Mobility wins, more buzz in million-dollar HDB market with lifting of 15-month wait-out period 

[SINGAPORE] Kudos to the government for removing the 15-month wait-out period for private homeowners looking to buy a Housing & Development Board (HDB) flat in the resale market.

The 15-month wait-out restriction, which applied to private residential property owners after disposing of their private home before they could purchase a non-subsidised resale flat, was introduced as a temporary measure in end-September 2022. The intention was to moderate demand in a rapidly heating resale sector, and promote sustainable conditions in the housing market.

To better support the retirement needs of seniors, Singapore citizens aged 55 and above were exempted from the wait-out period if they moved from their private home to a four-room or smaller non-subsidised HDB resale flat.

The rationale for the lifting the restriction entirely is strong. Based on the HDB Resale Price Index, prices declined by 0.1 per cent in Q1 and slipped another 0.3 per cent in Q2. This follows five consecutive quarters of slower or no price growth from Q4 2024 to Q4 2025. 

Supply has also increased, with a larger number of HDB flats completing their minimum occupation period and entering the resale market over the next few years.

Housing mobility

Allowing people to more seamlessly trade private homes for resale public housing units promotes housing mobility, which is good for household well-being and managing household finances.

Younger eligible private homeowners may appreciate the greater ease of being able to sell a private home and buy a HDB resale flat, thereby freeing up capital to tide through rough financial conditions or fund urgent family needs or finance a business venture.

Moreover, some younger owners might think it is opportune to cash in on the price appreciation of their condo home and move to a premier HDB resale flat.

Locals aged 55 years and above can now more easily sell a private home and buy a HDB resale five-room or executive flat. For one thing, some seniors might much prefer getting a five-room or executive flat instead of a four-room flat because they need more space for the extended family to gather or to house grandchildren occasionally.

Million-dollar flats

Overall, the greater ease with which people can now trade a private home for a HDB resale flat could further boost demand in the already high-flying premier end of the HDB resale market.

In my recent column in The Level Ground, I highlighted the need to watch out for inequality and negative wealth effects as HDB resale prices moderate broadly but the premier segment strengthens.

In the second quarter, the number of transactions of HDB resale flats costing S$1 million or more each reached 491, up 19.5 per cent quarter on quarter and 18.3 per cent year on year, indicated ERA Singapore.

Deals involving million-dollar or more flats accounted for 7.7 per cent of all HDB resale transactions in Q2, up from 6.5 per cent in Q1.

There are strong demand drivers for resale unclassified HDB four-room, five-room and executive flats in sought-after locations.

Among others, local couples who bust the monthly household income ceiling of S$14,000 to buy new HDB flats as well as couples comprising permanent residents who have held such status for at least three years could be keen on buying premier HDB resale flats.

As it stands, local seniors rightsizing from private homes to sought-after HDB resale units are already active in the million-dollar or more HDB resale flat segment.

Without a wait-out period when buying resale unclassified HDB five-room or executive flats, even more seniors could latch on to the idea of strengthening retirement financial adequacy from freeing up funds by trading a private home for a premier HDB resale flat.

Furthermore, the removal of the wait-out period could result in some increased demand for sought-after HDB resale flats from younger private homeowners. Indeed as the design, quality, range of amenities and transport connectivity of HDB homes improves, more people may have little issue moving from private housing to premier HDB resale units.

Ultimately, removing the wait-out period enhances housing options for many locals and is a win for housing mobility. Still, this easing might create more buzz in the already buzzing million-dollar segment of HDB resale flats, which could worsen inequality.