Suppose you dream of owning a new HDB flat in a prime location like the city center or the Greater Southern Waterfront. In that case, you may want to pay attention to the new Prime Location Public Housing (PLH) model announced by the Ministry of National Development (MND) and the Housing & Development Board (HDB) on 27 October 2021.
The PLH model is a scheme for housing projects in prime locations in Singapore that aims to ensure that they remain affordable, accessible, and inclusive for Singaporeans. It also seeks to prevent the formation of wealthy enclaves and preserve social diversity in these areas.
Here are some key features and implications of the PLH model that you should know before applying for a new PLH flat.
1) Eligibility Conditions
To buy a new PLH flat, you must meet the prevailing BTO eligibility conditions such as being a Singaporean household and meeting the household income ceiling, currently set at $14,000.
You can only submit one application for one town and one flat type in a sales launch. If there is a concurrent SBF exercise, you can only apply to either the BTO or SBF exercise. You cannot apply for both BTO and SBF exercises in the same launch.
2) Minimum Occupancy Period (MOP)
Unlike the usual five-year MOP for new HDB flats, you will have to occupy your PLH flat for at least 10 years before you can sell it on the resale market. This is to ensure that buyers are committed to living in their flats and not just buying them for investment purposes.
3) Rental Restrictions
You cannot put up your PLH flat for rent for as long as you own it, even after the 10-year MOP. This is to prevent speculation and profiteering from renting out prime location flats at high prices. You can only rent out spare bedrooms within your flat, subject to existing subletting rules.
4) Subsidy Recovery
As PLH flats are priced with additional subsidies on top of the significant subsidies that HDB provides in pricing new flats for sale, the additional subsidies provided at the first sale will be recovered upon resale of the flats. This means that you will have to pay back the difference between the market value and the subsidized price of your flat when you sell it. This is to ensure that the subsidies are not capitalized into resale prices and benefit subsequent buyers.
5) Resale Eligibility Criteria For Resale Buyers
To ensure that PLH flats remain accessible and inclusive for Singaporeans, there will be eligibility criteria for subsequent resale flat buyers. These include:
6) Priority Allocation Quota
The proportion of flats set aside for households applying for flats to live with or near their parents/ married children under the Married Child Priority Scheme (MCPS) will be reviewed and adjusted depending on the location of the project. This is to balance the demand from different groups of applicants and ensure a fair allocation of flats.
