HALF OF APPEAL CASES OBTAINED OTP BEFORE SEP 30
The wait-out period was among a package of measures announced last week to cool the property market.
Seniors aged 55 and above who are moving from their private property to a four-room or smaller resale flat are unaffected by the new rules.
Following the announcement of cooling measures, HDB has received about 450 appeals about the 15-month wait-out period as of Oct 4.
Based on a preliminary screening of about 200 appeals, about 50 per cent are cases where an OTP was obtained to buy an HDB resale flat before the measures kicked in on Sep 30.
The remaining appeals were cases where the OTP to buy a resale flat had not been obtained.
“These cases may include private home owners or ex-private home owners who have committed to sell or have sold their existing private property,” said HDB.
“We are reviewing the documents submitted and will access these appeals on a case-by-case basis.”
RISE IN PRIVATE HOME OWNERS BUYING RESALE FLATS
Explaining its decision to impose the 15-month wait-out period, HDB said the number of private home owners buying resale HDB flats has doubled in 2021 and the first three-quarters of 2022, as compared to 2019 and 2020.
Previously, private home owners who sold their property did not have to serve a wait-out period before buying a non-subsidised HDB resale flat, but they were required to sell their unit within six months of the HDB flat purchase.
Private home owners generally have more financial means to buy resale flats, as compared to first-time home buyers or existing HDB owners, the agency noted.
“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,” HDB said.
It added, however, that it recognises not all private home owners share the same situation.
“We also understand that there are private property owners, regardless of age, who face genuine housing needs or who have to sell their homes because of extenuating circumstances such as financial difficulties,” said HDB.
“They can approach HDB for assistance, and we will see how best to assist them on a case-by-case basis.”