Singapore's Minister of National Development Lee Chee San reiterated in an article that it is possible to violate the law if you have not lived in the flat for a minimum period of time.
A 1,206-square-foot five-bedroom corner unit in HDB block 505A at 51st Street, Yishun, has been put up for sale online for S$690,000 (about $3.45 million).
The seemingly uneventful advertisement for the house has recently created a buzz on the internet because some sharp-eyed netizens found that the owner had purchased the house 8 years ago, but the unit in the picture was still "original", not only was the water and electricity not connected, nor was the flooring laid, and even the plastic sheeting on the toilet cover had not been removed.
As reported earlier, the five-room pre-purchase units are priced between S$277,000 (about RMB 1.385 million) and S$352,000 (about RMB 1.76 million).
This also means that the homeowner wants to resell the unit at double the price. However, many netizens believe that the flat has been vacant for 8 years and the owner has not met the Minimum Occupation Period (MOP) resale condition, arguing that the deal may be against the law.
National Development Minister Lee Chee San has recently received a similar inquiry, that is, a family bought a HDB flat, did not live in it or move in for five years, and sought to sell it in almost new condition in the resale market.
Lee Chi-sing answered on Facebook, "The answer is no."
He stressed that the owner of a pre-purchased HDB flat must occupy the flat during the minimum residence period, and if the owner is unable to live in the flat for the full minimum residence period, then the flat will have to be returned to HDB.
HDB will then classify the flat as a surplus HDB flat for other buyers to apply. Otherwise, the owner may violate HDB regulations and the authorities will investigate accordingly.
The HDB website also states that the owner must personally live in the flat for a minimum number of years before he/she can apply for resale. The minimum number of years of residence is counted from the day the owner gets the keys, and any time the owner does not live in the flat will not be counted.
Lee Chi Sing urged that if one suspects that the HDB flats are being abused, one can call the toll-free hotline 1800-555-6370 and reflect to the HDB.
Housing experts pointed out that the market does exist for HDB flats for profit, but there are challenges with the actual regulation.
Many netizens believe that the homeowner is seeking to sell at this point in time after eight years, hoping to take advantage of the current hot market to resell at a high price for profit. The house advertisement was currently pulled down immediately after the discussion it generated.
According to the market observation of John Mak, head of an industrial research and consulting department, vacant HDB flats are rare in the local market, but not unheard of.
Some buyers may buy pre-purchased HDB flats or executive condominiums as soon as possible while their annual income is still eligible, and they may not even care about the location, but see it as an investment tool or a weekend getaway.
We can't rule out the possibility that some homeowners are buying HDB or condominiums with an investment mindset, but we can't generalize. Some homeowners may be leaving their units vacant because they are moving to take care of their elderly parents, or because their parents' homes are closer to their workplaces.
