Can a Singapore PR buy an HDB flat?

Here's a question we get all the time: Can a PR buy an HDB flat?

The short answer is that a Singapore Permanent Resident (SPR) is only allowed to buy an HDB resale flat - as in, an HDB flat bought in the open market from existing owners. 

A PR can only buy a subsidised flat directly from HDB under the Build-To-Order (BTO), Sale of Balance Flats (SBF) or Open Booking schemes, if he or she is buying with a Singapore citizen.

Even so, buying resale flats for SPR is subject to a number of conditions.

Buying under the Public Scheme

Under HDB's Public Scheme, an SPR can purchase HDB resale flats only as part of a family nucleus (i.e. a household) with at least one other applicant.

The other applicant(s) must be the SPR's spouse and children, parents and sibling, or children under their legal custody (for widowed or divorced applicants). 

In other words, single SPRs are ineligible to buy a resale HDB flat.

There are also these conditions for an SPR who wishes to buy a resale HDB flat:

• Buyer must be 21 years old or above
• If you're unmarried and purchasing a flat with your parents, at least one of them has to be a Singapore Citizen (SC) or SPR of at least three years
• If you have an SPR household with no SC co-buyer, all listed occupiers in your household (including yourself and any co-buyer) has to be an SPR for at least three years
• You'll have to meet the Ethnic Integration Policy (EIP) and SPR quota for your block/neighbourhood of choice when submitting your resale application
• Upon purchase of the HDB resale flat, the buyer cannot sell the resale flat or rent out the entire unit for five years under the Minimum Occupation Period (MOP)
• Buyer cannot own any property (HDB or private) in Singapore or overseas. The buyer must dispose of any of these properties within six months of buying an HDB resale flat.
• Households with at least one SC owner can retain the flat when they buy a private property after the MOP. On the other hand, if the flat owners are all SPRs (no SC in the household), they'll need to sell the flat within six months of buying a private property.

How does the EIP quota work?

HDB states that the role of the Ethnic Integration Policy (EIP) is to "preserve Singapore's multi-cultural identity and promote racial integration and harmony".

Essentially, the EIP quota helps ensure there is a balanced mix of ethnic communities in HDB towns.

In order to fulfil the EIP quota, you have to:

• Be of the same ethnic group as the seller, or
• Ensure the block/neighbourhood's EIP quota is available for your ethnic group (i.e. not filled up)

EIP quotas set at ethnic proportions of the block/neighbourhood are based on the ethnic make-up of Singapore, and are updated on the first of every month.

Check if you fulfil the EIP quota of a specific block/neighbourhood via HDB's portal.

How does the SPR quota work?

While all Singapore Permanent Resident resale flat applicants must fulfil the EIP quota, the SPR quota only applies to non-Malaysian SPRs. If you're a Malaysian SPR, you can skip this section.

The SPR quota ensures that SPR families can better integrate into the local community.

According to the quota, non-Malaysian SPR households should make up no more than five per cent of households within a neighbourhood, and eight per cent of households within a block.

Similar to the EIP quota, the SPR quota is updated on the first of every month.

You may check if you fulfil the quota by using the same HDB portal.

What if you are a Singapore PR who's engaged and waiting to get married?

You're eligible to purchase a resale flat with your partner under the Fiance/Fiancee scheme.

If your partner is a Singapore citizen, you're good to go as long as you meet the EIP and SPR quotas upon submitting your resale application.

Bear in mind that you'll have to register your marriage at the Registry of Civil Marriages or Registry of Muslim Marriages within three months of the resale completion date. If you wish to register your marriage overseas, you'll have to submit a photocopy of your marriage certificate, also within three months of the resale completion date.

If your partner is a SPR like yourself, the same rules apply. But both you and your partner will also need to have the SPR status for at least three years before you can purchase a resale flat.

Also note that if your partner is between the age of 18 and 21, written parental consent needs to be obtained and presented to HDB.

What grants are available to Singapore PRs buying HDB resale flats?

You may qualify for grants if you're applying with a Singapore citizen.

Family Grant

SC/SPR households who are first-timer applicants are eligible for the Family Grant if you meet the income ceiling of $14,000 (or $21,000 if you're buying with the extended family).

You can get up to $40,000 if you're buying a two-room, three-room or four-room resale flat, or $30,000 if you're buying a five-room or bigger resale flat.

Enhanced Housing Grant

You may also be eligible for the Enhanced Housing Grant (EHG) if your household income doesn't exceed $9,000.

Proximity Housing Grant

If you live with or near your parents you can qualify for the Proximity Housing Grant (PHG) as well. You can get up to $30,000 if you live with your parents, or $20,000 if you live within 4km of your parents' house.

You can read more about the CPF Housing Grants for resale flats here.

Frequently asked questions

Can a PR buy a BTO flat?

A PR can only buy a BTO flat if he or she is buying with a Singapore citizen.

When can PRs buy an HDB flat?

If there are no Singapore citizens in the household, PRs can only buy an HDB resale flat three years after they've received their PR status.

Can a PR get HDB loan?

You can get an HDB loan if you're applying with a Singapore citizen.

ALSO READ: A single home buyer's journey during Covid-19: How I bought and built my own home

This article was first published in 99.co.