Help for HDB Owners in Financial Hardship Who Are Unable to Sell Flats Due to Ethnic Integration Policy
Ministry of National DevelopmentSpeakers
Summary
This question concerns MP Lim Biow Chuan’s inquiry about financial assistance for HDB owners in financial hardship who struggle to sell their flats due to the Ethnic Integration Policy. Second Minister for National Development Desmond Lee explained that HDB provides extensions of time for flat sales and can reduce or defer mortgage instalments to ease cash flow issues. He stated that HDB may exercise flexibility for exceptional cases and refers affected households to Social Service Offices for financial counseling and broader community support. Addressing MP Pritam Singh’s concern regarding potential price reductions, the Minister noted that selling prices are influenced by various attributes like location and amenities rather than the policy alone. He further clarified that some sellers may have initially purchased their flats at prices that were already impacted by the policy during their own acquisition.
Transcript
11 Mr Lim Biow Chuan asked the Minister for National Development whether the Government will consider some form of financial aid to HDB owners who are unable to sell their flat due to the ethnic racial quota but need to sell their flat due to financial hardship.
The Second Minister for National Development (Mr Desmond Lee) (for the Minister for National Development): Mr Speaker, HDB's experience is that most owners are able to sell their flats in the open market from eligible ethic groups, but some may need more time to do so. Hence, for those who face difficulties, HDB will, in the first instance, grant them an extension of time to market and sell their flat. Beyond that, if they face any financial issues, HDB will also look into reducing or deferring the monthly mortgage instalments temporarily to ease their cash flow. For those with exceptional circumstances, HDB will consider exercising flexibility in administering the Ethnic Integration Policy (EIP).
More generally, households in financial hardship can avail themselves to the broader suite of Government assistance schemes and community schemes, and consider other measures to put their finances on a more stable footing. So, HDB will refer them to the Social Service Office for financial counselling and for other means of financial support.
Mr Pritam Singh (Aljunied): I thank the Minister. Just a quick clarification. Beyond just an extension of time to sell the flat for the affected minority – it does not matter what race that individual or that household is classify under – has it been the Ministry's experience that these households have had to reduce the selling price of their unit vis a vis the valuation of their neighbouring units so as to secure a buyer, given the extension of time that the Ministry allows?
Mr Desmond Lee: Some of the sellers may have themselves bought the flat off the market and the flat would perhaps at that point in time, have already been impacted by the Ethnic Integration Policy. As for whether every flat is sold lower relative to the neighbours, that depends again on the attributes of the flat, the location, the height, the facing and its linkages to other amenities.