Should You Sell your HDB Flat Now?
Singapore has created a unique property market wherein government homes are on par with private housing and condominiums. Through the tireless efforts of the HDB (Housing Development Board), government housing has become the leading choice for many Singaporeans for their first home.
HDBs are very easy to acquire these days; there was a time when the market was completely controlled by the government and you could only buy Build to Order (BTO) HDB flats. But now, with the new development projects of the HDB comes the ability for flat owners to sell their property.
What are Possible Reasons for Selling?
There are a myriad of reasons as to why HDB flat owners would ever decide to put their property on the market. Some look to flip their properties to pay off their mortgages and loans while there are also those who are looking to make use of the real estate market to earn a quick buck.
But since people are not allowed to own more than one HDB unit at a time, some owners may also consider selling their current flat in order to get a new one. Others may find that they would like to move to other newly built units, while there are also those who want to upgrade to executive private housing such as condominiums or privately owned homes. Then there are also those who simply want to relocate somewhere closer to their work or school areas, the central town area, or the MRT.
Factors that Could Affect Sales
One is the supply of flats that are injected by the HDB during a certain period. There are years when the HDB releases new plans for HDB neighborhoods encouraging consumers to invest in BTO flats. The more flats they release, the lower the price – it’s basically supply and demand.
BTO flats are also considered to be generally cheaper, but they take 2-3 years after buying to be ready. This is in stark comparison to the quickness of simply buying a resale of an older HDB flat.
Sellers should also be aware of the season when new Executive Condominiums will come into the market. These new ECs will attract HDB tenants to upgrade their homes and in so doing will more likely look into selling their flats. The more owners engage in this behavior, the more empty flats will get injected into the market.
Finally, consider future developments around your area such as MRT extensions, new town centers, and shopping malls. These factors will drive up the market value of your area and can be used as a reason for price hikes. At the same time if other areas outside your neighborhood are experiencing these developments, the expect the house pricing ceiling to be lower.
To Sell or Not to Sell?
Before you put up an ad for an HDB for Sale, Singapore’s property market should be taken into account at all times. As it is in a state of relative flux, the key to gaining the greatest profit is to find the best time to sell. Do it when the market is not receiving an injection of property from either new developments or from users who want to move en masse. This will make sure that the supply for property is stable and you don’t have to compensate trying to compete with their prices.
Now that all factors have been considered and you’ve decided that it would really be best to sell your flat, then it’s time for you to enter the market. Enter our Ohmyhome app. Free, easy to use, and intuitive in design, our platform allows for sellers and prospective buyers alike to communicate with one another regarding HDB transactions without the need for a middleman.