{"id":122114,"date":"2021-09-21T01:53:56","date_gmt":"2021-09-20T18:53:56","guid":{"rendered":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/more-bto-flats-sold-within-a-year-of-reaching-mop-doubles-from-2016-to-2020\/"},"modified":"2021-09-21T10:07:09","modified_gmt":"2021-09-21T03:07:09","slug":"more-bto-flats-sold-within-a-year-of-reaching-mop-doubles-from-2016-to-2020","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/more-bto-flats-sold-within-a-year-of-reaching-mop-doubles-from-2016-to-2020\/","title":{"rendered":"More BTO flats sold within a year of reaching MOP, doubles from 2016 to 2020"},"content":{"rendered":"


\n13.4% of\u00a0BTO flats which reached their MOP were sold within a year, up from 6.5% in 2016.
\nThe Housing and Development Board\u2019s (HDB) statistics showed that the proportion of Build-to-Order (BTO) flats that were sold within one year of achieving their Minimum Occupation Period (MOP) has doubled from 2016 to 2020.
\nThe housing agency told TODAY that the proportion of such flats being sold increased steadily from 6.5% in 2016 to 9.5% in 2017 and 11.8% in 2018.\u00a0
\nIn 2019, it rose by 12.2% and 13.4% in 2020.
\nThe percentage of sales for 2020 includes flats that commenced their MOP in 2015 and were sold as of 31 August this year.
\nRelated article:\u00a073 Freshly MOP-ed HDB Resale Flats in Singapore to Expect in 2021\/2022
\nNotably, owners of BTO flats must physically occupy their flats for five years before they can sell the flats in the open market.
\nProperty analysts attributed the trend of selling BTO flats within one year of achieving MOP to several reasons.
\nPropNex Realty CEO Ismail Gafoor said it is due to a continued desire among Singapore\u2019s new generation of homeowners to live in private property.
\nNoting that the trend also coincides with the growing number of Singaporeans living in private residential properties in recent years, Christine Sun, OrangeTee\u2019s Senior Vice President of Research and Analytics, said couples looking to upgrade would sell their BTO units earlier since they believe the flat would fetch a higher price if it comes with a longer lease.
\nAnalysts believe the trend may also be driven by demand for newer BTO flats with longer leases, given the increasing prices of HDB resale units.
\n\u201cEven if they live in it for 10 years, the remaining lease will still be quite long when they decide to sell it,\u201d said Nicholas Mak, ERA Realty\u2019s Head of Research and Consultancy, as quoted by TODAY.
\nAnalysts pointed that some homeowners may have sold their flats within a year of MOP due to personal reasons, such as moving to live near their workplaces, parents, or children\u2019s schools.
\nThey noted that while BTOs located in central or mature estates and near amenities like MRT stations tend to cost more, they fetch better resale prices once they reach their MOP.
\nAn analysis of this year\u2019s resale prices by PropNex showed that flats within mature estates such as Queenstown and Bukit Merah, which achieved their MOP this year, registered better average resale prices. A four-room flat in Queenstown had an average resale price of $839,711, while a similar unit in Bukit Merah was priced at $855,511.
\nOver in non-mature estates, resale prices were lower. A four-room flat in Chua Chu Kang that reached MOP this year achieved an average resale price of $466,032, while a similar flat in Punggol was sold for 502,437.
\nLee Sze Teck, Senior Director of Research at Huttons Asia, however, cautioned against acquiring a BTO flat with the intention of flipping it for profit since this practice may drive an increase in resale prices and cause a housing bubble.
\n\u201cIf it is the aim of BTO buyers to flip their flat upon reaching the MOP, it is an unhealthy trend and the authorities should look into this,\u201d he said as quoted by TODAY.
\nMeanwhile, HDB explained that the MOP ensures that HDB flat owners acquire BTOs to live in the unit instead of reselling them for profit.
\n\u201cIt deters speculative purchase of HDB flats and helps to keep these flats affordable for those with genuine housing needs,\u201d said HDB as quoted by TODAY.
\nLooking ahead, analysts expect the pandemic-induced delays to the construction of BTO projects to drive up demand for flats that have just achieved their MOP.
\nMak believes the demand for such flats will be driven by people looking for a new flat but are unsure when they would be able to secure a BTO.
\nIsmail also expects the trend to be driven by the rising HDB resale prices, adding that the proportion of those selling their BTOs within one year of achieving MOP may hit 15% this year.
\nLooking for a property in Singapore? Visit PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\nCheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email:\u00a0cheryl@propertyguru.com.sg.\u00a0
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…More BTO flats sold within a year of reaching MOP, doubles from 2016 to 2020<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

13.4% of\u00a0BTO flats which reached their MOP were sold within a year, up from 6.5%...<\/p>\n","protected":false},"author":1,"featured_media":122115,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-122114","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-news"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/09\/HDB-EIP.jpg?fit=820%2C410&ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-vLA","jetpack-related-posts":[{"id":113985,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/newer-hdb-flats-reach-record-sales-in-2019\/","url_meta":{"origin":122114,"position":0},"title":"Newer HDB flats reach record sales in 2019","date":"January 31, 2020","format":false,"excerpt":"\r A lot of home owners lately have been selling off their Housing Board flats once they reach the minimum occupancy mark, reported The Straits Times. 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Situated along Weld\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/10\/rochor-bto-plh.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":101540,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hdb-terrace-near-whampoa-sold-for-record-1-185m\/","url_meta":{"origin":122114,"position":2},"title":"HDB terrace near Whampoa sold for record $1.185m","date":"November 22, 2018","format":false,"excerpt":"\r A total of 52 million-dollar HDB flats have been sold to date this year.\u00a0 A Housing and Development Board (HDB) terrace house along Jalan Bahagia near Whampoa was sold for $1.185 million in September \u2013 setting a new record for the priciest HDB unit sold, reported Channel NewsAsia citing\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":122878,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/new-prime-area-housing-model-may-boost-demand-for-flats-in-nearby-areas\/","url_meta":{"origin":122114,"position":3},"title":"New prime area housing model may boost demand for flats in nearby areas","date":"October 29, 2021","format":false,"excerpt":"\r Future HDB flats launched under the PLH model have tighter rules\u00a0like an extended MOP period of 10 years, which may push potential buyers towards flats in city-fringe areas that are not subject to such restrictions. 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