Eyeing a prime-location BTO flat? What you need to know about the new 10-year MOP
Build-to-Order project in Rochor under the Prime Location Public Housing (PLH) model, launching in November 2021.
PHOTO: HDB
PUBLISHED ONOctober 27, 2021 4:28 AMByMohammed Zakaria
Instead of five years for most new flats, the minimum occupation period (MOP) for new public housing in prime locations will be extended to 10 years, according to Minister for National Development Desmond Lee on Tuesday (Oct 26).
In consulting over 7,500 Singaporeans' views on such public housing since November 2020, self-occupancy was an important point raised.
"They felt more should be done to deter speculative demand, given the very attractive and exclusive locations of these homes, and the potential for significant windfall gains," Lee said.
"To address these concerns, we will extend the minimum occupation period for these prime location public housing to 10 years, from the current 5 years."
This was one of the key measures announced in the Prime Location Public Housing (PLH) model at a press conference held at the Ministry of National Development.
"We will also disallow owners of these flats from renting out their whole flat at any point in time, even after the MOP is over," he added. Currently, renting out the entire flat is allowed after meeting the MOP.
This new model will ensure that public housing built in prime, central locations like the city centre and the Greater Southern Waterfront will remain affordable, accessible and inclusive for Singaporeans.
"Because if you leave everything to the forces of the private market, these attractive locations would likely become very expensive and exclusive locations, with housing that only the well-to-do can afford," Lee said.
Other key measures announced include: additional subsidies over and above the current Enhanced Housing Grant and their recovery if you sell the flat; reduced quota for the Married Child Priority Scheme; and stricter conditions to be eligible for housing in prime locations.
The first project under the PLH model will be launched at Rochor during next month's Build-to-Order (BTO) sales exercise.
The proportion of BTO flats sold within a year of meeting the MOP doubled between 2016 and 2020, according to the Housing and Development Board, in a report by news website Today. It highlighted that in 2016, the figure was 6.5 per cent and in 2020, it climbed to 13.4 per cent.
In 2019, Prime Minister Lee Hsien Loong announced the Greater Southern Waterfront, which would have public and private housing with waterfront promenades.
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