On Wednesday, Mr Chee was asked about the impact of the number of flats reaching MOP, as well as a report on 141 million-dollar flats sold in April – an all-time high.
According to a February report from property firm OrangeTee, the number of flats obtaining their five-year MOP is projected to fall for a third consecutive year from 30,920 units in 2022 to 6,974 units in 2025. This is the lowest MOP number in 11 years, with the previous low occurring in 2014 with 5,301 units, said the report.
However, its analysts also said that a “big surge” in resale prices is “unlikely” since more BTO flats will be launched for sale.
Given these reports, Mr Chee was asked if the government sees the need to intervene in the housing market.
He said that the authorities will monitor the situation carefully, but also pointed to the easing of the resale price index.
“We feel that one of the ways to address this is to increase the supply, the supply of new BTO flats. But also to give the market some time to adjust to a higher supply of resale flats starting from 2026,” he added.
Mr Chee said that the authorities previously introduced the 15-month wait-out period for private property owners before they can purchase a non-subsidised HDB flat.
Introduced on Sep 30, 2022, this rule has notably reduced the proportion of private property owners buying high-priced resale flats.
“This restriction was put in place as a temporary measure, precisely because there were concerns about higher resale flat prices. But this is not meant to be a permanent measure, so I hope that when the situation improves and the resale flat prices begin to moderate, we are able to consider reviewing or even removing this restriction,” he said.
VERS
Asked if details on the Voluntary Early Redevelopment Scheme (VERS) will be announced during his tenure with the ministry, Mr Chee said that the authorities will share details at the “appropriate time”.
“It’s something that we will definitely study very carefully. It’s an important topic that I know is close to the hearts of many Singaporeans, existing flat owners and also the industry,” he said.
VERS was first mentioned by then-Prime Minister Lee Hsien Loong during his National Day Rally in 2018 as a way of dealing with expiring 99-year leases.
The plan is to offer the scheme in selected precincts when the flats are aged about 70 years or older. The government will compensate residents whose flats are taken back early and help them get another flat to live in.
Mr Chee said that revitalising older HDB estates and towns is an “important area” of focus for his ministry.
“It’s important for us to look at – as our estates age, and our population ages – how do we continue to rejuvenate our towns so that they are good homes for residents of all ages,” he added.
