15-Month Wait-Out Period for Private Home Owners Buying Resale HDB Flats Officially Lifted

National Development Minister Desmond Lee announced the removal on Tuesday (Jul 28) at the Singapore Economic Forum. He said the cooling measures had proven effective in moderating prices and that it was timely to remove them. Supply has also increased, with a larger number of HDB flats completing their minimum occupation period and entering the resale market over the next few years.

The rationale for lifting the restriction entirely is strong. Based on the HDB Resale Price Index, prices declined by 0.1 per cent in Q1 and slipped another 0.3 per cent in Q2. This follows five consecutive quarters of slower or no price growth from Q4 2024 to Q4 2025.

Allowing people to more seamlessly trade private homes for resale public housing units promotes housing mobility, which is good for household well-being and managing household finances. The wait-out period had applied to private property owners after disposing of their private home before they could purchase a non-subsidised resale flat.

The removal of the wait-out period could further boost demand in the already high-flying premier end of the HDB resale market. In Q2 2026, the number of resale HDB flat transactions costing S$1 million or more reached 491, up 19.5 per cent quarter on quarter and 18.3 per cent year on year.

Locals aged 55 and above can now more easily sell a private home and buy an HDB resale five-room or executive flat. Some seniors might prefer getting a five-room or executive flat instead of a four-room flat because they need more space for the extended family.

Younger eligible private homeowners may also appreciate the greater ease of being able to sell a private home and buy an HDB resale flat, thereby freeing up capital to tide through rough financial conditions or fund urgent family needs or finance a business venture.

Analysts interviewed by Zaobao generally agree that removing the 15-month wait-out period will boost resale HDB demand for four-room, five-room and executive flat types, with some housing demand that may shift from every price segment in the market. However, they do not expect the overall resale price impact to be significant.

Newmark research head Wong Shanting noted that the resale market for four-room and five-room flat types could see moderately increased demand, as some private homeowners may look to the resale HDB market. She expects the demand will be more evenly distributed across each market segment, allowing overall housing prices to grow more sustainably.