1 Room Hdb Flat For Sale In Singapore
Maureen Quartaro
Property analysts said such sales are possible as HDB does not regulate the prices of flats in the resale market. This means that a minimum or maximum limit is not placed on a resale flat transaction.
This is because the CPF Board requires sellers to refund the principal amount of CPF savings they had previously withdrawn to pay for their property, alongside the interest accrued, once the unit is sold.
These resale transactions involve a change of flat ownership by way of a partial sale or purchase between family members at a mutually agreed price. Monetary consideration is involved for such change in ownership, said HDB on its website.
While buyers may use such information to negotiate for a lower price, Mr Tan said the price is ultimately arrived at based on a mutual agreement between the buyer and seller, and a seller may reject the low asking price if they are not in need of the sale.
In a joint statement on May 8, the Ministry of National Development, the Housing Board and the Council for Estate Agencies (CEA) said CEA is aware of the listings put up by two property agents and is investigating.
Separately, the authorities said a five-room Design, Build and Sell Scheme (DBSS) flat in The Peak@Toa Payoh, which was also listed for $2 million, does not have an intent to sell registered with HDB. This means that the potential seller cannot grant an option to purchase to buyers at this stage. Sellers of HDB flats have to register their intent to sell before they put their flat on the market.
At the listed price of $2 million, both the Sengkang and Toa Payoh flats will come with significant cash over valuation (COV), the authorities said. COV is the amount a buyer has to pay in cash when a resale flat is sold above its HDB valuation.
Under the code of conduct for estate agents, property agencies and agents have a duty to uphold the integrity and professionalism of the real estate industry, and to act responsibly in conducting their work, the authorities added.
Mr Nicholas Mak, chief research officer at property search portal Mogul.sg, said that if the property agents are aware that the $2 million asking price is unrealistic, they should advise the sellers to lower it.
If you buy a new flat directly from HDB
Within a year of taking possession of your flat, IRAS will send a valuation notice with the assessed annual value (AV) of your flat, and your first property tax bill with the amount of property tax payable from the date of possession.
IRAS assesses HDB flats by analysing the recent rental rates of the various room types. The data for rental rates is available from the e-Stamping records. In general, bigger and more centrally located flats have higher rental rates and AVs.
HDB allows sellers to extend their stay for a default period of 3 months after the sale of the flat to the new owner. If you have agreed to this arrangement with the seller, you have to pay property tax at the higher non-owner-occupier residential tax rate for the 3 months as you are not staying in the flat. Hence, you will not enjoy the concessionary owner-occupier tax rates for the extension period. This is stated in the HDB Terms and Condition and the Letter of Acceptance and Indemnity during the temporary extension of stay application.
After the 3-month temporary extension of stay period is over, owner-occupier rates will automatically apply. Owners need not write in to IRAS to apply for the owner-occupier tax rates. Please refer to the examples on property tax payable if a temporary extension of stay is applicable:
If the seller terminates their extension of stay early (i.e. before 3-month period is over), you must update HDB by logging in to My HDBPage with your Singpass within 7 days of the termination. The information will be transmitted to IRAS and IRAS will notify you of the tax adjustments in the following month.
When you sublet some of your rooms while still occupying the flat, you will be taxed at the owner-occupier tax rates. Please ensure that your tenant/agent stamps the rental agreement as "partially let" instead of "wholly let" to continue enjoying the owner-occupier tax rates.
Upon sale of your flat, HDB will notify IRAS of the transfer of the HDB flat. HDB officers or your lawyer/agent will assist in apportioning the tax amount and seeking reimbursement from the buyer. IRAS does not apportion nor arbitrate property tax liabilities between the parties.
If you are on GIRO arrangement, please arrange to pay the property tax in full at least one week before the completion date of the sale of your flat. There will be no further GIRO deduction once you have settled the full payment.
Check on your outstanding amount and arrange for payment at mytax.iras.gov.sg > Account > Pay Taxes.
HDB will notify IRAS of the transfer of the HDB flat and all GIRO arrangements will be automatically terminated.
No. OOTR is a concession given only if the owner is residing in the flat. As you are not residing in the flat during the extension of stay period, OOTR will not be applicable. Whether rent is involved for the extension period is not a relevant consideration for the OOTR concession.
