The National Development Ministry said prices of resale Housing Development Board (HDB) flats are determined by many factors, and that the Ethnic Integration Policy (EIP) is only one of them.
Since 1989, there have been ethnic quotas in HDB estates to prevent racial enclaves from forming.
The ministry said as of September, only 14 per cent of 162 neighbourhoods have reached their quota limits.
It added that the government does not buy back flats from those who are eligible to sell them in the open market, and that sellers affected by the quota limits “should have no problem” finding buyers so long as they are realistic in setting their asking price.
Parliamentary Secretary for Ministry of National Development Maliki Osman said: “The assumption is that if we take out the EIP component, then they will be able to sell at a higher market rate.
“But this is not necessarily the case, because there are sellers who are not affected by the EIP restrictions, (and) who are selling below market rates too.
“And we see also sellers who are affected by EIP restrictions, who are able to sell at way above market valuation”.
Dr Maliki made the comments in response to a question by Nominated MP Viswa Sadasivan, who noted that some ethnic minority flat owners have had difficulty selling their units.
Source : Channel NewsAsia – 16 Sep 2010