The Ministry of National Development will introduce a new framework to limit the number of HDB flats that can be rented out to foreigners. This is in response collated that there could be too many foreigners living in a particular HDB block and is particular about HDB rental ratios.
HDB Rental Ratio
Although the ratio has yet to be determined, it is most likely that the ratio will be different from the existing ratio used to calculate for purchase of HDB flat. This is because there is more significant percentage of PR and as well as foreigners who are currently renting a HDB unit. In particular, foreigners are not allowed to own HDB and therefore the subletting ratio will be significantly different. The Minister of National Development Khaw Boon Wan also noted that he is taking note of the need balance the impact on existing HDB flats owners that need the rental income.
Rental income from current HDB owners will be affected. In the case where if the HDB rental ratio for PR is already fuifilled, the HDB owner subsequently will only be able to look for locals or foreigners for rental. As there are a significant number of foreigners renting HDB flats in Singapore, should the quota for foreigners be filled, the owner may have to leave the HDB flat vacant or renting out at below market rate to entice tenants. The measure will be more favourable for tenants as they have the bargaining chip of asking for lower rent.
Guides on the renting ratio for HDB
The subject of maintaining the ratio is emhpaized by the local government as Singapore comprises of many ethnic race and religion. It is noted that there should not be a heavy concentration of a particular race in a HDB block or region.
Riverbank Condo at Fernvale Sengkang will be subjected to the ethic hdb rental ratio as it is a private property.