HDB resale price peak soon after MOP

HDB resale price peak soon after MOP

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HDB resale price peak

Every seller has their own reason for selling their HDB flat; some consider changing locations, some need a bigger space, some are looking at asset progression, or some are looking at cashing out. If you plan to cash out, historical data shows that HDB resale prices peak soon after MOP. We developed a BTO Profit Estimator that allows sellers to calculate their nett cash proceeds after selling their existing flat and buying their next flat.

Many sellers have the perception that HDB flats that have reached MOP are fetching higher resale prices.

Let's look at the data for Treetrail @ Woodlands, a BTO launched in September 2012, and Champions Court, a BTO launched in February 2009.

Indicative price for Treetrail @ Woodlands - BTO sales launch September 2012

Treetrial BTO price

HDB resale transacted price for Treetrail @ Woodlands - February 2022 (BTO September 2012)

Treetrial resale price Feb 2022

HDB resale transacted price for Champions Court - February 2022 (BTO February 2009)

Champions Court resale price Feb 2022

Source: https://services2.hdb.gov.sg/webapp/BB33RTIS/BB33PReslTrans.jsp

Supply and demand

As we all know, one of the factors that drive prices is supply and demand. For example, due to COVID-19 and the longer waiting time for new BTO flats, buyers turned to HDB resale flats, which drove up demand, hence the HDB resale flat price trending north.

Flats reached MOP vs older flats in the estate

For example, in Woodlands the new flats that reached MOP are:

Woodlands BTO flats information

The total number of new flats are 4,931 units as compared to 68,153 HDB flat (as of March 2018) in Woodlands.

Source: https://www.hdb.gov.sg/about-us/history/hdb-towns-your-home/woodlands

Other factors

You are competing with your neighbour who start selling their flats when they reach MOP.
There are many other factors affecting your flat price, like:

Sales strategies
Pricing strategies
• Conditions of your flat
• Conditions of sales - Temporary extension of stay
Timeline planning

Planning to sell your HDB flat when reaching MOP

When deciding to sell your HDB flat, your goal is to sell it at the highest possible price, lower your selling cost, and have peace of mind. Important financial planning allows you to maximise nett cash proceeds, position your CPF fund, and ensure a smooth selling and buying process.
For professional advice, feel free to schedule a non-obligation discussion now!.