HDB policy on singles: Singaporean vs Permanent Resident

Leong Sze Hian

Why are Permanent Residents (PRs) who are single buying HDB resale flats like nobody’s business?

Singaporeans who are single and below age 35 are not allowed to buy HDB resale flats unless they are orphans.

PRs sibings who are single and below 35, however, are allowed to purchase these flats.

Why does our public housing policy favour PRs over Singaporeans? Is it not discriminatory and unfair?

Has any Members of Parliament ever raised this issue vigorously in Parliament?

The mission of the HDB should be to help Singaporeans own homes. So, how can single PRs be given priority over Singaporeans?

If you are a below-35 PR in Singapore, wouldn’t you try to arrange for one of your siblings to come to work in Singapore too, and apply for permanent residency?

Whilst there are no official statistics on how many HDB flats are owned by single PRs, anecdoctal evidence seems to suggest that an increasing number of single PRs may be buying them.

As there are also no official statistics on how many single PR siblings are in Singapore, it may probably not be too far an estimate to say that there may be tens of thousands in total.

When one of the PR siblings leave Singapore, after a resale flat has been purchased, are they still allowed to keep the flat? I believe the answer is yes, at least for a few years.

The cheapest HDB 3-room flat (2 bed-rooms) that a single Singaporean or PR can rent is about S$1,500. With housing loan interest rates at historical lows in Singapore, the monthly repayment for a $220,000 HDB bank loan is only just over $800.

So, is it any wonder why it may make more sense for single PR siblings to buy a resale HDB flat, instead of renting one?

3, 4 and 5-room HDB resale flats are going for around $280,000, $370,000 and $440,000 (median sale prices), respectively, with a typical down-payment of 20 per cent of the purchase price.

PR siblings can sell their resale HDB flats after a Minimum Occupation Period of 5 years. So, from a financial perspective, it may make more sense to buy than to rent, and possibly reap the capital gains as well after 5 years.

The increasing “headache” for some Singaporeans may be that they cannot afford the Cash-Over-Valuation (COV) on a resale flat.

Since PR siblings when they first come to Singapore typically do not have permanent residency status yet, they do not need to contribute to CPF. Thus, they generally may have more cash to pay for COV because their take-home pay is higher without CPF contributions relative to Singaporeans, until such time that they become PRs and qualify to buy HDB resale flats.

Even when they become PRs, the first 2 years’ CPF contribution is lower than for citizens.

2 PR siblings may generally just need to stay in one bedroom.

So, some may rent out rooms immediately after they buy a flat. [PRs can rent out rooms immediately but not the entire flat.] The PR sibling owners can stay in 1 room themselves, and rent the rest of the rooms out. Under HDB rules, you are allowed to have up to 9 persons staying in say a 5-room (4 bed-room flat). So one can rent out to 7 persons, at say $150 per person.

Some PR siblings may also be accustomed to sharing a flat before they buy their resale flat.

So, they may be able to pay higher prices for resale HDB flats, because they plan to rent out*the rooms for income.

Singaporeans, on the other hand, generally buy flats to stay without the intention to rent out rooms immediately.

I think most Singaporeans see a HDB flat as their home for life, and not as a temporary investment, providing income as well as saving on housing costs whilst in Singapore.

Are these some of the possible contributing factors to why HDB resale prices have been skyrocketing?

In this connection, HDB resale prices rose about 75 per cent over the last 5 years, compared to a lower appreciation for the private property price index.

HDB policy on singles: Singaporean vs Permanent Resident

Leong Sze Hian

Why are Permanent Residents (PRs) who are single buying HDB resale flats like nobody’s business?

Singaporeans who are single and below age 35 are not allowed to buy HDB resale flats unless they are orphans.

PRs sibings who are single and below 35, however, are allowed to purchase these flats.

Why does our public housing policy favour PRs over Singaporeans? Is it not discriminatory and unfair?

Has any Members of Parliament ever raised this issue vigorously in Parliament?

The mission of the HDB should be to help Singaporeans own homes. So, how can single PRs be given priority over Singaporeans?

If you are a below-35 PR in Singapore, wouldn’t you try to arrange for one of your siblings to come to work in Singapore too, and apply for permanent residency?

Whilst there are no official statistics on how many HDB flats are owned by single PRs, anecdoctal evidence seems to suggest that an increasing number of single PRs may be buying them.

As there are also no official statistics on how many single PR siblings are in Singapore, it may probably not be too far an estimate to say that there may be tens of thousands in total.

When one of the PR siblings leave Singapore, after a resale flat has been purchased, are they still allowed to keep the flat? I believe the answer is yes, at least for a few years.

The cheapest HDB 3-room flat (2 bed-rooms) that a single Singaporean or PR can rent is about S$1,500. With housing loan interest rates at historical lows in Singapore, the monthly repayment for a $220,000 HDB bank loan is only just over $800.

So, is it any wonder why it may make more sense for single PR siblings to buy a resale HDB flat, instead of renting one?

