3-year minimum occupation

3-year minimum occupation 
By Joyce Teo, Property Correspondent

The revised policy will apply to resale transactions where applications are received by HDB from Friday. Existing HDB owners of non-subsidised flats will not be affected. -- ST PHOTO: SAMUEL HE

THE Housing Board will raise the minimum occupation period (MOP) for the resale of non-subsidised flats to three years, in a move to reinforce owner-occupation and curb speculation.

Announcing the extended period in Parliament on Friday, National Development Minister Mah Bow Tan said this will align the minimum occupation for home owners to resell and fully sublet non-subsidised flats.
Previously, those who take an HDB concessionary loan have to meet an MOP of 2.5 years, while those who take a bank loan or do not take a loan must occupy the flat for a year.

Responding to concerns raised by MPs during the debate on the National Development Ministry's budget in Parliament, Mr Mah reiterated that HDB flats are primarily meant to provide owners with a roof over their heads, and not for speculation or short-term profit. Hence, they are required to stay in their flat for a minimum period before they can sell it in the open market.

To foster owner-occupation, Mr Mah said the minimum occupation period for resale of non-subsidised flats will be increased to three years.

He said the trend of HDB owners selling their flats shortly after the minimum occupation period has been rising, although the numbers are not large. 'However, if the trend continues, buyers who genuinely need housing could be crowded out,' said Mr Mah.

The revised policy will apply to resale transactions where applications are received by HDB from Friday. Existing HDB owners of non-subsidised flats will not be affected, said the HDB.

- wong chee tat :)