The recent spate of cooling measures has shaken some people to their core, specifically private property owners (PPOs) who now have to wait 15 months after selling their home to be eligible to buy a HDB resale flat. (You can read more about this process here.)
This new cooling measure comes after the consistent rise in HDB resale prices, despite the rising interest rates. There was a 7.8% increase in the first 9 months of 2022, and the month of September even saw a 1.2% price increase — a faster growth than the 0.4% increase in August.
The new waiting period for PPOs is meant to tackle the “unfair” advantage they hold in the HDB resale market as they typically have more funds for a HDB purchase and are willing to pay a higher Cash Over Valuation, pricing out first-time homebuyers or existing HDB owners as a result.
Exemptions to the 15-month waiting period for private property owners who want to buy a HDB resale flat
But HDB has said in a recent statement that they will “exercise flexibility” and waive the 15-month waiting period for PPOs who have documentary proof that they’ve obtained an Option to Purchase (OTP) before 30 September 2022, when the cooling measures take effect.
PPOs will also need to show proof of payment of the option fee or the option exercise fee before 30 Sep to get a favourable result for their HDB appeal.
Also, if you’re 55 years old or older, you will be automatically exempted from the 15-month wait-out period. You will be able to move from a private property to a 4-room or smaller HDB flat, a 2-room flexy or a community care apartment for seniors, without any trouble.
But if your OTP was obtained after 30 Sep, it will become null and void and you will have to wait the now requisite 15 months before you can buy a HDB resale flat. You will also have to refund the option fee to your buyer.
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If it’s some comfort, HDB did say that the 15-month waiting period is “a temporary measure that will be reviewed depending on overall demand and market changes”.
To reiterate, here are the exemptions to the new cooling measures involving private property sellers and HDB resale buyers:
- You need to have documentary proof that you’ve obtained an Option to Purchase (OTP) before 30 Sep 2022.
- Show proof of payment of the option fee or the option exercise fee before 30 Sep when making your appeal to HDB.
- If you’re 55 years old or older, you will be automatically exempted from the 15-month wait-out period
Though we don’t know when that will happen exactly, there are still options available for you if you’re a private property owner who planned on selling your home and moving to a HDB resale flat. Read this article about how Ohmyhome Ohmyhome’s Deputy Sales Director Jason Selvaraj helped his clients work around the 15-month wait-out period and achieve their property goals.
Let our Super Agents work out your next steps with you — from your financials and timeline for sale and next home purchase to your options for your next place of residence and even your living arrangements during the 15-month waiting period.
Simply contact us by filling out the booking form below or clicking the WhatsApp button to drop us a text, or chat with us at the bottom, right-hand corner of the screen.