The new measures introduced by HDB on Aug 30 has caught out some HDB owners who were considering investing in land banking schemes. Under the new property rules, HDB flat owners are not allowed to private property – local or overseas – within the minimum occupation period (MOP). HDB has recently clarified that his ruling applies to landbanking as well. An interest in residential land, even vacant land, constitutes ownership of private property, the HDB has said.
This means that if you have already investing in land overseas, you cannot buy a HDB resale flat unless you divest your investments within six months. Similarly, if you are living in a HDB flat that is still within the new Minimum Occupancy Period of 5 years, you cannot invest in land banking.
This new clarification by HDB has left some land banking investors questioning its rationale.
One investor, who wanted to be known only as Mr Lim, said landbanking should be seen as a real estate investment scheme rather than as having an interest in private residential property.
‘We are at the very early stages of the real estate life cycle, before even any dwellings are built… It is more of an investment where you get in and then get out. I don’t think landbanking should be covered under HDB’s rules,’ he added.
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