3, 4 and 5-room HDB resale flats are going for around $280,000, $370,000 and $440,000 (median sale prices), respectively, with a typical down-payment of 20 per cent of the purchase price.

PR siblings can sell their resale HDB flats after a Minimum Occupation Period of 5 years. So, from a financial perspective, it may make more sense to buy than to rent, and possibly reap the capital gains as well after 5 years.

The increasing “headache” for some Singaporeans may be that they cannot afford the Cash-Over-Valuation (COV) on a resale flat.

Since PR siblings when they first come to Singapore typically do not have permanent residency status yet, they do not need to contribute to CPF. Thus, they generally may have more cash to pay for COV because their take-home pay is higher without CPF contributions relative to Singaporeans, until such time that they become PRs and qualify to buy HDB resale flats.

Even when they become PRs, the first 2 years’ CPF contribution is lower than for citizens.

2 PR siblings may generally just need to stay in one bedroom.

So, some may rent out rooms immediately after they buy a flat. [PRs can rent out rooms immediately but not the entire flat.] The PR sibling owners can stay in 1 room themselves, and rent the rest of the rooms out. Under HDB rules, you are allowed to have up to 9 persons staying in say a 5-room (4 bed-room flat). So one can rent out to 7 persons, at say $150 per person.

Some PR siblings may also be accustomed to sharing a flat before they buy their resale flat.

So, they may be able to pay higher prices for resale HDB flats, because they plan to rent out*the rooms for income.

Singaporeans, on the other hand, generally buy flats to stay without the intention to rent out rooms immediately.

I think most Singaporeans see a HDB flat as their home for life, and not as a temporary investment, providing income as well as saving on housing costs whilst in Singapore.

Are these some of the possible contributing factors to why HDB resale prices have been skyrocketing?

In this connection, HDB resale prices rose about 75 per cent over the last 5 years, compared to a lower appreciation for the private property price index.

I STRONGLY AGREE with u.

My bro, single age 36 still can't get a resale flat.

COV so high and 3 room flat so diff to get.

singaporean so diff to get a flat ord and they still give adv to pr

While i agree that it's difficult/unfair for Singaporean singles, on the point:

Some PR siblings may also be accustomed to sharing a flat before they buy their resale flat.

So, they may be able to pay higher prices for resale HDB flats, because they plan to rent out the rooms for income.

This is too much a generalisation... i know many PRs that do not rent out rooms, and many Singaporeans that rent out rooms.

If one really need extra income, Singaporean can rent out room too, just that most people don't want to / don't like to. It's their own preference that makes them "missed" the opportunity to "rent out the rooms for income".

While i agree that it's difficult/unfair for Singaporean singles, on the point:

This is too much a generalisation... i know many PRs that do not rent out rooms, and many Singaporeans that rent out rooms.

If one really need extra income, Singaporean can rent out room too, just that most people don't want to / don't like to. It's their own preference that makes them "missed" the opportunity to "rent out the rooms for income".

I know a couple who is PR, bought a resale HDB and rent out the whole unit , lock 1 room and continue to stay at their rental room

I know a couple who is PR, bought a resale HDB and rent out the whole unit , lock 1 room and continue to stay at their rental room

wow lau, if illegal, report to HDB lah, why wait!

Edited September 16, 201016 yr by bepgof

spot on! my single frend juz call hdb whether can apply hle. was told have to wait till her birthday on december to apply if not system reject. so if she wait till december it will take atleast 2 or 3 weeks to get the hle amount. she tot get the amount and start scouting .now wait alitle much longer

I know a couple who is PR, bought a resale HDB and rent out the whole unit , lock 1 room and continue to stay at their rental room

my sis neighbour pr created part livingroom to extra bedroom and thus having 4 rooms in 4 room flat . 12 people all looking well paid. he enjoying the 2.3 rate across the island..shiok

HDB policy on singles: Singaporean vs Permanent Resident

Leong Sze Hian

Why are Permanent Residents (PRs) who are single buying HDB resale flats like nobody's business?

Singaporeans who are single and below age 35 are not allowed to buy HDB resale flats unless they are orphans.

PRs sibings who are single and below 35, however, are allowed to purchase these flats.

Why does our public housing policy favour PRs over Singaporeans? Is it not discriminatory and unfair?

Has any Members of Parliament ever raised this issue vigorously in Parliament?

The mission of the HDB should be to help Singaporeans own homes. So, how can single PRs be given priority over Singaporeans?

If you are a below-35 PR in Singapore, wouldn't you try to arrange for one of your siblings to come to work in Singapore too, and apply for permanent residency?

Whilst there are no official statistics on how many HDB flats are owned by single PRs, anecdoctal evidence seems to suggest that an increasing number of single PRs may be buying them.

As there are also no official statistics on how many single PR siblings are in Singapore, it may probably not be too far an estimate to say that there may be tens of thousands in total.

When one of the PR siblings leave Singapore, after a resale flat has been purchased, are they still allowed to keep the flat? I believe the answer is yes, at least for a few years.

