Reasonable Asking Price for Flats in EIP Buyback Scheme
Ministry of National DevelopmentSpeakers
Summary
This question concerns the criteria for the Ethnic Integration Policy (EIP) buyback scheme and how the Housing and Development Board (HDB) determines a reasonable asking price. Ms Elysa Chen asked whether HDB’s buyback valuation includes a mandatory EIP-related discount and how the reasonableness of an owner's marketed price is calculated. Minister Chee Hong Tat explained that HDB assesses requests case-by-case, requiring owners to have first attempted selling at prices comparable to recent transactions for six months. He stated that HDB appoints professional licensed valuers to determine a fair price for the buyback based on established valuation principles. Eligible flat owners are then provided a three-month period to consider HDB’s formal offer before deciding whether to proceed with the sale.
Transcript
65 Ms Elysa Chen asked the Minister for National Development (a) whether pegging asking price to non-Ethnic Integration Policy (EIP)-constrained flats would fail to meet the reasonable asking price requirement under the EIP buyback scheme, implying a mandatory discount; (b) how the reasonableness of asking price is determined; (c) whether HDB's buyback valuation includes an EIP-related discount; and (d) if so, what is the calculation methodology and rationale for such discount.
Mr Chee Hong Tat: The Housing and Development Board (HDB) provides a range of assistance measures for flat owners who face genuine difficulties selling their flats when the Ethnic Integration Policy (EIP) quotas have been reached. This includes buying back flats from eligible EIP-constrained flat owners.
HDB will assess requests for buyback assistance on a case-by-case basis, taking into consideration the household's specific circumstances, including whether they have tried to sell the flat at a reasonable asking price for at least six months. HDB will refer to prices of recently transacted flats with similar attributes to determine if the marketed price is reasonable. All past transaction prices are published on the "Check Resale Flat Prices" e-service on the HDB InfoWEB.
For flat owners who are eligible for buyback assistance, HDB will appoint a professional licensed valuer to value the flat based on established valuation principles and make an offer for the flat at a fair price. Flat owners can take up to three months to consider HDB's buyback offer.