About 1,700 HDB Flats Surrendered to HDB in Past 5 Years, Most Commonly Due to Divorce and Break-Ups

By
Ashley Seek
-

Last Updated on 2021-03-04 , 12:04 pm

When talking about HDB-related news recently, we’ve had quite a few positives.

It was recently reported that in October, a resale flat in Bishan was sold for S$1,208,000.

Even in January, three Bishan flats was also sold from pretty handsome sums as well.

There was even a survey conducted that showed people are now happier with HDB flats and estate facilities.

But of course, with most good things comes a flip side to the story.

About 1,700 HDB Flats Surrendered to HDB in Past 5 Years, Most Commonly Due to Divorce and Break-Ups

Giving up a house is always a bad feeling.

The Straits Times reported that about 1,700 flats were surrendered to HDB over the past five years.

This was revealed by Senior Minister of State for National Development Sim Ann on 2 March, Tuesday, in Parliament.

About 700 of these cases were from changes in their owners’ circumstances within their minimum occupation period (MOP).

Some of these cases would include things like divorces or break-ups.

Not fulfilling the MOP wouldn’t allow these people to sell their flats, despite changes making them unable to own one.

The remainder of roughly 1,000 of the surrendered flats was due to flats with short leases.

These included studio apartments, two-room flexi flats bought on a short lease and flats whose owners had opted for the Lease Buyback Scheme.

Like the previous case, owners couldn’t sell these flats on the open market once the lease was up or was ineligible to keep them and had to return them to HDB

But before you ask, “what’s going to happen to them,” don’t worry.

Compensation

HDB has got them covered as owners will be compensated for the surrendered flats.

The board will offer these flats for sale through the Sale of Balance Flats (SBF) exercises.

And this is a two-way street for both the sellers and those looking to buy a flat as well.

Usually, getting a Build-To-Order (BTO) flat needs around a three to four year waiting period, since you need to wait for its construction first.

However, buying an SBF means getting a mid-constructed or even a completed flat without as long a waiting period.

You can read more on that here if you’re interested.

However, should a flat remain unchosen after the SBF exercise, they’ll also be available for open booking.

Open Booking

Here’s how it works.

Open booking allows one to apply for a flat online. The selection appointment happens on a first-come, first-served basis,

This means it is entirely possible to get the flat as early as the next day.

In fact, most flats under the open booking system come from the pool of those that remain unselected after the twice-yearly SBF exercises.

Either way, there is a good chance that under HDBs schemes, the returned flat will be sold.

According to Minister of State for National Development Tan Kiat How, as of 22 Feb, 1,521 flats had been booked using the open booking system.

The breakdown is as follows:

  • 46 two-room flexi flats
  • 273 three-room flats
  • 601 four-room flats
  • 597 five-room or three-generation flats
  • 4 executive flats.

HDB is also looking at more ways to offer flats through open booking.

Feature Image: HDB

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Ashley Seek
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