The cheapest HDB 3-room flat (2 bed-rooms) that a single Singaporean or PR can rent is about S$1,500. With housing loan interest rates at historical lows in Singapore, the monthly repayment for a $220,000 HDB bank loan is only just over $800.

So, is it any wonder why it may make more sense for single PR siblings to buy a resale HDB flat, instead of renting one?

3, 4 and 5-room HDB resale flats are going for around $280,000, $370,000 and $440,000 (median sale prices), respectively, with a typical down-payment of 20 per cent of the purchase price.

PR siblings can sell their resale HDB flats after a Minimum Occupation Period of 5 years. So, from a financial perspective, it may make more sense to buy than to rent, and possibly reap the capital gains as well after 5 years.

The increasing "headache" for some Singaporeans may be that they cannot afford the Cash-Over-Valuation (COV) on a resale flat.

Since PR siblings when they first come to Singapore typically do not have permanent residency status yet, they do not need to contribute to CPF. Thus, they generally may have more cash to pay for COV because their take-home pay is higher without CPF contributions relative to Singaporeans, until such time that they become PRs and qualify to buy HDB resale flats.

Even when they become PRs, the first 2 years' CPF contribution is lower than for citizens.

2 PR siblings may generally just need to stay in one bedroom.

So, some may rent out rooms immediately after they buy a flat. [PRs can rent out rooms immediately but not the entire flat.] The PR sibling owners can stay in 1 room themselves, and rent the rest of the rooms out. Under HDB rules, you are allowed to have up to 9 persons staying in say a 5-room (4 bed-room flat). So one can rent out to 7 persons, at say $150 per person.

Some PR siblings may also be accustomed to sharing a flat before they buy their resale flat.

So, they may be able to pay higher prices for resale HDB flats, because they plan to rent out*the rooms for income.

Singaporeans, on the other hand, generally buy flats to stay without the intention to rent out rooms immediately.

I think most Singaporeans see a HDB flat as their home for life, and not as a temporary investment, providing income as well as saving on housing costs whilst in Singapore.

Are these some of the possible contributing factors to why HDB resale prices have been skyrocketing?

In this connection, HDB resale prices rose about 75 per cent over the last 5 years, compared to a lower appreciation for the private property price index.

What's this Leong SH talking about!

He is actually comparing "Public scheme" vs "citizen/PR siblings scheme".

-Former (singaporean)needs "parent"+applicant , or, applicant+"siblings", above 21 yr old

- Latter (Prs) need applicant+siblings, above 21 yr old, provided parents not permanently staying in S'pore AND parents not SC or PR.

Actually, these 2 scheme are on "par" to each other. However, questions/problems:

PR siblings can choose to leave Singapore right after purchasing resale and leave it for years for appreciation or even for rental

-HDB doing any tracking/followup?

-Making sure no "rich" PRs sibling "misuse" this scheme.

- Should there be more "conditions" to be added to this citizen/PR sibling scheme" to prevent from "misuse".

like: Ban them from renting out beside own stay?

Agreed that, this scheme can be easily "misused" by PRs siblings and make "less chance" for singaporeans who are genuinely need the house. Give some time, say, till end of this year, see what MBT says about this. If not mentioned, will do a strong "feedback". Ok?

Edited September 16, 201016 yr by bepgof

my sis neighbour pr created part livingroom to extra bedroom and thus having 4 rooms in 4 room flat . 12 people all looking well paid. he enjoying the 2.3 rate across the island..shiok

Your sis's neighbour better buy your sis presents for coming Xmas LOL. Max no of ppl allowed in 4 room is 9. She suka suka can report him to HDB.

Edited September 16, 201016 yr by forgotten

Your sis's neighbour better buy your sis presents for coming Xmas LOL. Max no of ppl allowed in 4 room is 9. She suka suka can report him to HDB.

she dun dare to pautoh ley..afraid of backlash...but m very tempted... staying across island in terrace house n earning big bucks here to spent there..whereas our own people here are staying by the beach coz of some golden rules

Edited September 16, 201016 yr by salavanun

wow lau, if illegal, report to HDB lah, why wait!

pai say

pai say

I thought you got "hero" blood flowing all over the body? Hero chiong first, do not what's "paisay".

Edited September 16, 201016 yr by bepgof

I thought you got "hero" blood flowing all over the body? Hero chiong first, do not what's "paisay".

hahaha

see me so up ah

Spore single scheme is already flawed for a start.

11K grant? what a joke, for having to buy from open market only.

It is already very very challenging for a 35yr single to buy a normal 3rm flat.

Spore single scheme is already flawed for a start.

11K grant? what a joke, for having to buy from open market only.

It is already very very challenging for a 35yr single to buy a normal 3rm flat.

11k is luckly number. when 3 room 150k till now 300k plus still 11k. maybe 3 room next time 500k also dun be surprised still 11k for singles. married couple up to 80k!! but total household must be less than 1500. that time i get 40k only