TODAY ONLINE : Four HDB flats confiscated

Four HDB flats confiscated

05:55 AM Jul 29, 2010

by Esther Ng

SINGAPORE - One homeowner had sublet her flat illegally to a religious group while she stayed with her family. Another had used his flat as collateral and allowed his moneylender to sublet the flat to repay his loan.

Both did not resume occupation in their flats even though they had been warned by the Housing and Development Board (HDB). Both were among four owners who had their flats confiscated between January and May - compared to four cases over the last two years - while six others had to pay a penalty of $4,200 to $14,400.

The latest figures are the first since the HDB set up a hotline in March for people to complain about homeowners illegally subletting their flats - and 740 people have called since.

However, the bulk of cases detected have come from stepped-up routine inspections - 1,860 to be exact.

In the first five months of the year, a record 2,600 checks were conducted - a four-fold increase from 690 inspections carried out from August to December last year.

Real estate agents told MediaCorp that unauthorised subletting is widespread.

"Some rent the whole unit, as they had taken out bank loans and their Central Provident Fund contribution is not enough to pay for their mortgage," said property agent Azhar Johar. Others stay with their parents or live in their private property to cash in on the red-hot rental market.

"Demand from foreigners and limited flat supply have pushed up HDB rentals even in Woodlands," said real estate agent Liz Choo. "A few years ago, you could get a four-room flat there for $1,300. Now, the minimum is $1,600."

There also have been cases of flat owners who try to circumvent HDB's rules by locking up one room and subletting the rest of the flat without physically staying in the flat.

Such cases will be treated as unauthorised subletting of flats if home owners did not meet the minimum occupation period and did not seek HDB's approval to sublet their flats, said HDB. They must also register their sub-tenants if they sublet rooms.

Members of the public are encouraged to call HDB's hotline on 1800-555-6370 to report any suspected cases of unauthorised subletting.

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