In an exciting update for private property owners in Singapore, approximately one in every four appeals to bypass the 15-month wait-out period for purchasing an HDB resale flat has received approval since the rule was enforced!

The Housing and Development Board (HDB) reported that since implementing the regulation on September 30, 2022, they've processed around 5,500 appeals, approving 25% of them after meticulous consideration of each case's unique circumstances.

This wait-out period is aimed at cooling the HDB resale market, which has been heating up due to demand from private property owners looking to downgrade. It prioritizes public housing for those with urgent housing needs, ensuring equitable access for all Singaporeans.

Notably, the rule mainly affects private property owners and former owners wishing to purchase a non-subsidized HDB resale flat. However, those aged 55 and older purchasing smaller flats (four-room or below) are exempt.

Anticipating changes, National Development Minister Chee Hong Tat hinted that the 15-month rule might be relaxed before 2027, given the expected rise in the availability of new and resale flats.

Since the inception of this rule, analysts have observed a significant shift in the resale market dynamics, particularly with larger flats. For instance, the number of five-room flats resold plummeted by 22.5% between January and March 2025 compared to the data from just before the rule was enacted.

Further emphasizing this trend, the sales of executive flats saw an even steeper decline of 32.1% during the same timeframe, suggesting the wait-out rule is effectively curbing demand from private property downgraders.

Despite the cool-down, some market experts argue that more flexibility is needed, especially for private homeowners facing unexpected life challenges like job loss.

As we move forward, the HDB resale price index (RPI) saw a slowdown after the rule's effect but rebounded as eligible private home sellers returned to the market. From January to March 2024, resale transactions surged to 7,068 units with a quarterly increase of 1.8% in the RPI.

Looking ahead, price growth appears to be increasingly influenced by buyer preferences for newer flats, which are appreciating at a faster rate compared to older ones. Buyers are increasingly cautious about lease decay issues, pushing them towards newer units.

Big changes are on the horizon, with HDB planning to launch over 50,000 new flats between 2025 and 2027, including Shorter Waiting Time flats, to further stabilize the market.

As the supply of flats meets the growing demand, the landscape of homeownership in Singapore may shift dramatically, perhaps leading to a reconsideration of the 15-month cooling measure—a thrilling possibility for hopeful homeowners awaiting their dream abode!