HDB Minimum Occupation Period MOP Explained Simply
Planning to submit an application for a BTO flat in an upcoming BTO exercise or planning to purchase a Resale HDB flat? Before putting down your option fee to reserve your dream home, it's crucial to consider your willingness to reside in that particular unit and neighbourhood for at least 5 years. This requirement is known as the Minimum Occupation Period (MOP) the Housing and Development Board's (HDB), which states that the complete sale or rental of your HDB flat is prohibited until five years after key collection.
The duration of the HDB MOP varies based on the type of flat and the acquisition method. For most flats, including new HDB flats (BTO, Executive Condominium, and Design, Build and Share Scheme), the MOP is five years. Exceptions include Prime/Plus Location Public Housing flats with a 10-year MOP and flats under the Fresh Start Housing Scheme, which have a 20-year MOP. Flats acquired through the Selective En bloc Redevelopment Scheme (SERS) can be sold after five years, aligning with the standard MOP for most HDB flat buyers.
In this guide, we will explore all aspects of the HDB MOP, covering permissible and restricted actions during this period, as well as any exclusions to the rule.
Understanding HDB MOP
The HDB MOP serves as a restriction, prohibiting the complete sale or rental of the entire flat during the initial five years of ownership. Additionally, during the MOP period, purchasing another private property is not allowed. This rule aims to prevent the immediate resale of newly acquired flats for a profit, thereby curbing speculative behavior in the market.
It's essential to note that the HDB MOP begins on the day keys are collected, excluding periods when the flat is not occupied. For instance, if you reside in your flat for four years, spend a year abroad, and return, you must reside in the flat for an additional year before selling, renting, or purchasing another private property.
HDB MOP Duration by Flat Type
New HDB flats (Standard Model BTO, EC, and DBSS): 5 years
New HDB flats under the HDB Prime or Plus Model: 10 years
Resale HDB flats (2-room or larger, applied on or after 30 August 2010): 5 years
SERS flats: 5 years after key collection
Flats under the Fresh Start Housing Scheme: 20 years
*Exceptions exist for resale flats, such as 1-room flats or those bought before 30 August 2010 without CPF Housing Grants. More detailed information on HDB MOPs can be found in HDB’s Website.
Restrictions During HDB MOP
Throughout the HDB MOP, listing the flat for sale on the open market or renting out the entire flat is prohibited. Renting individual rooms is allowed, provided one bedroom is occupied by the owner(s), and each rental period must be at least six months. Engaging in illegal practices, like pretending to reside in a locked room while renting out the entire flat, is strictly forbidden. Purchasing any form of private property is also prohibited during this period. HDB is extremely strict with this and anyone caught breaking the rules is dealt with no mercy. Just recently a 5 Room HDB unit was repossessed by HDB due to the owner breaking HDB rules.
Post-HDB MOP
Once the MOP requirements are fulfilled, selling the flat, renting out the entire flat, and purchasing another private property become permissible in most cases. However, for flats sold under the HDB Prime or Plus Housing Model, renting out the entire flat remains prohibited even after completing the extended 10-year MOP.
Significance of HDB MOP
In Singapore, HDB flats primarily serve as housing, not investments. The MOP safeguards against immediate resale, preventing property investors from driving up public housing prices. Adjustments to the MOP, as seen in the PLH Model, are implemented to curb specific behaviors and maintain housing affordability.
HDB MOP Exceptions
Under certain special conditions, selling the flat back to HDB before the MOP ends is possible. Certain conditions could include bankruptcy, divorce, inability to pay the home loan, terminal illness, or loss/renouncement of citizenship. Approval in on a case by case basis, and additional requirements apply for bankruptcy and divorce cases.
Checking HDB MOP
To determine your MOP, visit My HDBPage using your SingPass. Under "My Flat," navigate to "Purchased Flat > Flat Details > Minimum Occupation Period (MOP)."
Post-MOP Considerations
After fulfilling the MOP, check Ethnic Integration Policy (EIP) and Singapore Permanent Resident (SPR) Quotas before selling. EIP maintains ethnic balance, and SPR quota ensures integration. Malaysians are exempt from the SPR quota. Check EIP/SPR quotas on HDB's Resale Portal after registering your Intent to Sell.
These are most of the important points to note for MOP!
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