The Government has released a series of anti-speculation measures to keep up with the private sales measure as to curb the rising cash-over-valuation (COV) syndrome that is making homes more unaffordable in the resale market.
Read the official release from HDB here
Raising the Minimum Occupancy Period (MOP) for the resale of non-subsidised HDB flats from 1 and 2.5 years to 3 years
The objective is to reinforce owner-occupancy.
Currently, lessees of subsidized HDB flats are subject to an MOP of 5 years and will still remain the same. On the other hand, lessees of non-subsidised HDB flats i.e. resale flats bought without CPF Housing Grant are subjected to the old MOP of
- Those who takes an HDB concessionary loan – 2.5 years
- Those who takes a bank loan or do not take a loan – 1 year
The newly revised MOP for resale of non-subsidised flats will be increased to 3 years, regardless of whether the buyer takes an HDB loan, a bank loan or no loan at all.
This new policy will apply to resale transactions where applications are received by HDB from 5th March 2010 (immediate) onwards.