Great Reasons for Condo Owners to Sell upon Reaching TOP – A Guide to Sub-Sale Transactions
TLDR A recent sub-sale transaction in Midtown Modern set a new record with a 2-bedroom home selling at $3,150 psf....
Read More
TLDR
The 15-month wait-out period introduced in September 2022 requires private property owners to wait before buying a resale or BTO HDB flat, aiming to curb million-dollar HDB transactions by limiting demand from private owners. However, despite reducing private owner purchases of million-dollar flats from 34% to 12%, the total number of such transactions rose significantly from 370 in 2022 to over 1,000 in 2024. The policy has limited impact on overall price growth and poses financial strain during economic downturns, especially for those facing job insecurity. It forces sellers into costly rental periods during the wait, worsening their situation. Given its limited success and unintended burdens, the policy needs urgent review or removal to offer flexibility and support to homeowners amid economic uncertainty.
The 15-month wait-out period, introduced in September 2022, requires private property owners (unless aged 55 or older and rightsizing to a 4-room or smaller flat) to wait 15 months after selling their private property before purchasing a resale HDB flat. For those aiming for a BTO flat, the wait extends to 30 months. This policy was ostensibly designed to moderate the number of million-dollar HDB flat transactions by curbing demand from private property owners benefiting from significant gains. However, its effectiveness and continued relevance in the current economic climate are increasingly being questioned.
Limited Impact on Million-Dollar Flats:
While the policy has reportedly reduced the proportion of private property owners among million-dollar HDB flat buyers (from 34% in Jan-Sept 2022 to 12% in Jan-Nov 2024), it hasn’t significantly stemmed the overall rise in million-dollar flat transactions. In 2022, 370 HDB flats sold for $1 million or more. This number increased to 470 in 2023 and further escalated to 1,035 by 2024. This suggests that the wait-out period has had a limited impact on the broader trend of rising HDB prices, particularly at the top end of the market. If the policy isn’t achieving its primary objective, its continued imposition warrants scrutiny.
Economic Headwinds and Undue Burden:
The current economic climate further underscores the need to re-evaluate this policy. Singapore’s growth outlook is cautious, with challenges in manufacturing and financial services. Reports of layoffs in the tech sector and difficulties in securing new employment paint a concerning picture for many individuals.
In such an environment, the 15-month wait-out period can impose an undue burden on homeowners. Many who upgraded to private condos after the pandemic, leveraging property gains, may now find themselves financially squeezed by mortgage payments amidst job insecurity or reduced income. While measures like the Total Debt Servicing Ratio (TDSR) aim to prevent over-leveraging, these safeguards offer little comfort when facing unemployment.
For those in distress, selling their private property and transitioning to a more affordable HDB flat becomes a critical step. However, the 15-month waiting period forces them into a prolonged period of uncertainty and potentially expensive rental accommodation. This additional hurdle can exacerbate financial strain during an already challenging time.
Conclusion:
The 15-month wait-out period appears to be a policy with limited effectiveness in achieving its stated goal of curbing million-dollar HDB flat transactions. More importantly, in a weakening economy, it creates an unnecessary and potentially cruel burden on homeowners facing financial difficulties. The policy’s continued existence warrants immediate review and consideration for removal to provide much-needed flexibility and support to Singaporean homeowners navigating uncertain economic times.
Should You Buy, Sell or Wait?
If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?
It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.
I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.
I can help you by:
- Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
- Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.
You May Also Like …
The Importance of Due Diligence in Property Investing in Singapore
Investing in property can be a lucrative venture, but it also comes with its own set of risks and challenges....
Read More
Using CPF Funds to Finance Your HDB Flat or Private Property in Singapore: A Comprehensive Guide
Discover the extent to which your CPF savings can be utilized for the acquisition of a HDB home in Singapore,...
Read More
Top 5 Cafes in Singapore for Brunch
Singapore, a melting pot of cultures and flavors, offers an incredible array of culinary experiences to tantalize your taste buds....
Read More
Methods to Beat ABSD and Own Multiple Properties in 2024 (Updated)
TLDR Navigating the Additional Buyers Stamp Duty (ABSD) in Singapore can be daunting for property investors. To save on ABSD...
Read More
Checklist for First-Time Homebuyers in Singapore: A Guide to Viewing Condos
TLDR The checklist provides essential steps for first-time homebuyers in Singapore to consider when viewing a condo. It includes aspects...
Read More
Navigating Singapore’s Real Estate Market: The Truth Behind 5 Common Misconceptions
The real estate market in Singapore is known for its stability and attractiveness to investors both locally and internationally. However,...
Read More
Singapore Distressed Property Market in 2025: Separating Fact from Fiction
TLDR Mortgagee sale listings in Singapore rose in Q1 2025, mainly due to higher interest rates in recent years. Despite...
Read More
Here Are 6 Interesting Facts About The Minimum Occupation Period (MOP) That Not Many People Know About In Singapore
TLDR When it comes to understanding the Minimum Occupation Period (MOP) set by the Housing Development Board (HDB) in Singapore,...
Read More
What’s Next for HDB Owners?
Buying a home always seems daunting especially such it is a big-ticket item and the prices for private homes can easily...
Read More
The Sneaky Role of Property Appraisals in Shaping Singapore’s Home Prices
TLDR When it comes to the real estate market in Singapore, understanding property valuations and the impact on mortgage loans...
Read More
Top 5 Reasons : Why Do Singaporeans Still Flood The Property Market?
Singapore, a thriving city-state with a robust economy and a strong demand for real estate, has always been an attractive...
Read More
Navigating the Levels of Financial Well-being: From Basic Sustenance to Enduring Legacy
TLDR The journey to financial wealth involves progressing through seven stages, from Survival to Legacy, each with distinct goals and...
Read More
Transforming Your Home Loan Situation with Rate Cuts
TLDR When comparing fixed and floating mortgage rates, the present fixed rate of 3% is favorable, but predictions hint at...
Read More
Are Resale HDBs Really Unaffordable In 2025?
TLDR Singapore’s housing debate is fueled by headlines about million-dollar flats, but most resale 4-room flats in over 10 estates...
Read More
5 Unexpected Factors That Make Some New Launch Condos Sell Like Hotcakes
TLDR The Singapore property market for new condo launches in 2023 saw varying degrees of success. Factors like limited competition,...
Read More
Top 5 Must-Do Experiences in Singapore for First Timers
Singapore, a vibrant city-state known for its diverse culture and rich history, offers an array of unique experiences for first-time...
Read More
The Top 5 Reasons To Invest In Singapore Property
Singapore, a small island nation with a thriving economy, has long been considered an attractive destination for property investment. The...
Read More
When Is the Right Time to Sell Your House?
TLDR When deciding to sell your house in Singapore's competitive real estate market, timing is crucial. Selling during a seller's...
Read More
Making Sense of 99-Year Landed Home Investments in Singapore
TLDR Investing in a 99-year leasehold landed property in Singapore can be a lucrative venture due to the country's land...
Read More
