Friday, 1 November 2019

Can I buy private property if I own a HDB flat?

Photo by Expect Best from Pexels


Acquiring Private Property

As a flat owner or occupier, you can choose to acquire private residential properties locally or overseas if you can fulfil the eligibility conditions that apply to your flat.

Fulfilling the Minimum Occupation Period (MOP)
Before you can acquire private residential property, you have to fulfil the MOP of your flat. Find out how this is computed.


How is the MOP computed?

The MOP starts from the date you take possession of your flat (including subsequent changes to flat ownership through outright transfer) to the following dates, whichever is earlier:
  • Date on which the Option to Purchase (OTP) the private property is exercised
  • Date of the Sale and Purchase Agreement of the private property, regardless of whether it is still under construction or ready for possession
The computation excludes:
  • The period of renting out or non-occupation of the flat
  • Any infringement of the lease of the flat by the owner
Here is an overview of the MOP for the different types of flats.

Types of HDB Sold Flats
MOP
Computation of MOP
Flats bought from HDB
5 years
From date of taking possession/ transfer of your flat to the following dates, whichever is earlier:
  • Date on which the Option to Purchase of private property is exercised
  • Date of the Sale and Purchase Agreement of the private property
Resale flats bought with CPF Housing Grant
Design, Build and Sell Scheme (DBSS) flats bought from developer
Resale flats purchased without CPF Housing Grant
(for resale applications submitted on or after 30 August 2010)
Replacement flats bought from HDB under the Selective En bloc Redevelopment Scheme (SERS)
(only if you have taken possession of the replacement flat)
Whichever is earlier:
  • 7 years from date of selection of the replacement flat
  • 5 years from the effective date of possession of the replacement flat
Whichever is earlier:
  • 7 years from the date of selection to the date on which the OTP of the private property is exercised or the date of the Sale and Purchase Agreement of the private property, whichever is earlier
  •  5 years from effective date of possession/ transfer to the date on which the OTP of the private property is exercised, or the date of the Sale and Purchase Agreement of the private property, whichever is earlier
Resale flats purchased without CPF Housing Grant
(for resale applications submitted before 30 August 2010)
There is no need to satisfy the MOP before acquiring private residential property

In addition, you should note that:
  • There is no limit on the number of private properties you can acquire
  • The private residential property acquired can still be under construction or ready for possession
  • Periods of non-occupation, such as the renting out of your whole flat or any infringement of the lease of the flat, will be excluded in the MOP computation

Exercising the Option to Purchase
In order to exercise the OTP for your property, you will need to meet certain requirements.


If all the owners of your flat are Singapore Permanent Residents and you are a flat owner or essential family member who has met the MOP for your flat, you are required to:
  • Notify us of your local private residential property acquisition before you exercise the Option to Purchase (OTP) for the property
  • Sell your flat within 6 months of acquiring your completed/ uncompleted local private residential property
  • You can approach the HDB Branch managing your flat to notify us of your intention to acquire private residential properties
Source: HDB