Applicants may abuse new HDB scheme for couples: experts

The new Multi-Generation Priority Scheme (MGPS) by the HDB, which gives more chances for couples to own their own flats if their parents live with them may be abused, warned some property experts.

Although it aims to promote multi-generational family living, some could abuse the scheme by bidding for a popular unit in a mature estate and yet, not everyone would be living under the same roof. Moreover, finding conclusive evidence to prove the offence would be difficult.

The scheme, which is an enhancement to the Married Child Priority Scheme (MCPS), will be implemented from this month’s launch of new Build-To-Order (BTO) flats.

Under the previous policy, married couples who are first-time HDB flat buyers were given four ballot chances while second-timers had two chances, on the condition that they would choose to live with, or within two kilometres from their parents.

But the revised rules have increased the ballot chances to six and three respectively, if they were to live together with their parents. A minimum occupancy of five years is required. Additionally, both parties, when they are listed as the essential occupiers, can no longer own or buy other properties.

Colin Tan of Chesterton Suntec International expects the chances of abuse to be higher in applications for coveted areas like mature estates equipped with better amenities and transport links.

“There will be some who will resort to this in order to be successful. But it means everyone in the family who is involved will have to cooperate. The onus then is on the HDB to conduct spot checks regularly – not just once – to deter such abuse,” said Tan.

Source : PropertyGuru – 14 Mar 2012

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