I can relate to how challenging it can be for owners to sell their HDB flat under the Ethnic Integration Policy (EIP) quota.
In fact, I recall a recent case where a Shunfu Road HDB owner, who happened to be of Indian race, had difficulty selling their flat.
This restriction made the pool of potential buyers much smaller, which means that only Malays, Indians and Other Races can buy the flat.
Even though the nearby recent transactions are high, the same worries continue to persist among qualified buyers who worry they may not be able to resell their flat at a fair price in the future due to the EIP restrictions.
They would be asking me, “What if I buy high now, next time I can’t sell back this price because of the EIP?”
As a result, they made lower offers than the nearby transactions, and understandably, sellers are hesitant to let go of their homes lower than market price.
It’s great to see that the HDB has introduced the EIP buyback scheme to help owners who face genuine difficulties in selling their flats due to the ethnic quota.
However, there are terms & conditions involved, the owners must have fulfilled MOP of 10 years and made serious attempts to sell off their flats at market price for 6 months, supported by evidence.
And subsequently, if the buyback is being approved, the value is being determined by the Hdb appointed valuer. The owners will then given up to 3 months to decide whether to take up the buyback offer by Hdb.
The EIP was introduced with good intentions to encourage more social cohesion, however presently with the strict quota in place, it creates unnecessary stress instead.
If you know of anyone who needs help with selling their Hdb flats due to EIP issue, please feel free to contact me. I am able to help guide them and get the necessary paperwork done.
