Subletting of HDB flats had been tripled over past 5 years - 24Jan2012

Subletting of HDB flats had been tripled over past 5 years - 24Jan2012 2.68 min. | 0 user rating | views SINGAPORE: The number of Housing & Development Board (HDB) flats being sublet has more than tripled in the past five years. The reasons include the relaxation of subletting rules, and an increase in foreigners. With more HDB home-owners using their flats to earn rental income, some analysts are concerned this will lead to a shortage of supply in the resale market. The number of HDB flats on the rental market has shot up from about 12500 in 2006 to 40026 in 2011. Previously, flat owners could only lease out their flats if they could show proof they had been living overseas for a certain period of time. Since 2003, the HDB has gradually brought down the minimum occupation period (MOP) after which owners can sublet their flats. Currently, the MOP is five years for both new and resale flats, regardless of whether they are bought with a government grant. And with more foreigners coming to study and work here, there is no shortage of demand. These include students as well as foreign work permit-holders and employment pass-holders. One relocation company, Orientations, said the number of expatriates opting to rent an HDB flat has gone up by 30 per cent, between 2010 and 2011. Many of them are mid-level professionals from Asia who are receiving smaller housing allowances compared to previous years. Orientations chairman Beverly Mayhew noted that the amenities in some public housing estates - such as swimming pools, transport hubs and recreational centres - make them very ... More information