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Minister for National Development Desmond Lee said in parliament today (Nov. 7) that as of October 2022 around 3 per cent of Housing and Development Board (HDB) flat owners own at least one private residential property.

Of that number, 45 per cent do not live in their HDB flat, choosing to rent out the entire unit instead.

4% rent out one or more bedrooms in their HDB flat

Lee was responding to questions by Member of Parliament (MP) for Aljunied Group Representation Constituency (GRC) Gerald Giam and Non Constituency Member of Parliament (NCMP) Leong Mun Wai on the number of HDB flat owners who own one or more private residential properties and were not living in their flats.

Lee said that the number of people who own both a HDB flat and at least one private property has fallen by about 0.3 percentage points in the last three years.

Of that number, those who rent out one or more bedrooms in their HDB flat is at 4 per cent and has remained stable in the last three years.

For the 97 per cent of flat owners who do not own private residential property, about 13 per cent rent out one or more bedrooms, which has also remained stable over the same time period, Lee said.

HDB owners who fulfilled flat's MOP can buy private property

Giam suggested to the government that private residential property owners be required to sell or dispose of their HDB flats. He also asked Lee if there are plans to review the policy of allowing HDB owners to keep their HDB flats after they own private property.

Lee responded, saying that HDB owners who have fulfilled their HDB flat's minimum occupation period can buy private residential properties without having to sell or dispose of their HDB flat.

Those who do so will be subject to an additional buyer’s stamp duty of at least 17 per cent on the purchase of their second and subsequent residential property.

Nevertheless, Lee said that the government will take in Giam's suggestion, as well as study the views that have been gathered from Singaporeans as part of the Forward Singapore exercise, Lee said.

Government will ensure property market remains in line with economic fundamentals

Giam mentioned that resale prices have risen by about 28 per cent in the last two years, further noting that over 266 flats were sold for more than S$1 million between January and September in 2022.

This has resulted in many Singaporeans to be unable to afford resale flats despite "generous government grants".

Giam suggested to increase the supply of resale flats so as to moderate their prices, and asked Lee if the government plans to do so.

Lee acknowledged that the incidents where flats were transacted for over S$1 million have affected the resale market, and these "headline grabbing prices" have caused concern and "fuelled market psychology" resulting in people to worry and enter the housing market.

However, he noted that that such million-dollar flats tend to have "good attributes", such as jumbo flats and maisonettes, and only make up about 1 per cent of all resale transactions over the last two years.

Lee added that the government has also taken measures in December 2021 and September 2022 to cool Singapore's property market and moderate demand.

"We are also mindful of macroeconomic conditions going forward, rising interest rates, uncertainty in the economic climate globally, people being more prudent in their home purchases. So those will also have an impact and we need to monitor the market carefully."

On that note, Lee said the government will "act decisively but carefully to ensure that the property market remains in line with economic fundamentals."

Top image by Joshua Lee