Written Answer by MND on number of home owners given waiver of 15-month wait-out period after selling private property
Feb 6, 2023
Question by: Mr Darryl David
4077. Mr Darryl David: To ask the Minister for National Development whether the rule to prevent private property owners from buying HDB resale flats for 15 months after selling their private property has impacted
(i) the HDB resale market and
(ii) the rental market as private owners will now have to rent a flat to sit-out this 15-month period before they can buy a HDB resale flat.
4078. Mr Darryl David: To ask the Minister for National Development whether the Government can provide an update on
(i) the number of private property owners who are given a waiver of the 15-month wait-out period after selling their private property before they can buy a HDB resale flat and
(ii) the reasons for providing these private property owners with this waiver.
Answer:
As part of the property cooling measures introduced on 30 Sep 2022, private residential property owners (PPOs) and ex-PPOs are required to serve a wait-out period of 15 months after the disposal of their private properties before they are eligible to buy a non-subsidised resale flat. This is a temporary measure to help moderate demand for resale flats. Nevertheless, to support seniors in right-sizing to enhance their retirement adequacy, the 15-month wait-out period does not apply to those aged 55 and above, including their spouses, who are moving to a 4-room or smaller resale flat.
2 Besides the cooling measures, HDB has ramped up the flat supply by about 35%, from about 17,100 BTO flats being launched in 2021 to about 23,200 BTO flats being launched in 2022. We will continue to launch up to 23,000 BTO flats this year.
3 There has been some moderation in the resale market, as HDB’s Resale Price Index in 4Q2022 registered an increase of 2.3% over that in 3Q2022. This is lower than the 2.6% increase in 3Q2022, and is the lowest quarter-on-quarter increase in 2022. Total resale volume has also moderated. For 2022, the total resale volume was about 10% lower than in 2021. We will continue to closely monitor and adjust our polices where necessary, to ensure a stable and sustainable property market.
4 Median rents for HDB flats have increased in recent quarters, due to strong demand for rental accommodation from various groups, such as Singaporeans temporarily renting while waiting for the completion of HDB and private properties that had been delayed due to COVID-19, as well as people coming to Singapore to work or study. Private property owners affected by the 15-month wait-out period may have also turned to the HDB rental market, contributing to the demand.
5 Between 30 Sep 2022 and 30 Nov 2022, HDB received 1,284 appeals from PPOs/ex-PPOs to waive the 15-month wait-out period. Thus far, 902 appeals have been processed, and about 38% of them were successful. The majority of successful appellants had already committed to buy the resale flat, with an Option to Purchase (OTP) that was obtained before 30 Sep 2022.
6 HDB is progressively reviewing the remaining appeals received. HDB evaluates each appeal carefully on a case-by-case basis based on individual merits of the case, such as whether the appellants have committed to the purchase of a resale flat prior to 30 Sep 2022, or whether the appellants are in financial difficulties and do not have viable housing options.
Certainly! The passage you've shared discusses Singapore's property market regulations, specifically addressing the impact of a 15-month wait-out period imposed on private property owners before they can buy a Housing Development Board (HDB) resale flat. Here's a breakdown of the concepts used in the article:
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Property Cooling Measures: These are government regulations aimed at stabilizing property prices and demand. In this case, the 15-month wait-out period is a measure to moderate demand for HDB resale flats after the disposal of private properties.
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Exemptions for Seniors: Individuals aged 55 and above (including their spouses) are exempted from the 15-month wait-out period if they are downsizing to a 4-room or smaller resale flat. This exemption supports seniors in right-sizing for retirement.
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HDB Flat Supply: The government has increased the supply of Build-to-Order (BTO) flats by approximately 35% between 2021 and 2022 to meet housing demands. The plan is to continue launching a significant number of BTO flats to address housing needs.
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Resale Market Moderation: There's been a moderation observed in the HDB resale market as indicated by a lower increase in resale price index and a decrease in total resale volume in 2022 compared to 2021.
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Rental Market Impact: The demand for rental accommodation has increased, partly due to delays in property completions caused by COVID-19. Private property owners affected by the 15-month wait-out period might be contributing to this demand in the HDB rental market.
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Appeals for Waiver: Private property owners and ex-owners affected by the wait-out period can appeal for a waiver. The government has received appeals and is evaluating them on a case-by-case basis, considering factors like prior commitment to purchase before the implementation of the rule and financial difficulties impacting housing options.
This comprehensive understanding comes from expertise in real estate policies and regulations, coupled with an understanding of market dynamics and government interventions. The insights in the passage reflect a multi-faceted approach to managing property markets while considering the needs of different demographics within Singapore.
