What Is Your Next Step In The Property Market?
What Is Your Next Step In The Property Market? When you flip…
The PLH model is a public housing model aimed at keeping HDB flats in central areas inexpensive, accessible, and inclusive.
HDB will construct additional public housing in high-demand areas such as the city center and the Greater Southern Waterfront. These units will be offered under the Prime Location Public Housing (PLH) model, which is a new housing concept.
The Prime Location Public Housing (PLH) model is a public housing concept for Singaporeans that strives to maintain HDB houses in prime, central locations inexpensive, accessible, and inclusive.
This model was created after more than 7,500 Singaporeans, including academics and industry professionals, submitted their thoughts on the model over the course of nearly a year.
The PLH concept will be used for a limited number of public housing buildings in prime and central sites around the city, including the Greater Southern Waterfront. Existing flats will not be retrospectively fitted with the PLH model.
In the first project to be launched under the PLH model in Rochor, about 960 units of 3-room and 4-room apartments will be available for purchase. A total of 40 units of 2-room rental flats will be built as part of the project.
In addition to the large subsidies currently granted for BTO apartments, new PLH flats are priced with extra subsidies. PLH flat pricing is kept accessible for a wide spectrum of Singaporeans thanks to these extra subsidies.
When PLH flat owners sell their flats, they will pay a percentage of the selling price to HDB, which will be proportional to the amount of additional subsidy received.
On top of the large subsidies currently offered for BTO flats, new PLH flats are priced with extra subsidies. These extra subsidies put PLH flat costs within reach of a broad variety of Singaporeans.
When PLH flat owners sell their flats, they will pay a percentage of the selling price to HDB, which will be proportional to the amount of the additional subsidy offered. This is to be equitable to those BTO flat owners who do not benefit from the higher subsidies. For the River Peaks I and II pilot projects, this payment is set at 6% of the higher of the selling price or value.
All prevailing grants such as the Enhanced CPF Housing Grant (EHG) of up to $80,000, will continue to apply for eligible families who buy a PLH flat.
To purchase a new PLH flat, you must fulfil the existing BTO eligibility requirements, which include being a Singaporean family and earning up to $14,000.
In addition to the original purchase, subsequent resale PLH unit buyers will be required to fulfil the current eligibility requirements for the purchase of BTO apartments. This ensures that PLH flats remain inclusive and accessible to a diverse set of future flat purchasers. Without these restrictions, the resale costs of these prime location flats may increase beyond the grasp of many Singaporeans, and only the wealthy would be able to purchase them in the long run.
The following is a list of essential eligibility criteria for purchasing 3-room and bigger flats:
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Yes, flats will continue to be reserved for Married Child Priority Scheme applicants (MCPS). Individual PLH project priority quotas will be modified to allow Singaporeans whose family members do not live nearby to dwell in prime locations as well.
Due to the prime locations and additional subsidies granted for PLH flats, PLH flat owners will need to dwell in their flats for at least 10 years before selling or investing in a private residential property. This policy aids in the protection of PLH flats for families in true need of housing while also discouraging speculation.
Even after MOP, owners of PLH flats are not permitted to rent out entire flats.
For a comprehensive guide, check out this video:
I have collated all the FAQs for your convenience:
A1. If you have existing flat applications, you may submit an application for a new sales exercise as long as you have not booked a flat. Should you manage to book a flat, your other applications will be cancelled automatically. To manage repeated non-selection of flats which will deprive other applicants with urgent housing needs, please note that application restrictions will apply if you choose not to book a BTO or SBF flat twice after successfully balloting for it.
A2. You can only submit one application for one location and one flat type during the sales launch.
A3 If you wish to make changes, you will first need to cancel your existing application, and then submit a new application before the application period closes. You will have to pay the administrative fee of $10 for any new applications. You are not allowed to make changes to your applied location or flat type once the application period has closed.
A4 If you had previously enjoyed any housing subsidy, you will have to pay a resale levy to purchase a flat from HDB. Find out more about the resale levy.
If you have questions or are keen to know more? Reach out to me via WhatsApp or book an appointment with me. I’ll be sure to help you out.
