Demand seen shifting to larger HDB resale units after wait‑out removal

Demand is expected to concentrate on larger flats.

The removal of the 15-month wait-out period for private property owners (PPOs) buying non-subsidised HDB resale flats could shift demand towards larger resale units, but analysts expect the impact on overall prices to remain limited as housing supply expands.

The policy change allows PPOs and ex-PPOs to purchase non-subsidised HDB resale flats without waiting 15 months after selling their private residential properties, provided they do not take an HDB housing loan.

Analysts said the removal could bring more private homeowners back into the HDB resale market, with demand expected to concentrate on larger flats such as five-room and executive units.

“The removal of the 15-month wait-out period will likely see the opposite effect, whereby demand and prices of bigger flats are expected to be boosted,” said Christine Sun, Chief Researcher & Strategist at Realion (OrangeTee & ETC) Group.

Sun said private homeowners often choose larger resale flats after selling their private homes as they seek more space and value.

However, she expects the impact to remain concentrated in specific segments, with premium transactions accounting for a minority of the market.

Kelvin Fong, CEO of PropNex, said the policy change could improve housing mobility for private homeowners looking to right-size.

“The removal of the 15-month wait-out period removes the awkward gap between selling and buying that the rule had imposed on former private home owners planning to purchase a resale HDB flat,” he said.

He added demand for larger resale flats could increase, noting that transactions for five-room and executive flats generally declined after the wait-out period was introduced in September 2022.

Huttons Data Analytics said the previous measure reduced demand for larger resale flats, whilst the removal could encourage PPOs and ex-PPOs to return to the market.

The consultancy expects the move to support the HDB resale market, which saw prices decline 0.4% in the first half of 2026.

However, Huttons said the policy change is unlikely to trigger a spike in resale prices as buyers continue to have alternatives including build-to-order flats, executive condominiums and private homes.

Mohan Sandrasegeran, Head of Research & Data Analytics at SRI, said the policy reflects a shift towards greater housing mobility after the HDB resale market entered a more balanced phase.

“The removal of the 15 months wait out period therefore should not be viewed as a broad relaxation of cooling measures, but rather as a targeted policy adjustment that restores flexibility in a market where price momentum has moderated,” Sandrasegeran said.

SRI said the expanding supply of resale flats will help absorb additional demand. It expects 13,484 flats to reach their Minimum Occupation Period in 2026, followed by 18,939 in 2027 and 21,393 in 2028.

CBRE said the policy could create near-term upward pressure on HDB resale prices and reduce rental demand from downgraders who previously needed to rent during the wait-out period.

“However, we do not expect either effect to be significant,” CBRE said.

Analysts also expect demand to become more segmented across the HDB resale market.

Realion said larger and newer flats in established locations could continue to attract buyers, whilst smaller and less well-located flats may see slower demand growth.

The policy change is expected to increase activity amongst private homeowners seeking to right-size, with demand likely to favour larger and well-located flats, whilst rising housing supply limits broader price pressure.