The Ministry of National Development (MND) has announced the removal of the 15-month wait-out period for private residential property owners purchasing non-subsidised Housing Development Board (HDB) resale flats. This policy change comes as the objectives of moderating demand, prioritising first-time buyers, and maintaining affordability have been achieved.
According to Christine Sun, Chief Researcher and Strategist at Realion (OrangeTee & ETC) Group, the stabilisation of resale flat prices and a decrease in Build-To-Order (BTO) application rates have contributed to this decision. “Prices posted their second consecutive quarterly decrease in Q2 2026,” Sun noted, highlighting a 0.4% dip in the first half of 2026, reversing previous gains.
The demand for HDB’s BTO flats has also eased, with application rates falling to 3.4 in June 2026, down from 3.7 in October 2025. This indicates that the increased supply of BTO flats is meeting current housing demand. Additionally, the resale market has seen a drop in transactions, with only 6,396 resale flats sold in Q2 2026, the lowest since Q2 2020.
The removal of the wait-out period is expected to boost demand and prices for larger resale flats, as private homeowners, often cash-rich, seek more spacious options. However, Sun predicts that any price spikes will be contained within the premium segment due to the ample housing supply.
In the rental market, demand for small condos and large HDB resale flats may decrease as locals no longer need to lease during the wait-out period. Consequently, rental price growth is expected to slow in the coming months.
