Latest news with #MinimumOccupation
Yahoo
03-07-2025
- Business
- Yahoo
1 in 4 appeals to waive HDB wait-out period for private home owners approved since Sept 2022
SINGAPORE - About one in four appeals from private property owners seeking to bypass the 15-month wait-out period to buy a Housing Board resale flat has been successful, the Housing Board said. From the time the rule was introduced on Sept 30, 2022, until March 31, 2025, HDB received and processed about 5,500 appeals for a waiver. Around 25 per cent of these were approved after careful assessment of each case. Extenuating circumstances of the flat buyers and their families are taken into account 'to ensure that applicants and families with genuine needs are given fair consideration', a spokeswoman for HDB told The Straits Times. When asked, the HDB did not specify the typical reasons cited in appeals and the criteria used to assess them. The 15-month wait-out period was part of a series of measures introduced to help cool the HDB resale market, which was heating up partly due to demand from private property downgraders flush with capital. It also helps to prioritise public housing for Singaporeans with more urgent housing needs, HDB said. The rule applies to private property owners and former owners looking to buy a non-subsidised HDB resale flat. It does not apply to those aged 55 and above who are buying a four-room or smaller resale flat. National Development Minister Chee Hong Tat said recently that the rule may be relaxed before 2027, due to an expected rise in supply of new and resale flats. The HDB spokeswoman said there are early signs of moderation in resale price growth. 'We expect the market to further stabilise as more flats reach the Minimum Occupation Period (MOP) and enter the resale market over the next few years starting from 2026,' she said. 'We will also maintain a strong supply of Build-To-Order (BTO) flats to meet housing demand.' Since the rule took effect, analysts have noted a marked impact on the resale market, particularly on larger flats. Mr Mohan Sandrasegeran, head of research and data analytics at real estate firm Singapore Realtors Inc, noted that the number of five-room flats resold dropped by 22.5 per cent to 1,482 units between January and March 2025, compared with 1,913 units resold from July to September 2022, just before the 15-month wait-out period kicked in. Executive flats saw a steeper dip of 32.1 per cent in transactions between the two periods. The figures suggest that the wait-out rule has helped dampen demand from private property downgraders to some extent, said Mr Mohan. He added that the latest flash estimates for April to June 2025 released by HDB on July 1 showed resale flat prices continuing to moderate, rising by 2.5 per cent in the first half of 2025 compared with 4.2 per cent in the same period in 2024. While the rule has helped cool demand, some private home owners facing unexpected life changes – such as job loss or financial strain – could benefit from more flexibility, said property analysts. Mr Eugene Lim, key executive officer at real estate agency ERA Singapore, said the HDB resale price index (RPI) slowed after the 15-month wait-out rule took effect on Sept 30, 2022, but picked up once eligible private home sellers re-entered the market in the first quarter of 2024. Resale transactions rose to 7,068 units from January to March 2024, with the RPI climbing 1.8 per cent quarter on quarter. The index rose another 2.3 per cent in the second quarter of 2024, which was close to the 2.6 per cent gain seen in July to September 2022 before the rule was introduced. Growth eased to 1.6 per cent in the first three months of 2025, likely due to the February 2025 Sale of Balance Flats (SBF) exercise absorbing some demand, said Mr Lim. He has also observed that price growth in the HDB resale market has been increasingly driven by buyers favouring newer flats with longer remaining leases. This preference, especially among home owners looking to move to a flat that better suits their needs, has led to a divergence in price trends between 'younger' and 'older' flats. The agency's analysis showed that unit prices of newer flats – typically, those under 25 years old – have seen stronger appreciation compared with those of older flats. Mr Lim said lease decay concerns among home buyers have contributed to the faster appreciation for newer units, which are often priced at a premium. Lease decay is the erosion of a flat's value as the end of its 99-year