HDB upgraders as the most affected because they are not cash rich and cannot afford to pay the additional downpayment costs. To give themselves more time, some sellers then engage in verbal or written agreements to overstay in their sold flat, perhaps by renting it from the new owner as this move is illegal as under HDB rules, a buyer must live in this flat for at least 5 years before renting it out.
Other HDB sellers may choose to look for short-term rentals of one to three months, but this means they not only have to move twice but also face difficulty securing such rentals since most contracts are for at least six months and above.
He argued that since no household is allowed to own more than one HDB flat, he doesn’t see why the new rules have to apply to HDB owners.
Chairman of the Government Parliamentary Committee for National Development and Environment and West Coast GRC MP Cedric Foo agreed and told ST that HDB owners who move to other HDB flats are unlikely to be property speculators and added that it was worth raising this issue to HDB to see if there are alternatives.
Source from ST Papers
