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SINGAPORE: The recent changes to dual home ownership aimed at cooling the sizzling property market have left some owners in a bind.
From 30 August, private property owners who want to buy a flat from the Housing and Development Board (HDB) would have to sell their private property within six months.
The regulation also applies to those who own property outside of Singapore.
For some, owning two properties is a retirement strategy - one to live in, and the other for rental income.
42-year-old "Denise" - not her real name - who currently lives in a condo was hoping to do just that.
In late July, the single mother of two who asked to remain anonymous started the process to buy a 3-room resale HDB flat.
She had exercised her option to purchase a flat on the 8th of August by paying a 4,000-dollar deposit in addition to the option fee of $1,000 paid earlier. A bank loan was secured on the 18th.
But drawn-out negotiations with the seller meant an application could only be submitted on 30 August - the day the changes took effect.
Denise has since written to HDB to appeal.
For home owners who started the resale application process weeks ago, the changes to dual home ownership came as a shock. They could be penalised thousands of dollars should they back out of the deal now.
"I'll lose my deposit and the bank will penalise me a few thousand dollars because we didn't exercise the contract that we signed. HDB has a rule that says if we do not buy, the seller can resell to the market. So whatever difference, we have to compensate the seller," said Denise.
This means Denise would have to pay the seller the difference that may arise if another buyer offers a lower price than what she had offered.
One real estate agency has received more than ten enquiries since August 30 from those caught in a similar situation has advised its clients who have proper documentation to appeal.
Mohammed Ismail, CEO of Propnex said, "People who are affected in such a transition, as long as they can write in the HDB, showing the necessary documentary proof, for example, somebody who has paid a deposit of $1,000 and the cheque has been cleared well before the new ruling came into play, HDB will judge the merit of each individual case"
As for the rule that owners of properties overseas cannot own a resale HDB flat, experts say the move is aimed at removing disparities in the market.
But market watchers point out that it will be difficult to check if home owners have disposed of their foreign property before acquiring a flat in Singapore. - CNA/fa
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