What is the Prime Location Public Housing (HDB PLH) model?
The PLH model, a public housing initiative, was introduced to ensure that HDB flats in prime and central locations, including the city centre and the Greater Southern Waterfront, remain affordable and accessible to all Singaporeans.
Previous HDB regulations unintentionally led to a “lottery effect,” where individuals fortunate enough to secure a flat in a prime location could reap significant profits by selling it after the Minimum Occupation Period (MOP). Consequently, homebuyers actively sought these flats intending to flip them for substantial financial gains once the MOP expired.
To address this issue, the government implemented the PLH model to discourage speculative behaviour. By extending the MOP to 10 years, the aim was to dissuade individuals motivated solely by financial gain from purchasing these flats.
Instead, the focus shifted towards cultivating a culture where buyers are genuinely committed to long-term residency and stability.
This model was developed through a comprehensive process of consultations involving the public, experts, and industry stakeholders.
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What are the eligibility requirements for the Prime Location Public Housing (PLH) model?
The eligibility requirements for purchasing new and resale PLH flats are similar to the eligibility conditions for acquiring new flats directly from HDB.
Related article: Here’s why you may not want to get the PLH flat if you’re thinking of upgrading in future
Can I rent out my Prime Location Public Housing (PLH) flat?
Unlike typical BTO flats, where the entire unit can be rented out after the 5-year MOP, PLH model projects restrict renting out the whole flat even after the extended 10-year MOP. However, renting out individual rooms within the flat is still allowed.
If you plan to wait for the 10-year MOP to expire and rent out the entire flat, expecting a favourable rental yield, we regret to inform you that this option is unavailable under the PLH model.
Here is the comparison between HDB BTO and PLH flats:
- Resale of flat: Permitted after 5-year MOP for BTO, 10-year MOP for PLH flats.
- Buying another private property: Permitted after 5-year MOP for both BTO and 10-year MOP for PLH flats.
- Renting out the whole flat: Permitted after 5-year MOP for BTO flats only; not allowed for PLH flats.
- Renting out rooms: Permitted for both BTO and PLH flats.
The information provided was accurate at the time of publication. For the latest changes and updates, you can check the official websites.
