RES exam question on HDB Policies: Mary and her husband, both Singapore Citizens, collected the keys to their BTO flat…
Mary and her husband, both Singapore Citizens, collected the keys to their BTO flat in January 2022. In 2025, with a second child on the way, they want to buy a $1,800,000 condominium and keep the flat to rent out. Which statements are correct? (i) They have not met the 5-year MOP, so they generally cannot rent out the whole flat yet. (ii) While the MOP runs, they cannot buy the condominium at all, whether or not they keep the flat. (iii) Being citizens, they would pay no ABSD on the condominium even while keeping the flat. (iv) Once the MOP is met, buying it while keeping the flat attracts ABSD at the 20% second-property rate.
- A(i) only
- B(i), (iii) and (iv) only
- C(i), (ii) and (iv) only
- D(i) and (ii) only
Show answer & explanation
Answer
C. (i), (ii) and (iv) only
Explanation
Issue: two separate barriers to buying a condominium while holding a new flat. Rule: an HDB flat owner may not buy private residential property, in Singapore or overseas, until the Minimum Occupation Period is met; this bar has applied since 30 August 2010, and the MOP for a Standard flat runs 5 years from key collection (hdb.gov.sg). The whole flat cannot be rented out before then either. Under the ABSD rates in force since 27 April 2023, a Singapore Citizen pays 0% on a first residential property and 20% on a second (iras.gov.sg). Application: with keys in January 2022 the MOP runs to January 2027, so in 2025 the purchase is barred, which is (ii). After the MOP, a couple who keep the flat own two properties and pay the 20% rate, which is (iv); the married-couple refund applies only if they sell the first home within 6 months. Conclusion: (i), (ii) and (iv).
Why the other options are wrong
- (iii) is the trap: citizenship lowers the rate but does not remove it on a second property.
Study the concept behind this question: HDB Standard, Plus & Prime Flats (the New Classification Framework)
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