The Housing Board is investigating instances in which Build-To-Order flats posted for sale on real estate websites were reportedly kept empty throughout the five-year minimum occupancy period (MOP).
The HDB stated Thursday in response to media inquiries that 53 flat owners who did not reside in their HDB flats during the MOP were punished between 2017 and November 2022.
It was stated that 21 of these owners had their apartments seized by the HDB, while the others received fines or warnings.
The HDB's statement was released one day after The Straits Times revealed that at least three unrenovated BTO flats that appear to have never been occupied were listed for sale on property listing websites. The agents characterized the flats as "blank canvases" that had never been occupied before.
The HDB acknowledged that "empty" BTO flats are being sold on the open market.
This includes "the cases featured in recent media reports, some of which were already under investigation at the time of the media reports," the HDB stated, without specifying the cases.
The board stated that it takes violations of MOP rules seriously and would not hesitate to enforce them. In addition, the long-standing policy is intended to support public housing as a place for residents to reside.
During the MOP, which begins on the day the keys are collected, flat owners are not permitted to sell or rent out the entire unit or invest in a residential property. The limitation applies to both HDB-purchased apartments and those purchased on the secondary market.
Minister of National Development Desmond Lee stated in a Facebook post on Monday that owners cannot purchase a BTO unit, leave it vacant for five years, and then resell it as "nearly brand new."
The HDB announced on Thursday that it undertakes around 500 inspections every month to identify housing code offences, including as unlawful flat rentals. It will investigate extensively any alleged infractions, including apartments posted for sale that exhibit evidence of never having been inhabited.
The board may buy the flats of owners who violate the MOP requirement, punish them up to $50,000, or give written warnings.
According to the HDB, the Sale of Balance Flats plan will be used to sell any apartments that are compelled to be purchased under these conditions.
For five years, the owners will be prohibited from purchasing a subsidized apartment, acquiring such an apartment via transfer of ownership, or renting a public rental apartment from the HDB.
In addition, they cannot be identified as occupants on the application for such apartments. The board stated that any applications submitted previous to the debarment will similarly be canceled.
As part of the resale procedure, the HDB conducts flat inspections when owners file a resale application.
"If there are indications that the flat has not been occupied, HDB will postpone the resale application and initiate an inquiry to determine if the flat owners have failed to comply with the MOP," the document stated.
The HDB stated that it will also review the valuation reports supplied by its panel of private valuers for any indications that a unit is unoccupied.
The inquiry will involve a physical apartment inspection, a study of supporting documentation or documents proving apartment occupancy, and interviews with apartment owners, real estate agents, purchasers, and neighbors.
The HDB has indicated that it may enable homeowners whose apartments do not meet the MOP to sell their unit on a case-by-case basis, taking into consideration their particular circumstances. Financial difficulties, divorce, or the demise of the proprietors are examples of such exclusions.
The HDB stated that real estate agents are responsible for ensuring that sales of HDB apartments are legal and lawful, and that agents should warn their customers not to contravene the laws.
Additionally, licensed real estate agencies must guarantee that all advertising posted by its agents are accurate and genuine.
The HDB stated that publishing incorrect or misleading advertisements violates the Council for Estate Agencies' code of conduct and professional client care, and that disciplinary action may be taken against errant property agencies and agents.
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