Flats Could Face Compulsory Acquisition if Minimum Occupancy Rules are Breached
SINGAPORE: The Housing Development Board (HDB) is investigating reports of “vacant” Build-to-Order (BTO) flats, including a five-room Yishun unit reportedly left unoccupied for eight years while the owners lived in a family-owned landed property.
Consequences for Violating Occupancy Rules
HDB reiterated that all flat owners must occupy their units for at least five years under the Minimum Occupancy Period (MOP). If violations are confirmed, penalties may include:
Compulsory acquisition of the flat
Financial fines of up to S$50,000
Written warnings
Debarment from buying subsidised flats or participating in public housing schemes for five years
Flats repossessed by HDB will be sold as Sale of Balance flats to other eligible buyers.
Investigations Underway
HDB conducts thorough checks during resale processes and acts on any evidence suggesting a breach of the MOP. Investigations typically include physical inspections, interviews with relevant parties, and a review of records or valuation reports.
Recent reports highlighting “vacant” flats marketed with descriptions like “brand new unit” have prompted HDB to examine listings and engage property agents. HDB reminded agents and agencies to adhere to the Council for Estate Agencies’ (CEA) Code of Ethics, warning that false advertisements or client misconduct could result in disciplinary action.
Enforcement Actions Taken
From 2017 to November 2022, HDB has enforced penalties in 53 cases where flats were not occupied during the MOP. Of these, 21 units were compulsorily acquired. HDB conducts approximately 500 monthly inspections to enforce compliance with housing rules.
Exceptions to MOP
HDB acknowledged that special circumstances—such as financial hardship, divorce, or the death of an owner—might warrant exceptions to the MOP, granted on a case-by-case basis with HDB’s approval.
The ongoing investigations signal a robust approach to ensuring public housing serves its intended purpose of owner-occupation, safeguarding the integrity of Singapore’s housing policies.
