HDB Ethnic Quota: How it Affects Home Sellers and Buyers

Time to get acquainted with HDB’s EIP!
04 Jun 2019 Language: English

New to HDB home selling? Meet the all-important ethnic integration policy (EIP), one of the first few things every seller needs to find out before putting their home on the market as it dictates the pool of eligible buyers for the flat. If this is all new to you, here’s a quick crash course about this HDB policy.

What is Ethnic Quota?

The EIP or more commonly known as the ethnic quota was imposed by the HDB to maintain a well-balanced distribution of the races across HDB blocks and estates. The HDB-prescribed quota ensures that all ethnic groups (i.e. Chinese, Malay, Indian and other ethnic groups) can’t exceed the percentage allotted to them.

Frequently Asked Questions by Sellers

How do I find out if my buyer is eligible to buy my flat?

You can check on your buyer’s eligibility instantaneously by keying in his or her particulars (such as ethnic group and citizenship) on the HDB resale portal. It is important to note that the ethnic quota of an HDB block is updated on a monthly basis.

What if I can’t find the right buyer?

While the quota helps to ensure diversity of races in our residential communities, a new unforeseen problem has arisen in the form of HDB homeowners who struggle to sell off their home to the right buyer from the eligible ethnic group, especially for those who have sold their home and are in need to find a buyer within six months. So what if you can’t find the right buyer in time? According to Minister for National Development Lawrence Wong, sellers can submit a time extension request to HDB. This will allow more flexibility for sellers to find the right buyers without the anxiety-inducing time crunch.

Frequently Asked Questions by Buyers

What If I really love to buy this home but I am not eligible?

EIP is updated on the first of every month. If you have enough time, our property agents recommend waiting until the ethnic quota of that particular unit opens up by waiting for the subsequent month and trying your luck then. However, they also urge to manage one’s expectations as a year can go by without any changes to the quota.

What happens if, after waiting for one month, I am still not eligible?

Our experienced property agents recommend cutting your losses early to consider other units if you are not willing to wait. When a unit is constrained by the ethnic quota, it usually takes a long time for it to change. On top of that, there'll be more fishes in the sea as more units will be up for sale after a month, essentially increasing the chances of you falling in love with another flat. You’ll never know until you try!

Sellers, don’t be dismayed by the EIP as our team of highly efficient, in-house agents are here to help you with your selling journey. Buyers, you can start your home search now by browsing thousands of genuine and unique resale flats available on our platform. If you require more assistance on selling or buying your flat, feel free to find out more about our Fixed-fee Agent Services by calling 6886 9009 today!

Source: ChannelNewsAsia


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