In an effort to reduce the “lottery effect” for those who get public housing units in prime areas, the Housing Board yesterday launched a new model, starting with 960 Build-To-Order (BTO) flats in Rochor, which come with a 6 per cent subsidy clawback clause upon their resale.
The highly anticipated project – River Peaks I and II – is the first to come under a new prime location public housing (PLH) model which imposes stricter buying and selling conditions.
The owners of these flats will pay 6 per cent of the resale price or valuation, whichever is higher, to HDB when they sell their home on the open market for the first time.
Owners will also be subject to a 10-year minimum occupation period – up from five years for other flats – before they can sell their flats on the open market.
The pool of resale buyers will also be limited to households which earn not more than $14,000 a month, with at least one Singaporean applicant.
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