Impact on Flat Prices from Waiver of 15-month Wait-out Period for Seniors Moving from Private Properties to Resale HDB Flats
Ministry of National DevelopmentSpeakers
Summary
This question concerns the impact of exempting seniors aged 55 and above from the 15-month wait-out period when right-sizing from private properties to 4-room or smaller resale HDB flats. Mr Chong Kee Hiong inquired about the number of seniors utilizing this waiver and its effect on the prices and turnover of 4-room and 5-room resale flats. Minister Desmond Lee stated that approximately 940 senior households benefited from the exemption between 30 September 2022 and 31 December 2023. These households accounted for under 4% of relevant resale transactions, resulting in minimal impact on the market prices and volume of 4-room flats. Minister Desmond Lee added that no spillover impact on the prices of 5-room resale HDB flats is expected from this policy.
Transcript
38 Mr Chong Kee Hiong asked the Minister for National Development with regard to the policy allowing seniors above 55 years old who are moving from a private property to a 4-room or smaller resale HDB flat to be exempted from the 15-month wait-out period (a) what is the number of seniors doing so in the last two years; (b) what has been the impact on the prices and turnover of 4-room resale HDB flats; and (c) whether there has been a spillover impact on the prices of 5-room resale HDB flats.
Mr Desmond Lee: From 30 September 2022, current and former private residential property owners (PPOs) must wait out 15 months from the disposal of their private property before they are allowed to buy a non-subsidised resale flat. This is a temporary measure to moderate the demand for resale flats and ensure that resale flats remain affordable for flat buyers with greater housing needs. To support seniors' retirement needs, Singapore Citizens and their spouses aged 55 and above who are right-sizing from their private property to a 4-room or smaller resale HDB flat are exempted from the wait-out period.
From 30 September 2022 to 31 December 2023, about 940 senior households have benefited from the exemption and right-sized to a 4-room or smaller resale HDB flat. They formed under 4% of all resale transactions for 4-room or smaller flats in the period. Given the small numbers, there is likely minimal impact by this group of seniors on the prices and resale volume of 4-room resale HDB flats. Similarly, we do not expect a spillover impact on the prices of 5-room resale HDB flats.