Government Plans to Review HDB Wait-Out Rule Amid Signs of Resale Price Moderation
As HDB resale flat prices in Singapore begin to stabilise, the government is considering removing the 15-month restriction imposed on private property owners. This move is part of a broader strategy to balance demand, improve affordability, and increase public housing availability.
The Singapore government is evaluating the possibility of lifting the 15-month wait-out period currently imposed on private property owners seeking to purchase Housing and Development Board (HDB) resale flats. This consideration aligns with recent indications that the previously surging resale market is beginning to stabilise.
The 15-month restriction, introduced in 2022, was a temporary policy aimed at cooling the housing market amid rising demand and limited supply. At the time, private homeowners who sold their properties and sought to downgrade were contributing to the upward pressure on resale flat prices, prompting the implementation of this cooling measure.
Signs of Market Stabilisation
Recent data has shown a slowdown in the rate of resale price growth. Public housing resale prices increased by just 1.6% in the most recent quarter, a significant deceleration compared to the 2.6% rise in the previous quarter and below the 2.3% average growth throughout 2024. This marks the slowest pace of increase since early 2024.
This trend of price moderation is a positive signal for potential policy adjustments. The government has indicated that the 15-month wait-out rule was always intended as a temporary solution, contingent on market conditions.
Factors Behind Rising Prices
The earlier increase in resale flat prices can largely be attributed to an imbalance between supply and demand. Construction delays during the COVID-19 pandemic disrupted timelines for Build-To-Order (BTO) projects, causing many homebuyers to turn to the resale market.
In total, 92 BTO projects involving over 72,000 flats experienced delays due to pandemic-related disruptions. As of March 8, all 75,800 affected units have been completed. Despite this recovery, the temporary supply shock intensified competition in the resale market and led to price escalations.
Demand was also driven by shifting lifestyle expectations and preferences, as more families sought faster housing options amid uncertainty around construction delays.
Optimism for Price Correction
Looking ahead, there is optimism that resale flat prices will continue to stabilise. From 2026 onwards, a significant number of new flats will reach their Minimum Occupation Period (MOP), allowing owners to resell them on the open market.
However, the supply of such flats will be limited in 2025. Estimates suggest only about 6,974 flats will reach MOP, the lowest figure in over a decade. This is expected to be a temporary dip, as MOP flat supply is projected to more than double to over 13,000 units by 2026.
As more units become eligible for resale, along with a sustained increase in new BTO launches, the overall market supply is expected to improve. This should alleviate some of the current pricing pressures in the resale segment.
Sustained Public Housing Development
The government remains committed to increasing public housing supply. Between 2021 and 2025, over 100,000 flats have been launched. Over the next three years, a minimum of 50,000 additional units are expected to be built. In 2025 alone, around 19,000 households are projected to collect keys to their new homes, reflecting steady progress in key handovers.
Efforts are also underway to enhance liveability in new towns. Developments located further from town centres and amenities will benefit from improved infrastructure and public services, achieved through collaboration between the Ministry of National Development and various government agencies.
Revitalising Older Estates
In parallel with expanding new developments, the government is prioritising the renewal of ageing public housing estates. Selected blocks in Toa Payoh are set to be included in the Silver Upgrading Programme, which aims to improve accessibility, safety, and comfort for senior residents.
This dual focus on increasing supply and enhancing liveability demonstrates a comprehensive strategy to meet Singapore’s housing needs, while adapting policies based on real-time market conditions.
Algene Toh
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