizens. HDB said Malaysians are excluded as they "better integrate into our estates due to their cultural and historical similarities with Singaporeans".

A property expert said the new ruling will have some impact on the HDB rental market, but not on the HDB resale market.

PropNex CEO Mohd Ismail said: "Public housing is all subjected to a minimum occupation period, and people who buy are subjected to keep the property for a long term, and not to rent out for a rental yield. Therefore, I don't expect any impact on the resale prices.


He added that the new rule will also not have an impact on the private-property rental market.


He said: "We are talking about two different segments where the price is very different -- because for public housing, the rental is... on average S$2,000 to S$2,500, while for private properties, a smaller unit will start with a S$3,000 budget.


"Therefore the target audience of these foreigners who are renting HDB properties are not likely to or can easily cross over (to private properties), due to the gap."
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#4
with this new policy, it seems like there should be some kinda differentiation between a citizen flat owner and a pr flat owner on who should get to enjoy and participate as part of the coveted & privileged 11% in each block, isn't it?

I would prefer that pr flat owner should not be allowed to sublet wholly to non-citizen tenant
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#5
Eligibility Conditions: Flat Owners

Citizenship
Flat owners who wish to sublet their flat must be a Singapore Citizen (SC). Singapore Permanent Resident (SPR) flat owners are not allowed to sublet their flat.
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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#6
(18-01-2014, 12:04 AM)opmi Wrote: Eligibility Conditions: Flat Owners
Citizenship
Flat owners who wish to sublet their flat must be a Singapore Citizen (SC). Singapore Permanent Resident (SPR) flat owners are not allowed to sublet their flat.
if that e case, suggest more check should be conducted. have seen a number of cases where PR flat owners stay in JB and sublet wholly their flats
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#7
(18-01-2014, 07:38 AM)pianist Wrote:
(18-01-2014, 12:04 AM)opmi Wrote: Eligibility Conditions: Flat Owners
Citizenship
Flat owners who wish to sublet their flat must be a Singapore Citizen (SC). Singapore Permanent Resident (SPR) flat owners are not allowed to sublet their flat.
if that e case, suggest more check should be conducted. have seen a number of cases where PR flat owners stay in JB and sublet wholly their flats

Just give reward for tip-off. Automatically, all these illegal renting will be exposed. I believe more in incentives, rather civil service efficiency.
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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