Do you know Singapore has a minimum occupation period in Singapore (MOP)? MOP is the time someone must stay in a flat before selling. It lasts for five years from the day of collection of your HDB keys.
This article lays out six essential facts to know about MOP.
1. MOP Extends If You Rent an Entire Flat for Special Reasons or Go Overseas
You can agree with a real estate agent to get HBD approval allowing tenting out of an entire flat when you cannot live there.
However, the minimum occupation period in Singapore extends when you are away and renting out the home. For instance, you can get approval to rent out an entire flat when relocating abroad for a year. MOP will extend by a year. You can also leave the flat unoccupied for a period, such as when going on holidays, without counting the MOP duration, provided the vacancy period is reasonable.
2. Parents and Children Should Abide by Distance Limit
Parents and their children should adhere to distance limits during the MOP when applying for a PGH (Proximity Housing Grant) or MCPS (Married Priority Scheme). Proximity Housing Grant (PHG), introduced in 2015, encourages parents and children to live close. Families that live together or within a 4-kilometre radius can get up to $30,000 off the flat resale price. The purpose is to encourage families to live close and fulfil the intention of the grant.
MCPS allows first-time couples to receive more priority for Build to Order (BTO) flat allocations if they move to live within 4 kilometres of their parents’ homes. Parents who help couples qualify for BTO using MCPS must live within 4kms of the new flat of their children during the duration of their MOP. It starts after collection of to the new flat. It is crucial to determine if families plan to move within five years before applying for MCPS or PHG.
3. 3Gen Flat Cannot Rent Out Rooms MOP
3Gen flats are the second-largest type of flat because they have two master bedroom suites. A 3Gen flat occupant cannot rent out a room during the five-year minimum occupation period in Singapore, as with HBD flats.
4. SERS Resident Rehoused Flat Has a 7-Year MOP
SERS, introduced in 1995, helps redevelop older housing estates. Homeowners in estates selected for SERS get market-rate compensation and an opportunity to buy a new 99-year lease at designated replacement sites. They can get a grant of up to $30,000 to support the purchase of a replacement flat. MOP for a replacement flat extends from 5-7 years.
5.No MOP for 1 Room Resale Flats Bought Without CPF Housing Grant
MOP rules would not apply to buyers of a 1-room flat from the resale market if they did not use the CPF housing grant. However, they cannot rent out a room soon after purchase. They are allowed to rent out a whole to a tenant housing a maximum of four occupants.
6. Fresh Start Housing Scheme Allows 20-Year MOP
Fresh Housing Scheme introduced in 2016 provides financial support to second-time homeowners living with young children in public rental flats. The financial support helps them buy an HBD flat. HBD introduced a 20-year minimum occupation period in Singapore to ensure actual homeowners benefit from the scheme. The MOP is reasonable since the 2-room Flexi flat has a shorter 45-65 year lease and not the frequent 99.
You can learn more about properties, real estate, and MOP from Andik Imran. Imran is a property and real estate agent in Singapore and the founder of realestatedad.sg. I assist Singaporeans in asset, retirement, and legacy planning and help my clients buy and sell homes. Call 94508732 or visit for more https://realestatedad.sg/.
Engage a professional Singapore real estate agent
ANDIK IMRAN | BSc Business
CEA Reg No: R061801F
andikimran@realestatedad.sg
9450 8732
PropNex Realty Pte Ltd
