HDB flat owners who encounter difficulty in selling their flats due to Ethnic Integration Policy (EIP) quotas restriction may appeal to HDB for assistance.
Ethnic Integration Policy (EIP) was introduced in 1989 to foster greater social cohesion and to maintain a diverse ethnic mix across HDB blocks and neighbourhoods. Singaporeans understand the importance of the EIP in promoting racial harmony.
HDB has been empathetic and lenient towards EIP-constrained flat owners by allowing more time for them to sell their existing flat if they have purchased another one. At times, HDB has waived the EIP limits to allow flat owners to sell their flat to buyers from any ethnic group.
HDB will review requests for buyback assistance on a case-by-case basis and there are criterias to be met.
First and foremost, you must fulfilled the Minimum Occupation Period and owned the flat for at least 10 years.
Secondly, you must prove that you engaged a property agent and you made multiple attempts to sell your flat at a reasonable asking price while constrained by the EIP quota. In setting a reasonable asking price, flat owners can take reference from recent transaction of HDB flats.
Thirdly, you must remind your property agent to keep monthly records of their sales marketing including but not limited to the property advertisement, selling price, duration and house viewing records. These details will be submitted to HDB when you request for a buyback of your HDB flat.
If your buyback application is approved, HDB will appoint a professional licensed valuer to value your flat. You can be assured that the valuation will be fair and just. Because the valuers are licensed by the Inland Revenue of Singapore (IRAS) and they are members of the Singapore Institute of Surveyors and Valuers (SISV). They will make their assessment based on a set of valuation principles. HDB will then determine the buyback price and make an offer to buy your flat at a fair market price.
Flat owners are given three months to consider before they accept the buyback offer. If you reject the offer, you will not be eligible for buyback assistance for a period of 12 months after the offer lapses.
The flats bought back by HDB will form part of HDB’s housing stock and will be offered for sale to the public through open booking or the Sale of Balance Flats exercises.