Singapore May Scrap 15-Month Wait-Out Period for Private Property Owners Buying HDB Resale Flats

In a significant policy shift announced today (28th May 2025), the Singapore government is considering removing the 15-month wait-out period that currently affects private property owners seeking to purchase HDB resale flats. 

The current wait out has caused many private property sellers not to be able to buy HDB flats (or more importantly to downsize due to age or due to economic reasons such as retrenchment and loss of job).

This move could reshape the dynamics of the HDB resale market, especially for those looking to transition from private to public housing.

Understanding the 15-Month Wait-Out Period

Introduced in September 2022, the 15-month wait-out period mandates that private property owners wait 15 months after selling their private property before they can purchase a non-subsidised HDB resale flat. This measure originally aimed to moderate demand in the HDB resale market and ensure that flats remain affordable for buyers with genuine housing needs. But still many million dollars flats are being sold today (and still "monitoring" 😸).

However, exemptions exist. Seniors aged 55 and above who are moving from a private property to a 4-room or smaller resale HDB flat are exempted from this wait-out period. Note that BOTH conditions must be fulfilled. Both owners must be 55 and above AND the size of the HDB must be 4 room and smaller.

Between September 2022 and December 2023, about 940 senior households benefited from this exemption, accounting for under 4% of all resale transactions for 4-room or smaller flats during that period. 

Potential Policy Change and Market Implications

On May 28, 2025, Minister for National Development Chee Hong Tat announced that the government is considering removing the 15-month wait-out period, contingent upon continued moderation in HDB resale flat prices. He emphasized that this potential policy change aims to address the challenges posed by rising resale prices and to provide more flexibility for homeowners transitioning between private and public housing.

Recent data indicates that HDB resale price growth has eased to 1.6% in the first quarter of 2025, the slowest pace since the fourth quarter of 2023. This moderation suggests a stabilising market, which could support the removal of the wait-out period.

Impact on Homebuyers and the Housing Market

For Private Property Owners:

• Eliminating the wait-out period would allow for a smoother transition from private to public housing, reducing the need for interim housing solutions (such as rental) and associated costs.

For the HDB Resale Market:

• The influx of private property owners into the HDB resale market could increase demand, particularly for larger flats, potentially influencing prices to go up as cash rich private property sellers can now buy HDB flats quickly. Which was the reason for the 15 months period in the first place.

For First-Time Buyers:

• While increased demand might lead to price pressures, the government’s continued efforts to increase BTO supply aim to provide affordable options for first-time buyers.

Looking Ahead

The government's consideration to remove the 15-month wait-out period reflects its commitment to responsive housing policies that balance market stability with accessibility. As the housing landscape evolves, stakeholders will need to stay informed and adapt to policy changes that impact buying and selling decisions.