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Fewer private property owners buying resale HDBs valued at S$1 mil or more since wait-out period started

Currently, such owners must wait out 15 months from the disposal of their private property before they may buy a non-subsidised resale HDB flat.

Housing Development Board (HDB) apartments in Singapore's east side, illustrating a story on private property owners buying resale HDB units.
Fewer private property owners are buying resale HDBs valued at S$1 mil or more since wait-out period started. (PHOTO: Getty) (Carlina Teteris via Getty Images)

SINGAPORE — Since the wait-out period for current private property owners and former private property owners (PPOs/ex-PPOs) to buy a resale flat was introduced, the proportion of such buyers buying flats sold for a million dollars or more have decreased significantly.

Since 30 September 2022, PPOs and ex-PPOs must wait out 15 months from the disposal of their private property before they may buy a non-subsidised resale flat.

In a written answer to parliamentary questions asked by People's Action Party (PAP) Member of Parliament (MP) Yip Hon Weng, the Ministry of National Development (MND) noted that since the wait-out was implemented on 30 September 2022, the "proportion has fallen by more than half, to about 14 per cent, between 30 September 2022 and 31 December 2023".

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"Prior to the implementation of the 15-month wait-out period, PPOs/ex-PPOs constituted about 34 per cent of buyers of flats sold for a million dollars or more, between 1 January and 29 September 2022," MND said.

Yip had asked whether the ministry will consider assessing the effectiveness of cooling measures implemented to address concerns about million-dollar and high-value resale HDB flats, particularly the extended waiting period for private property downgraders.

The MP also asked whether this measure has influenced the quantity of million-dollar or high-value resale transactions and, if so, to what extent.

Rate of increase of HDB resale prices continue to moderate

"This measure was introduced to moderate the demand for resale flats and ensure that they remain affordable, especially for first-timers. To support seniors' retirement needs, Singapore citizens (and their spouses) aged 55 and above who are right-sizing from their private property to a 4-room or smaller resale HDB flat are exempted from the wait-out period," MND added.

MND pointed out that the rate of increase in resale prices of HDB flats has continued to moderate.

HDB's quarterly Resale Price Index (RPI) increased by 1.1 per cent in the fourth quarter of 2023. "This is slower than the average quarterly increase of 2.5 per cent in 2022. For the whole year of 2023, resale prices rose by 4.9 per cent, less than half of the 10.4 per cent increase in 2022," MND said.

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