lease approaches. He added that such buyer behaviour is independent of any possible revision to the 15-month wait-out policy, and he expects it to remain a key driver of overall price trends. Between 2025 and 2027, more than 50,000 flats will be launched by HDB, including a growing number of Shorter Waiting Time flats and SBF, which will help to absorb demand that might otherwise flow into the resale market, said Mr Mohan. More flats will also hit the market as they complete their MOP – a mandatory stay period (typically five years) before owners are allowed to sell them on the resale market. About 13,500 flats will reach their MOP in 2026, up from 8,000 in 2025. In 2028, this will rise to 19,500 flats. Mr Chee said he expects that the effect of a strong continued supply of new BTO flats and resale units would moderate resale prices, making it timely for the authorities to consider if the 15-month cooling measure should be partially or entirely removed. Source: The Straits Times © SPH Media Limited. Permission required for reproduction Discover how to enjoy other premium articles here
CNA
25-04-2025
- Business
- CNA
HDB resale price growth eases to 1.6% in Q1 2025, transactions up 2.6%
Singapore Private home prices also slowed in the first quarter of the year, but demand is expected to remain resilient, analysts said. 25 Apr 2025 01:40PM (Updated: 25 Apr 2025 01:43PM) SINGAPORE: Resale flat prices increased by 1.6 per cent in the first quarter of 2025 compared to the previous quarter, according to Housing and Development Board (HDB) data released on Friday (Apr 25). The resale price index, which reflects the general price movements in the resale market, grew by 1.6 per cent to 201.0 in Q1 2025, lower than the 2.6 per cent quarter-on-quarter increase observed in Q4 2024 and the 2.3 per cent average quarterly growth last year. Resale transactions for Q1 2025 also rose by 2.6 per cent to 6,590 cases, up from the 6,424 cases in Q4 2024. First quarter transactions were 6.8 per cent lower compared to the same period last year. "The largest Sale of Balance Flats (SBF) exercise in Feb 2025 provided buyers with more options and may have helped to ease the demand pressure, leading to a smaller increase in prices in Q1 2025," said Huttons' senior director for data analytics Lee Sze Teck. Earlier this month, Singapore downgraded its gross domestic product (GDP) growth forecast for 2025 to 0 per cent to 2 per cent, against the backdrop of slowing global trade and heightened economic uncertainty following US President Donald Trump's tariffs. "While domestic interest rates have eased from their peak at end-2023, they are expected to remain higher than the low levels seen over the past decade," said HDB on Friday. "Given the evolving economic landscape and interest rate environment, households are strongly advised to exercise prudence in their property purchases and borrowing, especially since the property market moves in cycles and those who buy high will be hit harder if prices weaken. "The government will continue to monitor the property market closely and adjust its policies as necessary so as to promote a stable and sustainable property market." Housing affordability and availability have been hot-button issues for voters as Singapore heads into its next General Election, according to analysts. In July, HDB will launch about 5,400 Build-To-Order (BTO) flats in Bukit Merah, Bukit Panjang, Clementi, Sembawang, Tampines, Toa Payoh, and Woodlands. HDB said it would launch more than 50,000 BTO flats from 2025 to 2027, including about 19,600 BTO flats in 2025. "In total, HDB will launch about 130,000 flats from 2021 to 2027, increasing the public housing stock by 11 per cent," it said. HDB added that more resale flats will enter the market, as the number of new flats reaching the Minimum Occupation Period (MOP) will increase, from about 8,000 this year to 13,500 in 2026, and 19,500 in 2028. "As more BTO flats enter the market, they are expected to divert some demand away from the resale segment - particularly among buyers who are willing to wait for new flats instead of paying a premium for resale units," said Singapore Realtors Inc (SRI) head of research and data analytics Mohan Sandrasegeran. "This shift will be further supported by the rollout of flats with shorter waiting times, which offer a middle ground between resale immediacy and BTO affordability". HDB also said on Friday that it will conduct a concurrent SBF exercise offering about 3,000 flats. Including