Mr Chua Kheng Wee Louis asked the Minister for National Development (a) in the past five years, what is the number of successful appeals by HDB flat owners against the sale of their flats which are compulsorily acquired by HDB; and (b) for unsuccessful cases, whether the compensation paid by the HDB is in line with or at a discount to the market valuation of the flat.
Mr Desmond Lee: HDB undertakes compulsory acquisition against flat owners who commit major infringements, such as the unauthorised renting out of their flat. HDB may also take compulsory acquisition action as a last resort, in mortgage arrears cases where the flat owners persistently refuse to resolve their arrears, or work towards a sustainable solution, despite the assistance given by HDB.
HDB’s compensation policy for flats that are compulsorily acquired takes into account various factors, including the severity of the infringement and the circumstances of the case, as well as the administrative and holding costs in acquiring the flat. The policy also ensures that flat owners who infringe the rules will not enjoy undue financial gains.
Flat owners who are aggrieved by HDB’s decision to compulsorily acquire a flat or the compensation amount can make a statutory appeal to the Minister for National Development. From January 2018 to June 2022, the Minister has acceded to 140 appeals against the compulsory acquisition of an HDB flat.
Ministry of National Development
3 October 2022