Non-citizen quota on subletting of HDB flats for rent – HDB flats for rent
From 16 January 2014, HDB will introduce a quota on the subletting of whole HDB flats to non-citizen (NC) subtenants. This is to prevent the formation of foreigner enclaves in HDB estates, and maintain the Singaporean character of our HDB heartlands. HDB flats for rent.
NC Subletting Quota Framework
Before 16 January 2014, only Singapore Citizens and Permanent Residents can buy HDB flats. But foreigners can rent rooms or entire flats. Currently, there is no cap on the number of flats sublet to such foreign tenants in HDB blocks. Less than 4% of HDB flats are sublet to foreigners, excluding Malaysians. However, the proportion could go up to 9% in some areas, or even 18% in some blocks. HDB flats for rent.
To prevent the formation of foreigner enclaves, HDB will implement a quota to cap the number of flats that can be wholly sublet to NCs in each neighbourhood and block. The quota will be set at 8% at the neighbourhood level, and 11% at the block level. It will apply to subtenants who are Singapore Permanent Residents and foreigners, but will not apply to Malaysians who can better integrate into our estates due to their cultural and historical similarities with Singaporeans. HDB flats for rent.
The quota will also not apply to subletting of rooms, to reduce the impact on those who rely on subletting for additional income, especially the elderly and low-income households.
This aims to maintain the Singapore character of our HDB heartlands while balancing the housing and subletting needs of citizens and foreigners in Singapore.
Implementation Details
The new policy will apply to all flat subletting applications received by HDB with immediate effect. All flat owners who sublet their flats to one or more NCs will be subject to the NC quota.
A new e-Service is available on the HDB InfoWEB for members of public to check if a flat can be sublet to NCs. The information will be updated on a monthly basis on the first day of the month, and is valid for the whole calendar month.
Flat owners who are currently subletting their whole flat with HDB’s approval may continue to do so for the remaining approved duration. Once the existing approval expires or is terminated, any subsequent flat subletting application will be subject to the new policy. HDB flats for rent.
Inclusion of NCs During Subletting Term
Currently, the maximum period of subletting allowed per application is 3 years (if the subtenants are Singaporean/Malaysian), or 1.5 years (if they are non- Singaporean/Malaysian). Flat owners who have obtained approval to sublet their flat to Singaporean/Malaysian subtenants, and who wish to include NC subtenants subsequently, will be subject to the NC quota. There will be no change to the approved subletting period if the remaining approved duration is less than 1.5 years from the date of inclusion of the NC subtenant. However, if the remaining approved duration for flat subletting is more than 1.5 years, it will be reduced to 1.5 years from the date of inclusion.
Actions against Unauthorised Subletting
10We would like to remind all flat owners that unauthorised subletting of the HDB flat is a serious infringement of the lease. HDB will take firm action against errant flat owners, which can include a fine and compulsory acquisition of the flat.
Source: HDB website
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