Oral Answer by Ministry of National Development on Ethnic Integration Policy

Oct 2, 2018

Mr Saktiandi Supaat: To ask the Minister for National Development 

(a) whether the Ministry will issue monthly guidelines for buyers and sellers of HDB flats under the Ethnic Integration Policy (EIP) on the pegging of the fair market value of these flats at a certain percentage of the last transacted price in the open category; and

(b) in the past three years, what is the average discounted price of EIP flats transacted compared to prices in the open market.

Mr Lim Biow Chuan: To ask the Minister for National Development whether HDB will consider introducing a policy akin to the Lease Buyback Scheme where HDB buys back flats belonging to non-Chinese flat owners when these owners are unable to sell their flats due to the Ethnic Integration Policy.


The Ethnic Integration Policy (EIP) was introduced in 1989 to ensure a balanced mix of ethnic groups living in HDB estates, so as to promote racial harmony and strengthen social cohesion.  It applies to the sale and purchase of all new and resale HDB flats, and is implemented for all ethnic groups. 

The saleability of a flat in the open market is dependent on many factors, not just the EIP.  While home owners may have their own expectations of how much their flat can sell for, flat attributes such as location, storey height, physical condition, remaining lease and market sentiments would naturally be considered by prospective home buyers.  To help home owners and buyers make an informed decision in their price negotiation, HDB provides daily updates of transacted prices of resale prices at the HDB InfoWEB.

For those who are unable to sell their flats, HDB may grant them an extension of time and advise them to be realistic with their asking prices.  HDB will continue to exercise flexibility for households with exceptional circumstances.

The EIP is an important policy that is applied to all ethnic groups consistently.  There are no plans to buy back flats from flat owners who claim that they are unable to sell their flats due to the EIP.