At the National Day Rally (NDR) on Sunday (20 Aug), Prime Minister Lee Hsien Loong said new Build-To-Order (BTO) flats will soon be classified as “Standard”, “Plus” and “Prime”.
While the attributes of Standard and Prime flats are known, homebuyers might want to find out more about the new Plus model.
Minister for National Development Desmond Lee has since revealed more details, including that buyers of Plus flats won’t be allowed to rent them out at any time.
Source: Lee Hsien Loong on Facebook
Also, if they’re put on the resale market, they can be resold to Singaporeans only.
Mr Lee disclosed this during a post-NDR engagement session on Monday (21 Aug), reported Channel NewsAsia (CNA).
As previously reported, Plus flats will be in choicer locations and come with more subsidies but tighter resale conditions.
One of these conditions is a Minimum Occupation Period (MOP) of 10 years — in contrast to five years for Standard flats — before they can be put on the resale market.
Speaking at the Lifelong Learning Institute, the minister elaborated on these conditions.
Currently, there’s no income ceiling to buy a resale flat except for Prime flats that are too new to be resold.
This will change for Plus flats — buyers must have a household income of S$14,000 or less a month to buy them, regardless of whether they’re families or singles.
As a comparison, the current BTO income ceiling for married couples is S$14,000, and that for singles is S$7,000.
80% of Singaporean households earn S$14,000 or less a month, noted Mr Lee.
Secondly, private property owners buying a Plus flat — or Prime flat — on the resale market will have to wait 30 months.
After the 30-month wait-out period, they will be allowed to buy these flats on the open market.
Lastly, at least one buyer must be Singaporean to buy Plus and Prime flats on the resale market.
These conditions are aimed at moderating demand and keeping these homes affordable and inclusive over time, Mr Lee said.
Source: Housing & Development Board on Facebook
They will also apply to subsequent buyers so that the flats will remain affordable even after being sold more than once.
As for subsidies, while owners of Plus flats will get more subsidies than Standard flats, they will also be eligible to recover their subsidy upon reselling the flat.
This recovery amount will accordingly be lower than that of Prime flats, because the subsidy will be lower, Mr Lee said.
Of course, the subsidy recovery only applies to the first owners of the flat.
Finally, the Government aims to thwart buyers intending to “flip properties” for quick gains or rent them out for long-term yields.
Thus, Mr Lee said owners of Plus flats — like Prime flats — will be banned from renting out their flats “at any time”.
This restriction applies even after the 10-year MOP is over.
It will make sure that the flats are occupied by their actual owners, he added.
That’s because public housing should primarily be for owner-occupation and not speculative investment, he noted.
What do you think about the new Plus model? Will it better fulfil Singaporeans’ housing needs? Do share you view with us.
Have news you must share? Get in touch with us via email at news@mustsharenews.com.
Featured image adapted from Housing & Development Board on Facebook.
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