Recently MOP-ed apartments appeal to mostly to younger singles or families that desire a new house with no wait.
In the forthcoming months, we might be seeing a increase in demand for newer HDB apartments — especially jobs which have recently achieved their Minimum Occupation Period (MOP).
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Why purchase a recently MOP-ed HDB resale flat?
Underneath HDB regulations, owners should dwell in a newly-bought HDB apartment for five years before they’re permitted to market their house — a movement meant to curb speculation and’flipping’.
For BTO jobs, the whole bunch of blocks will be inclined to hit MOP at roughly precisely the exact same time. After this occurs, there’ll inevitably be a couple of first-time owners seeking to cash in a gain for their merchandise, as a result of this below-market-value cost of apartments sold in BTO sales starts.
With approximately 94 from 99-years of rental remaining, recently MOP-ed flats surely appeal to buyers, particularly among younger singles and families alike who need a fresh apartment with no wait, while obtaining a remaining lease which could continue their lifetimes with potential for upside in a 5- to 15-year period frame.
In the minimum, the more recent a level, the more resilient its worth would be if the market or even the property market does not do this well in precisely the exact same period of time.
Therefore, even though recently MOP-ed HDB flats command a substantial price premium over elderly apartments, there are still buyers capable and prepared to pay the additional cash.