Minimum Occupation Period for non-subsidised flats revised upwards

The Minimum Occupation Period (MOP) for the resale of non-subsidised HDB flats has been revised upwards to three years.

Announcing the change in Parliament on Friday, National Development Minister Mah Bow Tan said the objective of such a move was to reinforce the idea that HDB flats are for owner-occupation.

He stressed that flats are not meant for speculation or short-term profit.

And with the extension of the MOP, he said the demand in the resale market will more accurately reflect the interest from buyers who are buying flats for occupation.

Non-subsidised HDB flats refer to resale flats bought without a CPF Housing Grant.

Currently, those who buy such flats with an HDB loan are subjected to an MOP of 2.5 years.

Those who take a bank loan or do not take a loan at all are subjected to an MOP of one year.

The revised MOP takes effect from Friday but existing lessees of non-subsidised flats will not be affected.

Source : Channel NewsAsia – 5 Mar 2010

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