10 years minimum occupancy, clawback of resale proceeds – but PLH flats can still be good buys

ONE wonders if prime location public housing (PLH) flats are proving not all that popular with eligible Housing and Development Board (HDB) build-to-order (BTO) flat buyers. In the last BTO exercise, the application rate among first-time non-elderly applicants for four-room flats was 3.7 times for the PLH flats in Bukit Merah, versus 17.2 times and 8.7 times for non-PLH flats at Sun Plaza Spring in Tampines and Central Weave @ AMK in Ang Mo Kio respectively.

I was excited when details of the PLH model were unveiled just over a year ago, as the PLH model aims to ensure that new public housing built in prime, central locations like the city centre will remain affordable, accessible and inclusive for Singaporeans.

More onerous conditions apply to buyers of PLH flats. PLH flat owners will need to occupy their flats for at least 10 years – the minimum occupancy period (MOP) – before they can sell their flats in the open market or invest in a private home. The MOP is five years under the BTO model. While PLH flat owners can rent out their spare rooms, renting out the whole flat is not allowed, even after the MOP, whereas renting out the whole flat is allowed after the MOP under the BTO model.