Singapore has created a unique property market wherein government homes are on par with private housing and condominiums. Through the tireless efforts of the HDB, the government housing has become the leading choice for the first time home owners in Singapore.
HDB Flats are easy to acquire recently; there was a time when the market was completely controlled by the government and you could only buy Build to Order (BTO) HDB flats. But now, with the new development projects of the HDB comes the capability of the flat owners of selling HDB Flat.
Possible Reasons for Selling HDB Flat
- To pay off mortgages and loans
- Take advantage of the real estate market to earn
- Singaporeans are only allowed to own one HDB flat at a time, some home owners consider selling their current flats to get a new one.
- Move to other newly built housing units
- Upgrade to executive private housing such as condominiums or privately owned homes
- Relocation to areas nearer to work, school, city or the MRT
Factors that Could Affect Sales
- Supply and Demand– there are years when the HDB releases new plans for HDB neighbourhoods encouraging consumers to invest in BTO flats. The more HDB flats they release, the lower the price.
- Pre-selling– BTO flats are comparatively cheaper, but they take 2-3 years advance purchase before it is ready to be occupied. This is in stark comparison to the quickness of simply buying a resale of an older HDB flat.
- Competition– there is a season when new Executive Condominiums (EC) will come into the market. These new ECs will attract HDB owners to shift and in so doing will more likely look into selling their flats. When more owners engage in this behaviour, the more resale flats will get injected into the market.
- Developments– MRT extensions, shopping malls and tourist attractions around your area will drive up the market value of your HDB Flat. If other areas outside your neighborhood are experiencing these developments, expect the house pricing ceiling to be lower.
When NOT to Sell your Flat?
As Singapore’s property market is in a state of relative flux, the key to gaining the greatest profit is to find the best time to sell.
When there is high supply than demand – New Executive Condominium (EC) owners will list their existing HDB flats upon the completion of more than 6,000 EC in 2018.
When your new flat or EC will be completed in less than 6 months – Ideally, you need to start advertising or sourcing for buyers of your HDB resale flat 7 months before you get the keys of your new HDB or earlier.
Nobody wants to rush sale because it means that you have lesser time to find the appropriate buyer, and the likelihood of settling for a price lower than your initially set price.
Sell your HDB flat when the market is not receiving an injection of property from either new launch condominiums and other property developers or from users who want to move en masse.
This will make sure that the supply for property is stable and you don’t have to compensate trying to compete with their prices.
After all the factors have been considered and you’ve decided that it is best to sell your HDB flat, good luck as you enter the market.
Ohmyhome is here to help with our Fixed Rate Agent Services if you need more assistance in choosing your next HDB Home or in selling your HDB flat:
Or you may call us at 6886 9009 to secure an appointment today.