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450 private homeowners appeal wait-out for resale flats; HDB says those with purchase options before Sept 30 exempted

SINGAPORE — The Housing and Development Board (HDB) has received 450 appeals from private property owners as of Tuesday (Oct 4), on the 15-month wait-out period before they can buy resale flats.

The Housing and Development Board said that the number of private property owners buying its resale flats has doubled in 2021 and the first three-quarters of 2022, as compared to 2019 and 2020. 

The Housing and Development Board said that the number of private property owners buying its resale flats has doubled in 2021 and the first three-quarters of 2022, as compared to 2019 and 2020. 

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  • HDB has received 450 appeals from private property owners on the 15-month wait-out period before they can buy resale flats
  • Its preliminary screening of 200 appeals revealed that half have received their option to purchase resale flats before the cooling measures took effect on Sept 30
  • HDB said such prospective buyers with documentary proof may have the 15-month wait-out period waived
  • Other private property owners who face extenuating circumstances may approach HDB for assistance

SINGAPORE — The Housing and Development Board (HDB) has received 450 appeals from private property owners as of Tuesday (Oct 4), on the 15-month wait-out period before they can buy resale flats.

HDB said this on Thursday in response to queries from TODAY, adding that a preliminary screening of 200 appeals revealed that about half were from private property owners who had received their option to purchase a resale HDB flat before the announcement of the cooling measures last Thursday.

For these prospective buyers with documentary proof that they have received their option to purchase agreement before Sept 30, HDB will be waiving the 15-month wait-out period. The agreement is a signed document between a property's seller and a prospective buyer before they enter into a contract for the sale and purchase of the property.

The public housing authority said: “These buyers would have to show proof of payment of the option fee or the option exercise fee before Sept 30, 2022, for HDB to process their appeals favourably.

“HDB will also verify internally through our own system for buyers who are using their CPF (Central Provident Fund) and/or taking a housing loan for the flat purchase, as such buyers would have to make a ‘Request for Value’ to HDB.”

On Sept 30, the Government implemented measures to moderate demand in the HDB resale market. This included tighter loan rules and requiring private property owners who are below 55 years old to wait 15 months from the sale of their property before they can buy a non-subsidised HDB resale flat.

Private property owners who spoke to TODAY said that they were blindsided by the sudden changes — which were announced less than an hour before they took effect — and the measures have dampened or halted their plans to downgrade to an HDB resale flat.

HDB said that the remaining half of the 200 appeals in its preliminary screening are from private property owners who have yet to receive an option to purchase.

“These cases may include private property owners or ex-private property owners who have committed to sell or have sold their existing private property,” it added.

“We are reviewing the documents submitted and will assess these appeals on a case-by-case basis.”

HDB also reiterated that the number of private property owners buying its resale flats has doubled in 2021 and the first three-quarters of this year, as compared to 2019 and 2020. 

“Private property owners generally have more financial means to buy resale flats, as compared to first-time home buyers or existing HDB (flat) owners. Some may not even need to take loans to complete their purchase. They therefore tend to pay higher amounts of cash-over-valuation when buying resale flats.” 

However, acknowledging that there are private property owners — regardless of age — who may face extenuating circumstances, HDB said that these owners may approach it for assistance and it will "see how best to assist them on a case-by-case basis”.

It also called attention to clause 16.1 of HDB's prescribed option to purchase, which states that an option to purchase is void if a resale flat buyer is no longer eligible for the purchase due to no fault of their own — such as because of the 15-month wait-out period. Sellers shall refund the option fee paid to the buyer. 

Related topics

cooling measures private property property HDB resale flats appeal

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