In a significant move for Singapore’s property market, the Government has officially removed the 15-month wait-out period for private residential property owners buying a non-subsidised HDB resale flat.
This change, effective immediately, provides greater flexibility for homeowners who are looking to right-size from private property to an HDB resale flat. But what does this mean for buyers, sellers and the overall property market?
What Was the 15-Month Wait-Out Period?
The 15-month wait-out period was introduced in September 2022 as part of the Government’s cooling measures to moderate demand in the HDB resale market.
Under this policy, private residential property owners had to wait 15 months after selling their private property before they could purchase a non-subsidised HDB resale flat. The only exception was for Singaporeans aged 55 and above who were buying a 4-room or smaller resale flat.
The objective was to reduce competition in the resale market and help stabilise HDB resale prices.
Why Has the Wait-Out Period Been Removed?
According to HDB, the resale market has shown signs of stabilising.
HDB resale prices have recorded two consecutive quarters of decline, while the supply of resale flats is expected to increase over the next few years as more Build-To-Order (BTO) projects reach their Minimum Occupation Period (MOP). These factors have given the Government confidence that the temporary cooling measure has achieved its intended purpose.
Who Benefits From This Change?
The removal of the wait-out period mainly benefits private property owners who wish to right-size.
Homeowners can now:
- Sell their private property and purchase an HDB resale flat without waiting 15 months.
- Plan their housing transition more smoothly.
- Unlock cash from their private property while moving into a more affordable home.
- Enjoy greater flexibility when planning retirement or reducing housing expenses.
Will HDB Prices Increase Again?
While the policy change may encourage more private homeowners to enter the HDB resale market, experts believe any increase in demand is likely to be balanced by the growing supply of resale flats over the coming years.
The Government has indicated that a larger pipeline of flats reaching MOP should help maintain market stability, even with more right-sizers returning to the resale market.
What Should Buyers and Sellers Do?
For private homeowners considering right-sizing, this is welcome news. The removal of the wait-out period means you can make your next move with greater flexibility and less disruption.
For HDB buyers and sellers, market conditions remain favourable, but every property journey is unique. Factors such as location, flat type, affordability and long-term plans should always be considered before making a decision.
Thinking About Your Next Property Move?
Whether you’re upgrading, right-sizing, buying your first home or selling your current property, understanding the latest policy changes is essential.
If you’d like personalised advice on how this change affects your property plans, feel free to reach out. Every homeowner’s situation is different, and having the right guidance can help you make a more informed decision.