Once the flat is transferred to the buyer, the buyer is responsible to pay any outstanding property tax. The extension of stay is a private arrangement between the seller and the buyer, and the parties may wish to liaise separately on payment matters. IRAS does not arbitrate on this matter. Please note the concessionary owner-occupier tax rates will not be applicable during the period when the seller continues to reside in the flat after the resale transaction has been completed. The lower tax rates would only apply from the date the new owner moves in to reside in the flat.
The lower owner-occupier tax rates is a concession granted only if the owner is residing in the flat. The owner-occupier tax rates will not be applied on the flat for the extension of stay period because you are not residing in the flat. During the extension of stay period, the higher residential tax rates would apply, which would result in additional property tax payable.
No. OOTR is a concession granted only if the owner is residing in the flat. As you are not residing in the flat, OOTR will not be applicable. Your flat will be taxed at the non-owner-occupier residential tax rates if it is left vacant and not rented out.
In a joint statement issued on Wednesday (May 8) in response to media queries, the Ministry of National Development (MND), Housing Development Board (HDB) and CEA also addressed the listing of a S$2 million five-room Design, Build and Sell Scheme (DBSS) HDB flat in Toa Payoh.
"Currently, there is no Intent to Sell registered with HDB for this particular flat, which means that the potential seller/s of this flat are not able to grant any Option to Purchase (OTP) at this stage," MND, HDB and CEA said.
"To protect the interests of the public and promote information transparency to facilitate informed decisions by prospective buyers, CEA will also look into the information presented by property agents when they market HDB flats" said the authorities.
Resale flats that were transacted at S$1 million or more form a small minority of all resale transactions, said MND, HDB and CEA, noting that such flats hold attributes such as good locations and their proximity to amenities and MRT stations.
The property analysts said that such sales are possible because HDB does not regulate the prices of flats in the resale market. This means that a minimum or maximum limit is not placed on a resale flat transaction.
Sellers who had previously taken a housing loan that is financed through their Central Provident Fund (CPF) savings would need to fork out cash to pay back the money taken from CPF, upon the sale of their property.
Even though such policies might discourage some property owners from accepting a low selling price, it does not stop anyone from listing a property at any price and a buyer from purchasing at said prices, he added.
These resale transactions involve a change of flat ownership by way of a partial sale or purchase between family members at a mutually agreed price. Monetary consideration is involved for such a change in ownership, HDB states on its website.
And although buyers may use such information to negotiate for a lower price, Mr Tan said that the price is ultimately decided based on a mutual agreement between buyer and seller, and a seller may reject the low asking price if they are not in great need of the sale.
So instead of just focusing on the low price of the flat, the circumstances behind the sale also matter and it is unlikely that future buyers and sellers in the area would encounter a similar scenario.
Note:
1. Selling prices are rounded up to the nearest thousand dollars. Actual selling price of individual flats will vary based on location and other attributes.
2. Starting prices of short lease 2-room Flexi flats are based on 40-year lease. Buyers can refer to prices of individual flats on short lease in the project pages.
3. Starting prices of CCA are based on 30-year lease. Buyers can refer to prices of individual CCA in the project page.
4. + Buyers need to pay 5% of the published price using their CPF and/or cash savings when their EHG exceeds 95% of the published price.
1. Family ($14,000)
2. Extended Families ($21,000)Property Ownership Statis1. All applicants and occupants listed in the flat application must not own any other property, whether locally or overseas
2. Within the last 30 months, you should not have sold or disposed of any property
3. Starting from the date of the flat application until after the Minimum Occupation Period (MOP), you and all other applicants or occupants mentioned in the application are not allowed to invest in private residential property
4. You should not have previously purchased a new HDB/Design, Build and Sell Scheme (DBSS) flat or Executive Condominium (EC), nor have received a Central Provident Fund (CPF) Housing Grant
5. Alternatively, if you have previously purchased one of those properties and have received only one CPF Housing Grant, you still meet the requirements.Please note that the aforementioned requirements apply solely to individuals applying as part of a family nucleus or with their fianc/fiance/spouse.