Wait-out Period Requirement for Singaporeans and PRs After Divesting Overseas Properties
Ministry of National DevelopmentSpeakers
Summary
This question concerns the reasons for imposing a wait-out period on individuals disposing of overseas properties before they are permitted to purchase HDB flats. Minister for National Development Desmond Lee explained that wait-out periods of 30 months for subsidized housing and 15 months for resale flats apply to both local and overseas property owners to ensure consistent treatment. He emphasized that these measures prioritize public housing for households with greater needs and help moderate market demand to ensure affordability. The Minister also noted exemptions for seniors right-sizing and stated that HDB exercises flexibility for individuals with urgent needs due to extenuating circumstances on a case-by-case basis. This policy framework remains under review based on overall demand and changing market conditions.
Transcript
23 Assoc Prof Jamus Jerome Lim asked the Minister for National Development what are the reasons for the imposition of a wait-out period for Singapore Citizens and Permanent Residents who have recently disposed of their overseas property, as opposed to local property, for the purposes of purchasing an HDB flat.
Mr Desmond Lee: Private property owners (PPOs) must wait out a period of 30 months after the disposal of their private residential property before they are allowed to purchase a subsidised Housing and Development Board (HDB) flat, such as a new flat from HDB or a resale flat with the Central Provident Fund (CPF) Housing Grant. This prioritises the allocation of the Government’s limited supply of public housing to households which need them more, such as first-time home buyers and those who cannot afford private housing.
From 30 September 2022, current and former PPOs must wait out 15 months from the disposal of their private property before they are allowed to buy a non-subsidised resale flat. This is a temporary measure to moderate the demand for resale flats and ensure that resale flats remain affordable for flat buyers with greater housing needs. We will review this measure depending on the overall demand and market changes.
The wait-out period applies to owners of both local and/or overseas residential properties. This ensures consistent treatment across both groups of private residential property owners.
Nevertheless, we do recognise that some current and former PPOs may have urgent needs to access public housing. We have put in place exemptions for seniors who need to right-size to supplement their retirement adequacy. For example, the 30-month wait-out period does not apply to eligible seniors and their spouses who buy 2-room flexi flats on short leases or Community Care Apartments from HDB. In addition, eligible seniors who buy a 4-room and smaller non-subsidised resale flat are also exempted from the 15-month wait-out period. These seniors only need to dispose of their private properties in Singapore or overseas, within six months from the key collection date.
Apart from seniors, we recognise that there may be other current and former PPOs who may have urgent public housing needs due to extenuating circumstances. Such PPOs may approach HDB for assistance. Regardless of whether their private residential property is located in Singapore or overseas, HDB assesses their situation on a case-by-case basis and considers exercising flexibility depending on their specific needs and circumstances.