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