HDB, Singapore

HDB stands for Housing Development board which is a part of Ministry of National Development, Singapore.

Fact Sheet (Source: Wikipedia and HDB Homepage)

· Present statistics: 80% Singapore population resides in HDB and 95% HDB residents own their HDB flats.

· The HDB started in 1960 by Mr. Lim Kim San as a 5 year plan to provide low cost housing to residents.

· Initially built for RENTAL only, the HDB occupation law was changed in 1965 allowing people to PURCHASE HDB properties to provide a sense of financial security to residents.

· Started with the aim to clear slums in 1960s & resettling residents into low cost state housing.

· Due to land constraint, high rise and high density buildings were constructed from 1965 onwards.

· Feature:

o Housing of different income group is mixed together in estates and new towns.

o Quota System: To prevent concentration of single race in a locality.

· HDB was converted to HDB Corporation in July 1, 2003. It consists of 4 main departments – Housing Administration, Industrial properties, building quality department & community relations.

· Eligibility:

o One has to be a Singapore citizen / Permanent resident with age being 21 years and over. The family nucleus has to have at-least another Singapore Citizen or Singapore Permanent resident.

o Non citizens / singles are not allowed to purchase new HDB flats.

o One has to occupy the flat for 5 years before actually selling off it in open market.

o One can rent the flat only after 5 years of minimum occupation period (MOP).

o In case one buys a new HDB flat &is already an owner of an existing HDB flat, then he / she must dispose-off the old flat within 6 months of possession of the new flat.

o One can’t invest in private residential property during the 5 year MOP period.

o Income ceiling: For a 4-room flat, ceiling is 8000 SGD or 12000 SGD (extended family); For a 3-room flat, ceiling is SGD 3000; For a 2-room flat, ceiling is SGD 2000.

o Ownership in public housing is on 99-years lease.

o Size: 4-5 rooms in a house (number of bedrooms in addition to living rooms).

· My View :

§ Positive: The best possible solution to remove slums and make the place more habitable with increase in living standards of citizens.

§ Positive: Quota system in Singapore HDB helps to maintain the balance in the society and helps to build a homogeneous culture.

§ Positive: The process of assembling houses on site (by fitting flats one over the other) is a unique and fast way to create high rise buildings in less than 1 year (Normal Time of construction: 2-3 years).

§ Negative: The clause to sell off any property outside Singapore to be eligible for buying HDB property in Singapore is actually denying the citizens the right to live and prosper in any part of the world (where he/she resides or is a frequent visitor).