Rising number of ex-homeowners applying for public rental flats a ‘worrisome’ trend: MND

Almost 6 out of 10 applicants used to have their own homes.

There is an increasing number of ex-homeowners who turn to public rental for their housing needs, the Ministry of National Development (MND) revealed yesterday.

In a speech at the Committee of Supply Debate yestards, Minister of State (National Development) Maliki Osman revealed that ex-homeowners make up 59% of public rental applicants, up from 52% just five years ago.

He said that these ex-homeowners have cashed out their flats for various reasons, such as inability to keep up with mortgage payments, failed business ventures, and the like.

“Some have benefited from one housing subsidy before and while they still qualify for another subsidised BTO flat, they have to pay a resale levy and are no longer eligible for generous first-timer housing grants. Some have enjoyed two housing subsidies and cashed out, quite substantially and more than once. They no longer qualify for subsidised flats and face an even steeper climb. As they are likely to be older, they also have problems getting sufficient housing loan. Also, many of them have children who are financially dependent on them,” he noted.

He cautioned that while the temptation to sell is a very real one in a rising property market, homeowners should resist the temptation and not cash out too early.

“With better outreach and community engagement, we hope homeowners will make informed choices and not be easily taken in by the promise of short-term gains without realizing the serious longer-term implications,” he said.