Friday, November 25, 2011

Singapore PRs own 48,700 HDB flats as of September 2011

48,700. This is the number of HDB flats owned by Singapore Permanent Residents as of September 2011, according to the latest figures released by Ministry of National Development (MND).[1] There are currently around 530,000 Singapore PRs according to the latest Singapore population figures.

In Singapore, Singapore Permanent Residents are allowed to buy HDB flats, public housing flats in Singapore named after the Housing & Development Board, from secondary market. These HDB flats are called resale HDB flats and enter the resale HDB flat market after 5 years of minimum occupancy period by their original buyer. Singapore PRs compose 20% of the demand for resale HDB flats [2]

High intake of Singapore PRs between 2005 - 2008 period with relatively relaxed eligibility criteria has caused a public out cry since PRs compete with citizens in public and private housing, public transportation, schools, etc. Their demand for resale HDB flats has been a hot topic recently and triggered tightening in Singapore PR eligibility criteria. Singapore PR rejection rate, for example, went up from 22% in 2008 to 70% in 2010.

So only around 5% of all HDB flats in Singapore are currently owned by Singapore PRs. The percentage looks small compared to total units available. But 48,700 is a large number compared to resale HDB supply of 2000 - 2010 period. Around 5,000 units were built per year between 2000 and 2010 and 48,700 is nearly equal to the 10 years of supply (Also keep in mind that actual number of HDB flats bought by Singapore PRs is more than 48,700 since some PRs convert to Singapore Citizenship eventually).

[1] - 48,700 HDB flats owned by PRs as of Sept
[2] - Who buy resale flats?

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