Housing Board flats are subsidised by the Govt because they are community properties sold under lease agreements that contain an assortment of rights that fall short of full ownership. This legal void leaves residents of Housing Board units with a great deal of limitations over their rights.
Public flat dwellers are likely to have their homes confiscated if they fail to comply with the restrictive terms and conditions since they are only tenants, and their landlord is the HDB.
The fundamental differences between a condo and a HDB flat are neither academic nor insignificant. Since buyers of HDB units have only purchased a 99-year lease, they have no share of the land where their blocks stand on and no strata title.
Unlike owners of leasehold condos, HDB dwellers are not permitted to use even their fully paid-up flats as collateral to banks, to raise credit facilities for private loans. HDB also refers to flat owners as tenants, and those who rent from the owners as sub-tenants.