Debated in Parliament on 6 Feb 2023.
Mr Darryl David asked 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.
Mr Darryl David asked 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.
As part of the property cooling measures introduced on 30 September 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.
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.
There has been some moderation in the resale market, as HDB’s Resale Price Index in the fourth quarter of 2022 registered an increase of 2.3% over that in the third quarter of 2022. This is lower than the 2.6% increase in the third quarter of 2022 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.
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.
Between 30 September 2022 and 30 November 2022, HDB received 1,284 appeals from PPOs or 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 September 2022.
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 September 2022, or whether the appellants are in financial difficulties and do not have viable housing options.
PAPERCUTS