TODAY ONLINE : Sub-letting lets owners unlock value in times of need

Sub-letting lets owners unlock value in times of need
05:55 AM Jul 08, 2010
Letter from Foo-Ho Yoke Ming Deputy Director (Branch Operations) Housing and Development Board
I REFER to the letter from Mr Vincent Kang, "For public, not profit" (July 1).

Mr Kang rightly pointed out that HDB flats are meant for owner-occupation, and we have various rules to uphold this. Each household can only own one HDB flat at any time. To discourage speculative flat purchases, flat owners have to fulfil a minimum occupation period (MOP) of three or five years before they can sell or sub-let.

At the same time, we recognise that a HDB flat is the single largest asset for most Singaporeans. Sub-letting allows owners to unlock some of the flat's value in times of need. The policy is applied consistently in an equitable manner - all flat owners who fulfilled their MOP and obtained an approval from HDB can sub-let their entire flat.

We thank Mr Kang for his feedback. We will continue to monitor the situation closely and refine our policy, where necessary.


For public, not profit
Jul 01, 2010
An HDB flat should be a home, not a source of income
Letter from Vincent Kang

WORKING as a real estate agent has provided me with an insight into the red-hot Housing and Development Board resale market.

Resale HDB prices have hit some amazing
highs — some Queenstown units are listed for sale at an asking price of almost
$900,000.

Yet, despite the high prices, I have seen customers who sell their HDB flats and pocket a tidy profit, but still cannot afford to make the leap to private housing.

On the other hand, there are also the cash-rich private housing owners who
willingly stump up the hefty cash-overvaluations for a resale HDB flat just so they
have a temporary place to live while they renovate their house or condominium.

After the renovation work is done, they often keep the HDB flat and rent it out
after the mandatory minimum occupation period. I have seen shocking rental rates of up to $2,000 a month for a three-room flat in a heartland neighbourhood, and up to $4,000 a month for a five-room flat in the CBD.

I wonder if these prices are signs of a truly affordable public housing market.

I would also like to ask: Why should private housing owners be allowed to rent out their HDB flats for personal gain?

If we envision a future where the majority of Singaporeans can afford public
housing, I think all public housing units should be owner-occupied.

Also, I think the Government should not allow flat owners to sub-let entire HDB
units. Perhaps an exception can be made for low-income flat owners who are undergoing
a period of financial hardship, and who need to sub-let their flat to supplement
their income.

In my opinion, public housing should be for the heartlanders who just want a roof above their heads, and not for real estate investors and speculators.