Implications of 15-month Cooling Period for High-Value HDB Flat Sellers versus Private Property Sellers
Ministry of National DevelopmentSpeakers
Summary
This question concerns Ms Diana Pang Li Yen’s inquiry on the equity of the 15-month wait-out period and whether it should be recalibrated based on realised housing gains rather than property type. Minister Chee Hong Tat explained that this temporary measure prioritises affordable housing for first-time buyers by moderating demand from private property owners who often pay higher Cash-Over-Valuation amounts. He noted that seniors purchasing 4-room or smaller flats are exempt, and HDB has approved about one in four appeals involving extenuating circumstances since the policy's implementation in 2022. The requirement followed a doubling of private residential property owners buying resale flats in 2021 and 2022 compared to levels seen in 2019 and 2020. Minister Chee Hong Tat concluded that the government continues to monitor the resale market and intends to remove the wait-out period when conditions allow.
Transcript
59 Ms Diana Pang Li Yen asked the Minister for National Development (a) whether the 15-month cooling period policy is equitable when sellers of high-value HDB flats who realise substantial capital gains may immediately purchase another HDB flat, while private property sellers with lower gains are subject to the restriction; and (b) whether this policy needs to be recalibrated based on realised housing gains rather than property type.
Mr Chee Hong Tat: The 15-month wait-out period for private property owners was introduced as a temporary measure to moderate the demand for Housing and Development Board (HDB) resale flats and help prioritise access to affordable public housing for Singaporeans with more urgent housing needs, such as first-time home buyers.
Prior to the implementation of the 15-month wait-out period in September 2022, the number of private residential property owners buying HDB resale flats had doubled in 2021 and the first three quarters of 2022, as compared to 2019 and 2020. Compared to other resale buyers, a higher proportion of buyers who were current and former private residential property owners paid Cash-Over-Valuation (COV) and incurred higher COV amounts.
Seniors purchasing 4-room or smaller flats are exempted from the 15-month wait-out period today. HDB also considers appeals from households facing extenuating circumstances on a case-by-case basis. Since 2022, HDB has acceded to about one in four of such appeals.
We will continue to monitor the resale market and when conditions allow, we intend to remove the 15-month wait-out period requirement.