Buying a Second Property – 3 Key Factors to Consider
TLDR When navigating the complexities of purchasing a second property in Singapore, ensure you meet eligibility criteria, consider affordability factors...
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 …
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
Discover the 3 Top Factors Impacting HDB Resale Valuation in Singapore: What Every Buyer Must Know!
TLDR The blog post discusses the increased demand for HDB resale flats and the impact on prices. It emphasizes the...
Read More
Discover How The CPF Accrued Interest Can Impact Your Property Sale Proceeds
Singaporeans are renowned for being smart and savvy - especially when it comes to selling their homes, whether it's an...
Read More
5 Tips : How To Choose The Right Property Agent To Help With Your Singapore Property Investment
Choosing the right property agent is crucial to the success of your Singapore property investment. A good agent can provide...
Read More
Why Selling Your Own HDB Flat May Be More Challenging Than You Anticipate: 7 Hidden Challenges to Prepare For
TLDR Selling your flat can be a daunting task, not because of the paperwork but due to challenges in marketing...
Read More
Revival of Singapore Luxury Housing Market in 2023
TLDR The property market in Singapore has witnessed significant shifts in the past two years, with a surge in prices...
Read More
Top 5 Best Secret Gardens in Singapore
Singapore, a bustling city-state known for its modern architecture and vibrant culture, is also home to a plethora of hidden...
Read More
The Myth of Cheaper New Condos from Lower Land Prices in Singapore
TLDR Lower Government Land Sales (GLS) prices do not automatically lead to cheaper new launch condos in Singapore. Developers base...
Read More
Common Misconceptions About Buying Property in Singapore’s Core Central Region (CCR) in 2025
TLDR Singapore’s Core Central Region (CCR) is often seen as a safe, luxurious, and exclusive property segment. However, this view...
Read More
Discover Affordable Executive Condos in 2024 Starting at $560,000
TLDR The Executive Condos (ECs) offer affordable options compared to private properties in Singapore. Despite price variations, most ECs remain...
Read More
Is It Better To Purchase A Larger HDB Or A Smaller Condo For $1 Million In 2025?
TLDR When comparing a large, centrally located resale flat (e.g., 5-room HDB) with a small condo around the $1 million...
Read More
Tips for Young Adults to Begin Saving for Their Future Home
TLDR When aiming to purchase a home, it is crucial to gain knowledge about the buying process and track your...
Read More
5 Frequently Heard Sales Pitches from Agents Encouraging You to Choose a New Development Instead of a Resale Condo: How Accurate Are They?
TLDR While some agents may discourage resale condos due to personal incentives, the difference in profits between resale and new...
Read More
The Surprising Truths of Home Ownership: How Health Challenges Led a Homeowner to Relocate
When thinking about staircases, light switch locations, selling our home, and similar topics, many plan for retirement, assuming these issues...
Read More
Top 5 Bakeries in Singapore for Fresh Bread and Pastries
Singapore, a melting pot of cultures and flavors, is well-known for its diverse culinary scene. Among the many gastronomic delights...
Read More
My Dad’s Agent Utilised Misleading Information to Coerce Him into Selling His HDB” – 4 Pushy Sales Techniques You Should Be Aware Of
TLDR While Singapore’s real estate sector is more regulated, some agents still use high-pressure tactics that make buyers uncomfortable. Common...
Read More
Top 5 Mistakes to Avoid When Investing in Singapore Real Estate
Investing in Singapore's real estate market can be a lucrative venture, given the city-state's status as a global financial hub...
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
