The first project under the new prime location public housing (PLH) model will be built at Rochor and launched at this month November’s Build-to-Order (BTO) exercise.
According to Ministry of National Development (MND) and Housing and Development Board (HDB), the Rochor BTO project situated along Weld Road and Kelantan Road, is expected to offer 960 units of three-room and four-room flats as well as 40 units of two-room rental flats.
The Rochor BTO will occupy two plots of land. One plot was where the Sungei Road flea market (aka Thieves’ Market) used to be, before it vacated the premises in July 2017. The other plot of land, which is next to Sim Lim Tower, used to be an open-air car park.
However, those who decide to sell their BTO flats will have to pay a percentage of the flat’s resale price to the HDB, enabling the authorities to claw back the additional subsidies. This subsidy clawback will apply when PLH flats are first sold on the resale market. The clawback of additional subsidies under the Prime Location Public Housing Model (PLH) when the HDB lessee is able to dispose of the flat after an extended MOP of 10 years, is a mechanism put in place for equitability. This prevents HDB lessees of the prime housing location from over-benefitting as compared to another HDB lessee in a non prime housing location.
HDB noted that the subsidy recovery percentage “will be commensurate with the extent of the initial additional subsidy provided”.
Owners can not rent out their whole flat even after the MOP and only let spare bedrooms. These conditions will apply to those who purchase the PLH flat from HDB and in the open market.
The resale of PLH flats will be limited only to buyers who meet the eligibility criteria to buy BTO flats. These include having at least one applicant who is a Singapore Citizen, having a monthly household income of not more than $14,000 and being an eligible family nucleus, such as married couples. Singles above 35 do not qualify to purchase resale PLH flats.
Future resale buyers of PLH flats should also not own or have an interest in a private property and have not disposed of any within the last 30 months.
PLH flat owners will have to fulfil a longer Minimum Occupation period (MOP) of 10 years before they can sell their flats in the open market or invest in a private home.
The upcoming Rochor PLH BTO exercise will be expected to launch in November this year. More details will be announced at the launch this month.