What is HDB’s prime location social housing model? Will the Pinnacle @ Duxton be affected ?, Housing News & Top Stories
SINGAPORE – Future Housing Board (HDB) apartments in some locations will be subject to more stringent buying and selling conditions as part of a new prime public housing (PLH) model.
The PLH model aims to maintain future HDB apartments in prime, affordable and inclusive central locations.
“If left to private market forces, it is likely that these attractive locations would likely turn into very expensive and exclusive locations, with accommodations that only the well-to-do can afford,” National Development Minister Desmond Lee said on Tuesday. (October 26).
A record number of HDB apartments have changed hands for at least $ 1 million this year, with The Pinnacle @ Duxton arguably the “poster boy” for such deals, although these units are not exclusively located in the area. central.
Mr. Lee said the PLH model was developed after almost a year of public engagement with more than 7,500 Singaporeans.
“We recognize that we are acting against very powerful social and economic forces that lead to stratification and segregation in every society, especially in prosperous cities,” he said, adding that the model is necessary to achieve results. fair.
Here are the main features of the PLH model and the considerations behind them, according to Lee.
Q: Where will this new PLH model apply? Will The Pinnacle @ Duxton be affected?
A: The new PLH model will be implemented for social housing in prime central locations such as downtown and the Greater Southern Waterfront area.
It will only apply to future projects and not retrospectively to existing public housing, so The Pinnacle @ Duxton will not be affected.
Q: How will these top-notch HDB apartments be made affordable when they are first launched during the Make-To-Order exercises?
A: HDB provides additional grants, in addition to existing grants provided for other built-to-order apartments (BTOs), to ensure that these PLH model apartments are launched at affordable prices.
However, the concern is whether this would lead to excessive lottery effect and windfall winnings when homeowners sell their apartments on the open market.
To address these concerns, HDB will recoup the additional subsidy as a percentage of the resale price, also known as “subsidy clawback”, when the owner sells the unit. Subsidy recovery only applies to the first resale and not to subsequent resale transactions.
The exact percentage of subsidy clawback will be announced next month, when the Rochor BTO project is launched, the first site under the PLH model. It may be adjusted for other projects in the future depending on market conditions and the amount of subsidies granted by HDB.
Q: Will I always have priority for apartments in prime locations if I am going to live near my parents?
A: For some projects in prime locations, HDB may reduce the proportion of apartments reserved for households that want to be near their parents or children as part of the priority program for married children.
While many Singaporeans who participated in the consultation suggested removing these priority programs altogether to ensure equal opportunities for all applicants, HDB said it was important to facilitate mutual care and support between generations. family.
Reducing the quota for these priority programs instead of removing them altogether strikes a fairer balance, Lee said.
Quota adjustments will depend on the location and specific attributes of each project.
Q: How will these premier HDB apartments remain affordable in the resale market?
A: Those wishing to purchase a top-notch HDB apartment in the resale market must meet the eligibility requirements for purchasing new apartments directly from HDB.
These include having at least one Singapore citizen applicant and a monthly household income not exceeding $ 14,000. Buyers must also not own or have an interest in, or dispose of, private property within the past 30 months.
These resale restrictions will be in place for at least half of each premier apartment’s 99-year occupation, before HDB considers whether to revisit them.
Q: How will HDB ensure that top notch apartments will remain primarily for Singaporeans who want accommodation for themselves and do not benefit from the lottery effect of their resale?
A: The minimum occupancy period (MOP) will be extended to 10 years, compared to five years currently for all other HDB apartments.
The owners of these apartments will not be allowed to rent their entire apartment at any time, even after the end of the MOP. They will only be allowed to rent guest rooms.
Both conditions apply to those who buy directly from HDB as well as to subsequent buyers in the resale market.