Buyers of non-subsidised HDB resale flat must now occupy their flats for at least three years before they can sell, under new rules unveiled yesterday.
This is up from 2 and 1/2 years for buyer with HDB loans and one year for buyers with bank loans or no loan.
The move, effectively yesterday is seen as a goverment effort to curb speculative buying and selling of public housing.
Home hunters have expresses dismay in recent months that speculators may be pushing up HDB resale flat prices.
Property Consultants said the move is set to nip speculation in the bud but is not likely to result in lower flat prices.
The move comes after an HDB Study found that a growing number of flats owners were selling flats within 3 years. In late January, National Development Minister Mah Bow Tan flagged a review by HDB of its rules, with a view to stamping out possible speculation.
In Parliament yesterday, Mr Mah said more flats owners had been selling flats as soon as the minimum period was up, although the numbers were not large. He added, " However, if the trend continues, buyers who genuinely need housing could be crowded out."
He was responding to MP Ang Mong Seng's request for a review of the one-year minimum period applying to those with bank loans or no loan.
"HDB flats are provided primarily for owner-occupation and not speculative profit or rental return, " said Mr Mah. HDB said in a statement that the change would more accurate reflect interest from buyers who wish to occupy flats. Different rules apply to subsidized buyers who received HDB grants.
Home hunter Sofian Buang, 33 a loading officer, said:"My biggest concern is getting a roof for my family, now that i have a daughter. I am looking for a resale flat to settle in, not to sell or rent out. "
ERA Asia-pacific associate director Eugene Lim said the change would remove buyers who want to flip HDB flats after a year. " With a smaller group chasing after HDB resale flats, price increase will slow down, " he said.
Demand for a resale flats outweighs supply so price will still rise, but perhaps  at a slower pace, said C&H Realty managing director Albert Lu. Mr Steven Tan, executive director Orange Tee residential divisions, said the change would cut speculation but that the Government should look at private property owners buying HDB flats to rent out right away.
If demand is growing and fewer people choose to sell because they want to lease their flats out, price will rise, he said.
Mr Mah said that of the 682,000 flats that are eligible for subletting, only 3 percent are sublet, suggesting that most flats owner are buying their flat for occupations, and not rental.
Amid concerns of runaway HDB Prices, other MPs yesterday raised questions including a possible ban on some buyers. "There is a populist suggestion that we should ban some private property owner from buying HDB flats, said Mr Mah. But if the government did so, what about HDB owners buying private property, he said. Most resale flat buyers are citizens who do not own any private property , he said that there was no evidence that specific buyer groups, like PRs and private property owners, were driving up prices.  He said buyers who did not want to pay very high prices could walk away.
Some other key changes unveiled yesterday include allowing upgraders and those who downsize to apply for a second concessionary HDB loan. This could push up resale activity for smaller flats in the resale market, said PropNex Chief Mohamed Ismail.
The HDB Study found that last year, 9 percent or nearly one on 10 resale flats sold had been owned for under three years, Between 2005 and 2007, the figure was just 6 per cent of sales.

Reported from The Straits Times on 6th March 2010