Tag Archives: Minimum Occupation Period

Resale EC prices up 25.7% since end 2010

Prices of resale executive condominiums (ECs) rose in tandem with private condos and even surpassed new ECs, said Jones Lang LaSalle (JLL).

ECs were introduced in 1996 catering to buyers who found private homes too expensive. While they were priced affordably compared to private condos, the units came with limitations.

For instance, ECs come with a Minimum Occupation Period (MOP) of five years before they can be sold on the open market. Between the 6th and 10th year, only Singaporeans and permanent residents (PRs) can purchase them, while foreigners can only do so after the 11th year.

After a two-year hiatus, new EC launches resumed in Q4 2010 and prices exceeded those of their resale counterparts due to being new and having a fresh 99-year lease.

But quarterly median prices of resale ECs from that period to Q1 this year surged by 25.7 percent, beating the price growth of new units. Meanwhile, median prices of resale units hit S$778 psf last quarter compared to S$748 psf for new ECs.

Moreover, resale prices of ECs grew in line with those of similar private homes. From Q1 2009 (when the EC sector bottomed following the global downturn) to Q1 this year, median prices of resale ECs jumped by 76.8 percent from S$440 psf to S$778 psf. They even moved past the 72.6 percent gain for resale non-landed 99-year leasehold private homes in the OCR (Outside Central Region) during the same period.

The findings show that resale ECs are a practical alternative to private resale condos and even new ECs because of comparable or better capital appreciation. They also “augur well for the EC market and buyers who will feel even more confident that ECs are reasonable investments to commit to”, noted JLL.

Source : PropGuru – 25 Apr 2013

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HDB has stepped up its efforts against illegal subletting

We refer to the letters “Can HDB step up enforcement?” (July 13) and “List all authorised sublet flats in a public database online” (July 16). We thank the writers for their feedback and suggestions.

We assure the public that the Housing and Development Board takes a serious view of any unauthorised subletting, whether by citizen or permanent resident households, as HDB flats are primarily meant for owner occupation.

Owners who wish to sublet their entire flats must meet the Minimum Occupation Period and obtain HDB’s approval first.

They must comply with the HDB’s terms and conditions, for example, by ensuring that the number of subtenants does not exceed the maximum allowed for the various flat types. Subletting of flats or bedrooms for short-term stay to tourists is also not allowed.

Owners who try to circumvent the HDB’s rules by locking up one room and subletting the rest of the flat without physically staying in it will be regarded as having engaged in unauthorised subletting of the entire flat.

The HDB has been stepping up enforcement against unauthorised subletting. Besides conducting regular checks on approved subletting cases to ensure rules are complied with, the HDB does spot checks and planned inspections to ensure the proper use and occupation of flats.

Last year, the HDB carried out 7,000 flat inspections. Most of the cases were in order. However, we found 56 flats with unauthorised subletting and took action against the owners, including imposing financial penalties or compulsorily acquiring their flats.

Before renting a flat or a bedroom, prospective subtenants should familiarise themselves with the eligibility conditions for subtenants as well as for owners, as it is important they ensure that the flat owner has obtained approval to sublet the flat.

More information could be found at the HDB’s website, http://www.hdb.gov.sg, under “Living in HDB flats”.

The HDB will continue its efforts against unauthorised subletting. The public may call our hotline at 1800-555-6370 (Monday to Friday, 8am to 5pm) to report any suspected cases of unauthorised subletting. Any information provided will be treated with the strictest confidence.

From Lim Lea Lea Director (Branch Operations),
Housing & Development Board

Source : Today – 2012 Jul 31

See : Stricter rules for PRs subletting flats