After close to four years, the Ministry of National Development (MND) announced on 28 July 2026 that the 15-month wait-out period would be removed with immediate effect. Private property owners can now sell their property and purchase a non-subsidised HDB resale flat without serving the additional waiting period.
The measure was introduced in September 2022, when the HDB resale market was facing strong demand and rapidly rising prices. By slowing the flow of private property owners into the resale flat market, the Government aimed to moderate demand and create greater separation between the public and private housing markets. Private property owners may have access to substantial proceeds from the sale of their homes, allowing them to compete more aggressively with existing HDB households, particularly for larger or more desirable resale flats.
According to MND, the lifting of the 15-month wait-out period follows “several quarters of price moderation in the HDB resale market, which is showing signs of stabilisation”.
The removal will make it easier for private property owners to right-size into an HDB flat, without first having to find a temporary home and moving at least twice before they could finally right-size into an HDB flat.
At the same time, it could also change demand patterns across the HDB resale, private residential and rental markets.
Pent-Up Demand From Private Property Owners Looking To Buy HDB Flats
In the near term, removing the 15-month wait-out period would encourage more private property owners to reconsider moving into an HDB resale flat.
Some owners may already have been planning to cash out from their condominium or landed property and move into a more affordable, and possibly larger, HDB flat. Under the previous rules, however, they had to weigh the cost and inconvenience of renting for 15 months after selling their private property. Besides paying rent, they also have to deal with the logistical hassle of moving twice: first into a temporary rental home, and later, after waiting at least 15 months, into their HDB flat.
Removing the wait-out period makes the right-sizing process more straightforward. Private property owners can now sell their home and proceed to purchase a non-subsidised HDB resale flat immediately. This could unlock some pent-up demand among private property owners looking to buy a resale HDB flat.
Larger & More Desirable HDB Resale Flats Should See Stronger Demand
This could also lead to stronger demand for certain types of HDB resale flats. Larger and less common units, such as executive apartments, executive maisonettes and jumbo flats, may appeal to former condominium owners who want more living space without paying private property prices.
For example, an owner who sells an entry-level condominium for $1.4 million and buys a large HDB resale flat for $900,000 would have a gross price difference of $500,000. Beyond unlocking part of their housing equity, the owner may also gain more living space.
The policy change could therefore lead to a modest increase in private resale listings while lifting demand for larger HDB resale flats. This may place some upward pressure on HDB resale prices, particularly in the near term, which was one of the key concerns the 15-month wait-out period was originally introduced to address.
Private Resale Transactions Could Rise While Rental Demand Could Ease?
The removal of the 15-month wait-out period could support transaction activity in the private resale market while easing some rental demand.
Owners who had delayed selling their condominium or landed property to avoid renting for 15 months may now be more willing to put their homes on the market. For a household paying $3,500 a month, 15 months of rent would cost $52,500, before agent fees and moving expenses.
Without the wait-out period, these households can better coordinate the sale of their private property with the purchase of an HDB resale flat. Some may still need temporary accommodation if completion dates do not align, but they would no longer have to rent solely to meet the policy requirement.
This could bring more private homes onto the resale market while reducing rental demand from families planning to move back into HDB housing.
Less Friction Could Ultimately Support Higher Transaction Volumes
The removal of the 15-month wait-out period reduces one of the biggest frictions for households moving from private property back into an HDB resale flat. With fewer concerns over renting, moving twice and timing two separate transactions, some owners may be more willing to bring forward their right-sizing plans.
This could lead to higher transaction volumes across both the private resale and HDB resale markets. Private owners may be more prepared to sell, while larger HDB resale flats could attract more demand from households looking to unlock housing equity without giving up living space.
The change may also influence existing HDB owners considering a private property purchase. Knowing that they can return to the HDB resale market without serving an additional 15-month wait-out period may make the move into private housing feel less permanent and reduce the perceived downside of upgrading.
Overall, we believe the policy change is likely to make it easier for households to adjust their housing choices as their finances and family needs change. The main question, though, is how much of this pent-up demand will translate into actual purchases and sales, particularly in the short term.
Photo Credit: DollarsAndSense/Soh Qi Hang
