Wait-out period waived for 220 private home owners to buy HDB resale flats
Wait-out period waived for 220 private home owners to buy HDB resale flats. According to National Development Minister Desmond Lee, 220 private property downgraders have won their appeals against the 15-month waiting period to purchase a Housing Board resale apartment.
On Thursday, he informed Parliament that HDB has waived the wait-out period for this group, which all had the option to purchase a HDB resale apartment before the cooling measure went into effect on September 30. A buy option is a legal agreement for the purchase of a home. According to him, HDB has received around 650 appeals to date, with the remaining appeals consisting of those who did not obtain an option to purchase a HDB resale apartment but have already decided to sell or have just sold their private property.
These 430 appeals will be evaluated one at a time. Private house owners must wait 15 months after selling their current home before purchasing a HDB resale property without housing aid, according to the most recent set of cooling measures. Mr Lee claims that one out of every ten HDB resale flat buyers in the last three years was a private property owner who sold his existing home to purchase a HDB resale unit. This group of buyers has more financial means to spend more for a HDB resale home than first-time flat buyers or HDB upgraders. According to HDB data, roughly 31,000 HDB resale transactions occurred in 2021, approximately 24,700 transactions occurred in 2020, and around 23,700 transactions occurred in 2019.
Mr Lee said that some downgraders of private property may be seniors aged 55 and up who want to downgrade to a smaller HDB resale apartment as part of their retirement plan. They are excluded from the 15-month waiting period if they purchase a four-room or smaller resale property. According to him, they account for around three out of every ten private property owners who purchased HDB resale flats in the previous three years, with less than one in every five paying cash beyond valuation.
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