SHOULD HDB OWNERS BE ALLOWED TO
PROFIT OFF THEIR FLATS?
Jun 13, 2014
As the government gather public’s views on housing, Singaporeans re-ignited
a controversial topic in the forum pages in the media: Is it right to allow HDB
flat owners to keep their property if they have bought a private condo?
Forum writer Tan Suan Jin argued that those “who have moved on from public
housing should make the units available for those who are still struggling to
own their first HDB flat.”
Although this is appropriate when there is a shortage of units in the resale
market, there is no need for additional supply at present, given the current
context of cooled resale flat sentiments, said R'ST Research Director Ong Kah
Seng.
Another forum writer Liew Eng Leng contended that letting private property
owners get rich from renting out their HDB flats could worsen inequality.
But it is pointed out this objection only pertains to subsidized flats
acquired directly from the Housing Board, or resale flats purchased with
government grants. This does not apply to resale flats bought without any
subsidy.
The government also strictly ensures that subsidized flats are purchased by
those who need them by imposing an income ceiling.
Forum users also asked if owners should relinquish their HDB flats if they
surpass the income ceiling after they applied for the property.
The opinion is that when a family becomes well-off and exceeds the income
ceiling after getting an HDB flat, they are not obligated to sell their
property and buy a private condo so as not to make them think they are being
penalized for growing their wealth.
Notably, the government allowed 46,637 HDB flats to lease out their premises
in Q1 2014, while the proportion of HDB flat owners with private properties
remained at around four percent in the past five years.
Info courtesy - PropertyGuru.com.sg
