Singapore’s Housing Development Board (HDB) has introduced a limit on the number of non-citizens (NCs) it will permit to be subtenants in its properties.
In a statement published earlier today HDB said the move was to “prevent the formation of foreigner enclaves in HDB estates, and maintain the Singaporean character of our HDB heartlands.”
Currently only Singapore citizens and Permanent Residents (PRs) can buy HDB flats but foreigners can rent rooms or entire flats; there is no cap on the number of flats sublet to such foreign tenants in HDB blocks.
Less than 4 percent of HDB flats are sublet to foreigners, excluding Malaysians however the proportion increases to as much as 9 percent in some areas, or even 18 percent in some blocks, it noted.
To prevent the formation of foreigner enclaves, and with immediate effect, HDB will implement a quota to cap the number of flats that can be wholly sublet to NCs in each neighbourhood and block.
The quota will be set at 8 percent at the neighbourhood level and 11 percent at the block level. It will apply to subtenants who are Singapore PRs and foreigners, but will not apply to Malaysians who, according to the statement, can better integrate into our estates due to their cultural and historical similarities with Singaporeans.
The quota will also not apply to subletting of rooms, to reduce the impact on those who rely on subletting for additional income, especially the elderly and low-income households.
A new e-Service is available on the HDB InfoWEB for members of public to check if a flat can be sublet to NCs. The information will be updated on a monthly basis on the first day of the month, and is valid for the whole calendar month.
“We would like to remind all flat owners that unauthorised subletting of the HDB flat is a serious infringement of the lease. HDB will take firm action against errant flat owners, which can include a fine and compulsory acquisition of the flat,” the statement concluded.
Andrew Batt, International Group Editor of PropertyGuru Group,
wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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