Over the last 10 years, HDB have gradually relaxed its subletting policy in line with the constant changes in our economy and population structure. With the influx of foreigners moving to work in Singapore and the rising housing rent, more and more HDB flat owners are renting out their HDB flat for a considerable rental income.
There are many owners who have not met the HDB subletting requirement discreetly rent out their flat by locking up one bedroom. Locking up one bedroom is a common “trick” of unscrupulous housing agents who are going for a one time deal. These agents usually convince the HDB flat owners to sublet their flat by locking up one bedroom to pretend that the owner is physically occupying the locked bedroom. However, HDB is aware of such arrangement and will impose heavy penalty or repossess the flat if owner is found to sublet their flat without approval or locking up one bedroom. It is never wise to challenge the law. So, find out the following HDB sublet eligibility requirement before subletting your flat:
1) You can apply to sublet your HDB flat after physically occupying the flat for not less than 3 years if,
- Your flat is purchased from the open market without CPF Housing Grant, and
- Your application to purchase the HDB flat was submitted to HDB before 30th August 2010
2) You can apply to sublet your HDB flat after physically occupying the flat for not less than 5 years if,
- Your flat is purchased directly from HDB, or
- Your flat is purchased from the open market with CPF Housing Grant, or
- Your flat is purchased from the open market without CPF Housing Grant but the resale application was submitted to HDB after 30th August 2010 (This is because there was a changed in the policy on 30th August 2010)
If you are still unsure if you are eligible to sublet the whole flat after reading this post, please consult an experienced property agent or write in to your HDB Branch Office for confirmation. Please note that you would need to obtain approval from your HDB Branch Office before you can sublet your flat.
We hope that this post will be helpful to you in planning your subletting. If you need any further information or free advise, please call us or send us an email.