Government may remove 15-month wait-out period when HDB resale prices begin to moderate: Chee Hong Tat
The temporary measure was introduced in 2022 to moderate demand and prices for resale flats
[SINGAPORE] The government may review or remove the 15-month wait-out period imposed on private property owners seeking to downgrade, when prices of public housing resale flats begin to moderate, said Minister for National Development Chee Hong Tat on Wednesday (May 28).
“The restriction was put in place as a temporary measure precisely because there were concerns about higher resale flat prices,” said Chee. The wait-out period before private property owners are allowed to purchase a non-subsidised Housing and Development Board (HDB) resale flat was introduced in 2022, and HDB had said it will be reviewed depending on overall demand and market changes.
Chee pointed out that resale prices have started to show some moderation. Resale prices of public housing flats grew at a slower rate of 1.6 per cent over the previous three months.
This was lower than the 2.6 per cent price increase in the fourth quarter of last year, and the average quarterly growth of 2.3 per cent in 2024, latest data released by HDB showed. The 1.6 per cent growth also marked the slowest pace of price increase since the first quarter of 2024.
Chee, who was addressing the media after a visit to the Toa Payoh Ridge Build-To-Order (BTO) project, attributed the increase in resale flat prices to a “supply and demand issue”.
Earlier this year, Chee’s predecessor Desmond Lee said the proportion of private property downgraders paying high prices for HDB resale flats has come down following the introduction of the wait-out period in September 2022. From Jan 1 to Sept 29, 2022, this group made up about 34 per cent of people who bought million-dollar flats. After the wait-out period was implemented, the proportion dropped to 12 per cent between January and November in 2024.
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The Covid-19 pandemic resulted in construction delays of some BTO projects, severely impacting supply. A total of 72,101 BTO flats across 92 housing projects were affected by Covid disruptions. As at Mar 8, HDB has completed all 75,800 flats in these projects. Fear of housing delays, alongside changing social norms, led to an increase in demand for resale flats, ramping up prices.
However, Chee is hopeful that prices will moderate further when more of the new flats built in the last few years reach their five-year minimum occupancy period (MOP) starting from 2026.
Some analysts expect resale prices to remain elevated as they estimate 6,974 resale flats to hit the market in 2025 after owners fulfil their MOP – the lowest in 11 years since 5,301 units reached their MOP in 2014. Still, supply of MOP flats is expected to recover and more than double to 13,480 units in 2026.
“Once we see more supply coming in, coupled with more new BTO flats entering the market, I think we will see moderation in the resale flat prices in the years ahead,” said Chee.
Chee also paid tribute to Education Minister Desmond Lee, whom he succeeded. Under Lee’s tenure, HDB launched more than 100,000 flats from 2021 to 2025.
Over the next three years, it will build at least 50,000 new flats. Key collection for 2025 is on track, with 19,000 households expected to collect keys to their new HDB flats.
Apart from ramping up housing supply, the Ministry of National Development will also work with other government agencies to improve the living environment of new BTO estates. This includes HDB estates that are located further away from the town centre and amenities, said Chee.
The ministry plans to revitalise and rejuvenate older HDB estates and towns. Chee said a few blocks in the Toa Payoh area will be among the first batch of HDB flats to participate in the new Silver Upgrading Programme, which aims to make the living environment more conducive for seniors.
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