Private homeowners looking to buy resale HDB flat because of needs and financial difficulties will be exempted from 15-month wait “on a case-by-case basis”, National Development Desmond Lee told Parliament on Tuesday (4 October).
He also reiterated that those above the age of 55 looking to sell their private homes to move into four-room or smaller resale flats will be exempted from the wait-out period.
He was replying to MP of the Yio Chu Kang SMC Yip Hon Weng on what measures are being taken to address the growing sentiment that Singapore property market is unaffordable for the masses.
Mr Lee said many private residential property owners “generally have more means to buy resale flats”, some not even needing to take loans to complete their purchase.
“Some may not even need to take loans to complete their purchase. … They therefore tend to pay higher amounts of cash-over-valuation when they buy resale flats,” he said.
The Government had unveiled a slew of property cooling measures on 29 Sep, one of which was the 15-month wait-out period for private home owners before they can buy a non-subsidised HDB resale flat. This is due to the “clear upward momentum in HDB resale prices”; and to moderate demand.
The new rule will also apply to those who sold their private property prior to submitting an application to buy a resale flat.
The 15-month wait-out period will kick in after homeowners have sold their property. Previously, such property owners were allowed to buy an HDB resale flat on the open market if they sold their private properties within six months of purchasing the HDB unit.
Since the last round of cooling measures in December 2021, housing prices have continued to rise, causing some anxiety about affordability, especially among young couples looking to buy their first home and start their families.
Mr Lee told the House that the Government remains committed to keep public housing inclusive, affordable and accessible to Singaporeans.
RELATED: When public housing falls short of the Singapore Dream
Join the conversations on TheHomeGround Asia’s Facebook and Instagram, and get the latest updates via Telegram.