the 5,500 SBF flats already launched in February, this brings the total SBF supply this year to about 8,500 flats, which is the largest since 2017. More details on the new flats to be offered will be shared at the July 2025 BTO and SBF sales exercises, HDB said. Mr Sandrasegeran said the increased supply of flats under the SBF scheme is expected to further absorb demand that would have otherwise flowed into the resale segment. "The upcoming SBF exercise in 2025 will provide more opportunities for home seekers to secure ready or near-ready flats in desirable locations - typically at more affordable prices than comparable resale units," he said. HDB on Friday also reminded prospective flat buyers to have a valid HDB Flat Eligibility (HFE) letter when they submit their flat application. As HFE letter applications tend to peak closer to the sales exercises, interested flat applicants looking to participate in July's BTO and SBF exercises are encouraged to apply for an HFE letter early and submit all the required documents by May 15, 2025. PRIVATE HOMES Urban Redevelopment Authority (URA) data also released on Friday showed that prices of private residential properties increased by 0.8 per cent in Q1 2025, easing from the 2.3 per cent increase in the previous quarter. Prices of landed properties increased by 0.4 per cent in the first quarter of this year, compared to the 0.1 per cent decrease in the last quarter of 2024. Meanwhile, prices of non-landed properties increased by 1.0 per cent in Q1 of 2025, compared with the 3.0 per cent increase in the previous quarter. In the Core Central Region, prices of non-landed properties increased by 0.8 per cent in the first quarter of 2025, compared with the 2.6 per cent increase in the previous quarter. For the Rest of Central Region, prices rose by 1.7 per cent in Q1 2025, compared with the 3.0 per cent in the previous quarter. Prices in the Outside Central Region increased by 0.3 per cent in Q1 of this year, compared with the 3.3 per cent increase in the previous quarter. The Q1 2025 performance "suggests that demand in the private resale segment remains resilient despite macroeconomic headwinds," Mr Sandrasegeran. "Overall, the figures underscore a continued recovery and interest in the resale market, particularly from buyers seeking move-in ready homes amid limited new launch supply." RENTALS For the public housing market, HDB said that the number of approved applications to rent out flats rose by 12.3 per cent in the first quarter of 2025, climbing from 8,603 cases in the previous quarter to 9,662. Compared to the same period last year, this marks a 2.8 per cent increase, HDB said. As at the end of Q1 2025, a total of 59,567 HDB flats were rented out - up 0.9 per cent from 59,043 units in the fourth quarter of 2024. As for the private market, rentals of private residential properties increased by 0.4 per cent in Q1 2025, after remaining unchanged in the previous quarter, URA said. Rentals of landed properties increased by 0.3 per cent in the first quarter of 2025, compared with the 1.8 per cent decrease in the previous quarter. For non-landed properties, rentals increased by 0.5 per cent in Q1 2025, compared with the 0.2 per cent increase in Q4 2024. Ms Christine Sun, chief researcher and strategist at OrangeTee group, said that some companies may slow down their expat hiring in light of the uncertain economic outlook, which may impact the private rental market. 'Nevertheless, the declining supply of completed homes, along with the lowering of interest rates, which helps reduce business financing costs, may mitigate a significant rental price correction,' she said. In the Core Central Region, rentals of non-landed properties increased by 0.4 per cent in Q1 2025, down from the 0.9 per cent increase in the previous quarter. Rentals in the Rest of Central Region increased by 0.4 per cent in Q1 2025, up from the 0.3 per cent increase in the previous quarter. For Outside Central Region properties, rentals increased by 0.7 per cent in Q1 2025, compared with the 0.8 per cent decrease in the last quarter. Huttons' Mr Lee said those economic uncertainties have enhanced the position of Singapore as a safe haven. 'Ultra-high-net-worth-individuals may choose to relocate to Singapore and rent luxury homes in the Core Central Region,' he said. 'In the next two years, the Core Central Region will experience a very low supply of completed homes. Landlords ... may see better growth in rents in the coming years,' he added.
