Million dollar HDB resales could increase with private homeowners no longer subject to 15-month waiting period

SINGAPORE: The Singapore Government’s decision to scrap the 15-month waiting period for private homeowners seeking to buy resale HDB flats after selling their properties is expected to reshape demand within the resale market, with property analysts predicting stronger interest in larger flats and a potential rise in million-dollar transactions.

Announced by Minister for National Development Chee Hong Tat on Monday (28 July), the policy change takes effect immediately following what the Government described as improved market conditions. Under the revised rules, private homeowners who have sold their properties can now purchase any non-subsidised resale HDB flat, regardless of size, without having to wait 15 months.

Property experts told 8World that while the move is unlikely to trigger a sharp rebound in the resale market in the immediate term, it is expected to alter buying patterns among former private property owners.

Analysts believe many of these buyers will gravitate towards larger resale flats, particularly five-room units and homes located in mature estates, rather than smaller flats. As a result, demand for larger units is expected to strengthen, while interest in four-room and smaller resale flats could soften.

One industry insider told the Chinese daily that many former private homeowners are likely to target spacious resale flats or units in established estates, where prices have already crossed the S$1 million mark in many cases. She expects both transaction volumes and prices for five-room HDB flats to increase as more buyers enter this segment of the market.

Others in the industry, however, believe the policy adjustment could have a broader stabilising effect. They argue that removing the waiting period will encourage more private homeowners to sell their existing properties, increasing the supply of resale private homes while simultaneously supporting demand for resale HDB flats.

According to these experts, resale HDB prices have already eased by around 4 per cent over the past three quarters. They believe the additional demand generated by former private homeowners could help steady prices in the resale market rather than fuel another rapid surge.

They also noted that demand from first-time buyers has already moderated alongside slower price growth in the resale HDB market. As such, they do not expect the removal of the waiting period to significantly affect first-time homebuyers.

Beyond changes affecting homebuyers, Mr Chee also announced an extension to the deadline for developers acquiring large collective sale sites to apply for additional buyer’s stamp duty exemptions.

Property experts said the extension is expected to reduce investment risks for developers, making them more willing to pursue large urban redevelopment projects.

They pointed to the growing number of collective sale sites involving between 800 and 1,200 units, noting that projects of this scale carry higher financial risks for developers. At the same time, such developments have the potential to transform entire precincts and support more comprehensive urban renewal.

With the extended deadline, developers are expected to have greater flexibility to plan and phase their projects instead of rushing developments to market in order to meet tax exemption requirements. Analysts believe this could encourage more developers to consider large-scale collective sale opportunities.

Even so, they cautioned that while the policy changes may improve confidence among developers, whether they lead to a broader recovery in the property market will ultimately depend on the response of homeowners and overall market conditions.