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7 May 2012, 6.07PM

One of the seldom mentioned reasons for the spiraling prices of HDB flats is their illegal subletting by owners for commercial purposes which led to their increased valuation.

Though HDB flats are meant to be used for residence only, the rules are increasingly flaunted by owners who convert their flats either into a workers’ dormitory or hotel.

Attached below is an advertisement on ‘roomorama’ offering a common room in a HDB flat in Sengkang for $55 a night:


Its description reads:

“Fully furnished spacious common Single/double room with air con, bed, wardrobe with shared bathroom for short and long term rent in clean and quiet environment..Check in after 2pm . Check out before 12 noon. Extra person @ extra charges will be provided a single bed with mattress, pillow, blanket or comforter and clean quality bed sheet. All rooms are solely to yourself with secure Lockable Security and fully furnished with a/c.”

A quick check on the same website reveals other similar advertisements being put up soliciting for customers which is illegal under HDB rules.

Here’s another one at Clementi which charges $100 for a night stay:

Besides subletting for temporary stay, another form of illegal subletting involves housing more than the stipulated number of residents allowed in the flat.

The flat owner rents out the entire unit to a tenant, usually a foreigner who will then sublet it to other foreign workers. The common practice entails squeezing 6 to 8 men in a single room. Each person pays a monthly rental of $100 – $200 for a space on a double-decker bed, utilities and Wifi access.

HDB should send more officers on the ground to clamp down on such illegal subletting of HDB flats which has becoming increasingly prevalent over the last few years.

Not only must the rules be strictly enforced, harsh punishments should be meted out to the culprits including repossession of their flats, a fine and jail term to send a strong deterrent message to other potential offenders.

HDB flats are one of the pillars of our society with more than 80 percent of Singaporeans living in them. Such illegal subletting makes a mockery of HDB’s initial lofty aims of providing affordable housing to the masses and tears down the social fabric of our nation as well which we have painstakingly built up over the years.

1173 views  |  8 comments & replies  | 
Guest
7 May 2012, 6.36PM

Why is one man's business be another's man's gossip? 

Are we so free that we should be minding what our neighbour does in his own home?

Is it similar to installing a CCTV through the walls? 

What factors bond us within a community?

Or is there NONE? 

Let us reflect on our own behaviour before we cast the first stone, please.

Did we forget we are human beings?

Lest we forget to remember from National Geographic reports, even wild ANIMALS do not trespass and respect their won turf!

Enough is enough, let us mind our own business as one  homo sapiens homo-erectus ---to another!

Guest
7 May 2012, 8.16PM

it;s not your own home leh...

it's owned and belongs to HDB, the gahmen...

that's why it's 99-year lease agreement...

got penalty...
Guest
9 May 2012, 2.37PM

For the period as per contract, it is considered "your home" and "your responsibility" during the time you leased/rent it even though you do not own it outright.

I should think so.

Or else when a tenant/leasee messes up the leased home, who pays the fine? Do you expect to collect dues from the renter or the government

 Or if you stay at hotels, and the room is reported to be splashed with paint, do the police expect the registered guest to be accountable or the management or the government?

Go ahead, pick on the logic of the argument.

Guest
16 May 2012, 6.43PM
Not surprising.

I heard of stories of Malaysian who are Singapore PR buying resale HDB flat. They immediately rent out some or all the rooms and continue to stay in JB. They make trips to Singapore everyday by car or bike. This has been going on for a long time.

Government can actually catch them by doing a check. How many PR who recently bought HDB flat make frequent/daily trip between Singapore and Malaysia? If refine the search to last 5 years, I think we will catch a sizable number of these people. Just need some coordination between ICA and MND.

Another loophole is exploited by foreigners who know they are going to be posted overseas. They apply for Singapore PR to buy HDB flat. Once posted overseas, they can legally rent out their HDB flat, the entire unit. Best of both world. They don't pay tax since they are working overseas. There is capital appreciation. They get rental yield. HDB should have a rule. If a PR has not stayed in his HDB flat for more than 3 out of 1st 5 years, HDB should have the option to buy back the HDB at a discount of 20% to 30% to market rate or at the price the PR bought the unit, whichever is lower.

PR can also benefit from SERS. If lucky, they will stay in new HDB. If there is SERS, HDB should have a rule that allow them the option to buy back units owned by PR at a discount to market. The new unit can then be given to more deserving Singaporean. This is a time where we have insufficient housing for Singaporean. There should be more measures done to help Singaporean.

(Master)
gerrythinks
8 May 2012, 11.19AM
"Such illegal subletting makes a mockery of HDB’s initial lofty aims of providing affordable housing to the masses and tears down the social fabric of our nation as well which we have painstakingly built up over the years"

To be honest, I am not so sure..... In the current economic times and the high cost of living:

People with assets (eg homes and extra space) could or should be allowed a certain amount of flexibility shouldnt they?

I mean there could be rules set to protect "the social fabric" (as you put it), but I dont think such a clever practice to use "assets" to generate cash is a bad idea.

By all means stop the profiteers. But how about the average person (entrepreneur?) trying to make ends meet?

What you seem to be saying is that:

If you CAN help yourself get more income for your life, dont do it. Let the government find solutions. Go to your MP for handouts?

Where is the entrepreneurial spirit among Singaporeans? I can tell you---TRAPPED IN THE SANDPIT OF RULES AND REGULATIONS!

Lets think out of the box.

Can?


Guest
9 May 2012, 11.52AM
I think that subletting extra room(s) is fine, no point wasting the extra space.

But to sublet the whole flat tells me that the owner don't need the flat for residence, it's obvious profiteering.

Unless it's a private housing, I don't think anybody cares since it's not subsidized, but to sublet entire public housing is wrong.

HDB should ensure that entire flat is not subletted, the whole point of selling them the flat is to give them a roof over their head at subsidized rates, at resident's cost i.e. our money.
Guest
9 May 2012, 2.48PM

Should rules apply for specific or general cases?

When a man/ his family is posted abroad for 2 years, should the HDB flat remain vacant until his return? 

Guest
9 May 2012, 8.21PM
That is if specific case arises where that man can prove that he is genuinely unable to maintain residence here due to whatever reason, then I say that no point leaving his flat vacant since he is staying abroad for 2 years due to work, then by all means, rent it out for the extra cash.
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