Minister for National Development Mah Bow Tan said yesterday that flat owners will be subjected to spot checks both locally and abroad to see if they are telling the truth about private property ownership in Singapore or overseas.
HDB flat buyers are required to declare any interest or ownership in private property located locally or abroad at the point of purchase, said Mr. Mah. Those found guilty of false declarations will be fined as much as S$5,000 or face imprisonment for up to six months, or both.
If the false declaration is discovered prior to the completion of the flat purchase, HDB can cancel the application; otherwise, it can compulsorily acquire the flat.
HDB recently announced that those who purchase an HDB resale flat on or after August 30 must sell their private property located locally or abroad within six months of acquisition.
“For practical reasons, HDB adopts different approaches to check on private-property ownership in different countries. I am unable to disclose the details to avoid hampering HDB’s enforcement work,” said. Mr. Mah.
He also said that the real estate market is showing “signs of greater stability”.
Based on flash estimates, private home prices have seen a 3.1 percent increase in the third quarter, compared to 5.3 percent in the earlier period.
Sales of HDB resale flats slid by 25 percent in September compared to the previous month.
Most private home buyers are Singaporeans, while foreigners and permanent residents accounted for 12 percent and 13 percent of home sales respectively in Q2, said Mr. Mah.