Oral Answer by MND on trend of HDB resale flat prices and cash-over-valuation over the last 12 months and new measures that HDB will put in place to support families opting for resale flats in view of the prolonged completion of BTO flats due to COVID-19
Jul 26, 2021
Mr Desmond Choo: To ask the Minister for National Development (a) how have HDB resale flat prices and cash-over-valuation trended over the last 12 months; and (b) what are the new measures that HDB will put in place to support families opting for resale flats in view of the prolonged completion of BTO flats due to the COVID-19 pandemic.
HDB resale flat prices registered an increase of 5% in 2020, and 6% in the first half of 2021. The proportion of buyers who paid a cash-over-valuation (COV) increased from around one in five in 2020 to slightly above one in three in the first half of 2021. The majority of buyers did not have to pay any COV, and the median COV has remained at $0.
For flat buyers who have been affected by BTO delays and who cancel their BTO flats to buy a resale flat due to urgent housing needs, HDB will consider waiving the forfeiture of the option fee or five per cent of the flat purchase price based on an assessment of the flat buyers’ specific circumstances. HDB will also consider waiving the one-year wait out period to allow first-timer families with urgent housing needs to receive housing grants if they decide to buy a resale flat.
Resale flats are generally available for immediate occupation, and buyers can choose from a wide range of flats, according to their preferences and budget. Eligible first-timer families can receive up to $160,000 in grants when they buy a resale flat. We will continue to monitor the market situation to ensure that it remains stable and sustainable.