What is the HDB Ethnic Integration Policy?

The Ethnic Integration Policy sets ethnic quotas per HDB block and neighbourhood. Once a group's quota is full, a seller from that group can only sell to a buyer from another group, which can reduce the resale price of an affected unit by roughly 3 to 7 percent.

What is EIP? — Singapore property glossary

What is EIP? The Ethnic Integration Policy, EIP, sets ethnic quotas for Chinese, Malay, Indian and Other groups in each HDB block and neighbourhood, introduced in 1989 to prevent ethnic enclaves. Once a group's quota in a block is reached, a seller from that group can only sell to a buyer from another ethnic group, which narrows the buyer pool.

EIP is a purchase and resale eligibility rule for HDB flats, applied at block and neighbourhood level. It does not restrict who can rent a flat; a landlord's ethnicity preference when renting out a unit is a private choice, not an EIP quota, and the two should not be confused.

The practical effect for sellers is on liquidity and price. HDB's own guidance and market data show that blocks nearing a full ethnic quota can transact at roughly 3 to 7 percent below comparable unconstrained blocks, because the eligible buyer pool for a seller from the constrained group shrinks. Buyers and sellers can check a specific block's current quota status on HDB's online enquiry portal before committing to a purchase or listing a resale flat.

Because quota status can change as a neighbourhood's ethnic composition shifts, checking it is a step worth taking early, not something to discover after an Option to Purchase is already signed.

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Winfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd (CEA Licence No. L31010886H). CEA R073319H. This page is for general information only and does not constitute financial, investment, or legal advice. Verify current figures with IRAS, HDB, CPF Board, or MAS before making any decision.

EIP

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