{"id":71763,"date":"2023-12-21T17:25:16","date_gmt":"2023-12-21T09:25:16","guid":{"rendered":"https:\/\/www.99.co\/singapore\/insider\/?p=71763"},"modified":"2023-12-21T17:25:16","modified_gmt":"2023-12-21T09:25:16","slug":"new-occupancy-cap-for-larger-residences","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/new-occupancy-cap-for-larger-residences\/","title":{"rendered":"Easing rental pressure in Singapore: New occupancy cap for larger HDB flats"},"content":{"rendered":"
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In a significant move, Singapore’s Housing and Development Board (HDB) and the Urban Redevelopment Authority (URA) have announced an increase in the occupancy cap for larger public flats and private homes<\/a>. This change, effective from 22 January 2024 to 31 December 2026, allows up to eight unrelated individuals to live in these larger residences, aiming to meet the burgeoning demand for rentals.<\/p>\r\n

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How did the policy come to be?<\/h3>\r\n\r\n\r\n\r\n

The need for this policy shift stems from the sharp rise in residential rents since 2022<\/a>, attributed to market tightness caused by COVID-19 disruptions and robust rental demand. The policy covers HDB flats that are four-room or larger<\/a>, as well as living quarters in HDB commercial properties of equivalent size, and private residential properties of at least 90 square meters.<\/p>\r\n

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Details of the policy<\/h2>\r\n\r\n\r\n\r\n

The Singaporean government’s decision to increase the occupancy cap in larger residential units is a strategic response to the growing pressures in the rental market. This temporary policy is designed to ease the rental demand by allowing up to eight unrelated individuals to reside in larger public and private residences. Previously, the limit was capped at six unrelated individuals, indicating a significant shift in housing policy to accommodate changing market needs.<\/p>\r\n\r\n\r\n\r\n

Policy scope<\/h3>\r\n\r\n\r\n\r\n

Under this new regulation, the scope of properties affected includes HDB flats<\/a> that are four-room or larger and living quarters in HDB commercial properties of a similar size. Moreover, the policy extends to larger private residential properties, specifically those at least 90 square meters. This broad coverage ensures that a substantial portion of the housing market can contribute to alleviating the rental demand, particularly in areas where larger families or groups seek affordable living solutions.<\/p>\r\n

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Occupancy cap for HDB flats and bedrooms being rented out. Image credit: HDB.<\/figcaption><\/figure>\r\n
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Occupancy cap for private residential properties being rented out. Image credit: HDB.<\/figcaption><\/figure>\r\n\r\n\r\n\r\n

Application via HDB and URA<\/h3>\r\n\r\n\r\n\r\n

To comply with the new occupancy cap, residential property owners who currently accommodate up to six unrelated people must apply to the respective authorities \u2013 HDB for public flats and URA for private residential properties. This process is crucial to ensure that all changes in tenancy adhere to the updated regulations and maintain the integrity of the housing system. The application encompasses not only the additional occupants but also the property owners and existing tenants, underscoring the comprehensive nature of this policy.<\/p>\r\n

Read more:\u00a0 <\/strong>The URA Master Plan 2025: A glimpse into Singapore’s future<\/a><\/em><\/p>\r\n\r\n\r\n\r\n

Policy objective<\/h3>\r\n\r\n\r\n\r\n

Minister for National Development Desmond Lee emphasised that this measure is specifically tailored for larger properties<\/a>, as they can accommodate more occupants with minimal impact on the surrounding community. The goal is to maintain a conducive living environment for everyone, balancing the need for increased housing capacity with the quality of life for residents. This decision reflects a thoughtful approach to urban planning, considering the immediate needs of those seeking rental accommodation and the long-term sustainability of living spaces.<\/p>\r\n\r\n\r\n\r\n

In pursuit of flexible housing options<\/h3>\r\n\r\n\r\n\r\n

Furthermore, this policy reflects the government’s commitment to addressing the diverse needs of Singaporeans. Whether it’s families waiting to move into new homes or younger individuals seeking their own space, the increased cap aims to provide more flexible housing options. This measure, while temporary, is part of a larger strategy to ensure that the housing market remains responsive and adaptable to the evolving demands of the population.<\/p>\r\n

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Implications for the rental market<\/h2>\r\n\r\n\r\n\r\n

Industry experts like Mr Lee Sze Teck from Huttons Asia suggest that while the move might offer a short-term fix to stabilise the rental market<\/a>, it’s unlikely to significantly impact rents due to the scarcity of large private and HDB homes. Ms Christine Sun from OrangeTee and Tie highlights the potential benefits of reducing living costs and attracting foreign workers, essential in sectors like manufacturing and retail. Additionally, this policy could result in a slight drop in overall rental volume, but potentially increase the resale prices of larger condos and HDB flats.<\/p>\r\n