10-Year Lock-In Seen as Boon for Genuine Home Seekers
Singapore has introduced a new Prime Location Public Housing (PLH) model, which includes a 10-year minimum occupation period (MOP) for new flats in central locations, aiming to attract those interested in long-term residency rather than quick profits. This policy, announced on Wednesday (Oct 27), also includes a subsidy clawback and restrictions on resale buyers to keep housing affordable and inclusive.
Logistics manager Jacob Phua, 40, is among those considering a unit in Rochor under the PLH model. He views the extended MOP as less daunting than the flat’s price and completion timeline. “We’re looking to stay long-term, so the MOP isn’t an issue,” Phua said, while expressing concerns over the potential high cost and long wait times.
The PLH model is designed to ensure that only those with genuine housing needs can access prime location flats, limiting resale buyers to households earning up to $14,000 monthly with at least one Singaporean. This approach is applauded by some like video producer Maverick Chua, 24, who sees it as a deterrent for property speculators but less appealing for investors like himself. Graphic artist Lim Qian Ting, 22, supports the policy, arguing it could help moderate the soaring resale prices of newer HDB flats.
However, the policy might have unintended consequences. Finance trainee Charleston Lim, 26, suggested that while the “lottery effect” of BTO flats might be curbed, it could lead to increased property values in adjacent areas like Geylang, where he recently secured a flat.
Despite the general support for the PLH model, there are criticisms regarding its impact on certain demographics, particularly singles. They are not permitted to purchase these flats, even when they reach 35 years old, which contrasts with current rules allowing singles over 35 to buy on the resale market. Mrs Goh, a 44-year-old housewife, pointed out the societal shift towards more single households, arguing that the current policy might marginalize this group, potentially affecting social cohesion and nation-building efforts.
