In 2023, the resale market is expected to see a new batch of homes that have completed their 5-year minimum occupation period (MOP). Homeowners of HDB flats and Executive Condos (ECs) will be free to sell or rent their properties once they reach the MOP.
Approximately 15,000 HDB flats and over 4,100 ECs are projected to enter the resale market this year.
Here’s a list of estimated MOP residential units available in 2023 for prospective buyers to consider.
For first-time HDB flat buyers who don’t want to wait for the completion of new Build-to-Order (BTO) flats, resale units in these projects may be a suitable option (as listed in Table 1). Eligible first-timers can also access up to $160,000 in housing grants to assist with financing their purchase. These newly MOP-ed flats are nearly as good as new, with a substantial remaining lease balance. HDB upgraders looking to relocate or upgrade to a larger flat may also be interested in these flats.
Table 1: HDB flats reach MOP in 2023
For those with a tighter budget, suburbs such as Jurong West, Sembawang, Woodlands, and Yishun may offer more affordable resale options. For example, the average transaction prices for 4- and 5-room flats in Jurong West were around $480,000 and $563,000 respectively in 2022 (as listed in Table 2).
Table 2: Average HDB Resale Prices Transacted in 2022 (till 15 December)
For HDB upgraders who are deterred by the high prices of new private condo launches, the private resale market, including executive condos, is worth considering. Over 4,100 EC units are expected to reach their 5-year MOP in 2023, making them eligible to be resold to Singaporeans and Permanent Residents (PRs) on the resale market.
Resale ECs offer a more affordable option in the private home market. According to URA Realis caveat data, the average price of resale ECs was $1,096 psf in 2022 (as of December 9th), lower than the average price of $1,329 psf for new ECs and also lower than the average transacted resale price of $1,266 psf for OCR private condos (excluding ECs) and $1,934 psf for new OCR non-landed private homes (excluding ECs) in 2022 (as of November 9th).
Table 3: Executive Condo Projects reaching MOP in 2023
Buying newly MOP-ed ECs offers the advantage of owning an almost new property, only 5 years old.
There is also potential for capital growth in the future as these projects can be sold to foreign buyers after 10 years from the date of completion (TOP date).
Wondering if it’s the right time to buy, sell, or wait it out?
These decisions can be tough, and there isn’t a one-size-fits-all answer.
But don’t worry, that’s where we come in!
At Let’s Talk Property, we are here to provide clarity to you and guide you step-by-step in your real estate journey!
Whether you’re a first-time buyer or a seasoned investor, we hope to partner with you to create a clear plan that’s tailored to your unique needs and provide objective guidance to help you make the best real estate decision.
So, if you’re looking to buy, sell, or just want to chat about your real estate options, we’re here for you!
With our extensive on-the-ground experience, you can trust us to provide a top-notch real estate experience that’s both informative and stress-free.
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P.S. HDB Owners, with so much UNCERTAINTY, Should you BUY, SELL or WAIT?
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