SINGAPORE - The 15-month wait-out period imposed on current and former private property owners will moderate demand for Housing Board resale flats and keep them affordable, especially for first-time home buyers, said National Development Minister Desmond Lee.
This is because private residential property owners generally have more means to buy resale flats than first-time home buyers or existing HDB flat owners, said Mr Lee in video remarks on his ministry's YouTube page on Friday evening.
"Some may not even need to take loans to complete their purchase. They therefore tend to pay higher amounts of cash over valuation (COV) when they buy resale flats," he said.
COV refers to the difference between the sale price of a resale flat and its actual HDB valuation. The difference can be paid for only in cash by the buyer.
From Friday, private home owners must wait 15 months after the sale of their current home before they can buy a non-subsidised HDB resale flat.
Exceptions are made for those aged 55 and above who are moving from a private property to a four-room or smaller HDB resale flat, a two-room flexi flat or a community care apartment intended for seniors.
HDB will also, on a case-by-case basis, exempt those with genuine housing needs or those who face extenuating circumstances regardless of their age, said Mr Lee.
"We intend for this measure to be temporary. We will review this, depending on overall demand and market changes," said Mr Lee, referring to the 15-month wait-out period.
The latest round of cooling measures aims to nip overborrowing as both HDB resale and private home markets show growing signs of overheating. It comes just nine months after the last tranche of measures was implemented.
Two big moves to tighten the maximum amount that can be taken for home loans kicked in on Friday.
https://www.straitstimes.com/singap...-flat-demand-ensure-affordability-desmond-lee
