Every year, a fresh stock of homes that have exited the 5-year minimum occupation period (MOP) presents themselves on the resale market. Owners of these HDB flats and Executive Condos (ECs) are now free to put them up for sale or lease after attaining the MOP.
In 2023, over 15,000 HDB flats and more than 4,100 ECs could make their resale debut. Here’s a list of the estimated 2023 MOP residential units that buyers can watch out for.
HDB flats
First-timer flat buyers who do not wish to wait for new BTO (Build to Order) flats to be completed can seek potential resale units in these projects (see Table 1). In addition, eligible first-time buyers can tap up to $160,000 in housing grants to help to finance the resale flat purchase. Being newly MOP-ed, these flats are almost good as new and still have a lengthy remaining lease balance. Meanwhile, HDB upgraders who are seeking to move to a different location or to a larger flat may also be keen on them.
Of the list of flats that could reach MOP in 2023, Cheng San Court in Ang Mo Kio and Toa Payoh Apex will likely be among the more sought-after projects given their relatively central locations within mature towns. However, resale flats in these towns are usually pricier (see Table 2) – the average price for 4-room resale flats in Ang Mo Kio was more than $593,000, while that of 5-room flats was over $808,000 in 2022 (till 15 December).
Those with tighter budget may want to look at potential buying options in the suburbs such as Jurong West, Sembawang, Woodlands and Yishun, where resale prices are generally more affordable than the popular estates in more central locations. For instance, the average transacted prices of 4- and 5-room flats in Jurong West was about $480,000 and $563,000 respectively in 2022 (see Table 2).
Executive Condos
HDB upgraders who are put off by the higher prices in the private condo new launches can explore the private resale market, including executive condos. More than 4,100 EC units (see Table 3) are due to meet their 5-year MOP in 2023, making them eligible to be resold to Singaporeans and Singapore PRs on the resale market.
Resale ECs are among the more affordable private homes in the market. In 2022 (till 9 December), the average price of resale ECs was $1,096 psf – lower than $1,329 psf for new ECs – according to URA Realis caveat data. It is also lower than the average transacted resale price for OCR private condos (ex. EC) which came up to $1,266 psf and new OCR non-landed private home sales (ex. EC) at $1,934 psf in 2022 (till 9/11 December).
Buying freshly MOP-ed ECs ensures that the property is almost brand-new being just 5 years old. In addition, there is also a good potential for capital gains in the future when the projects can be sold to foreigners (after 10 years from TOP date). Speak to a PropNex agent today to find out more about resale opportunities and which properties best suit your budget and needs.
Source: PROPNEX
Read more: What is the HDB Flat Eligibility (HFE) letter?, The Continuum, New Private Home Sales Surged To A 7-Month High In April On Healthy Demand For New Launches
