The HDB resale market is in the doldrums (HDB resale prices dip 0.6% but sales rise; March 9).
Buyers are spoilt for choice, with batch after batch of Build-To-Order (BTO) flats being rolled out. Resellers, meanwhile, are having a hard time and have to sell below market value, even in mature estates.
The situation is particularly painful for those whose BTO flats are ready but are unable to take delivery, as they have not sold their existing homes.
I am in this situation, and have been told by many agents that I am not the only one.
It is a double whammy for resellers.
First, they go into negative equity when they sell their existing homes below market value and, yet, have to pay for their new homes at market price.
Second, they must sell their existing homes within a limited time period, failing which, the Housing Board will charge a hefty interest for the delay in taking delivery of the new BTO flat.
I hope HDB can give a breather to these people, as their plight was caused by the glut of new flats in the property market.
Dennis Tan Seow Koon