HDB For Resale

In Singapore, any form of community housing is under the Singapore Housing and Development Board (HDB). The Housing and Development Board is responsible, according to its mission statement, to provide quality, decent and affordable housing for the low and middle class earners. However, purchasing a HDB resale takes a long while to get done (an average of two to three years), but at the end of it all, you find it to be a worthwhile bait. Also, HDB resale flats are safe to invest in Singapore because it is not possible to be conned or get into the hands of brokers.

If you intend to sell your flat, there are some qualifying standards you ought to meet before being allowed to be put under the HDB resale scheme. First and foremost, you must have exceeded the minimum occupation period of the house you want to sell. This is the period of time you must have lived in the flat. The period of time you may have sublet the flat out is not counted in this occupation period.

This rule, however, applies to large flats (two to five bedroom and executive flats), and it does not apply to one bedroom or studio apartments. Small flats can be sold on a willing buyer – willing seller basis despite the period of occupation. If the flat you want to sell was bought directly from HDB new flats or HDB resale flats using the loans given by the board, then the required duration of occupation before resale is a minimum of five years.

The minimum occupation period laws, which were of one or two years before, were revised and made more stern to keep off buyers whose intention was to take advantage of the growth of the real estate market and to resell the flats within a one or two year period. Such moves would result to uncontrollable rise of prices due to the high demand on HDB resale flats, causing inflation of the Singaporean economy.

The fact that the owner of the flat is also required to have dwelt in the flat for a number of years ensures that the quality and health standards required of the HDB flats is kept because the owner will keep the flat in a comfortable condition because of dwelling in it.

The terms of the HDB resale scheme can be a bit technical to most people, and it is therefore important to involve a real estate agent while selling a HDB flat or when looking for a HDB resale flat. If planning to buy one, the agent can advice you on the best finance scheme that will not be disadvantageous to you in the end. Also, be careful when dealing with these real estate agents.

Avoid making any payments in cash, but use methods that have solid evidence of payment. Engage an agent who has CEHA certification and who is registered under the government’s certification body. Read through all clauses carefully before signing any document. Consult with your real estate agent to evaluate your qualifications for purchasing an HDB flat.

Mindy Yong 杨雯诗

CEA Registration Number : R021232Z

Tel: (+65) 91002985
Fax: (+65) 64021826

mindy@mindyyong.com

KF Property Network Pte Ltd
CEA Licence Number : L3008430D