Given higher HDB resale prices and given that million-dollar HDB resale units are becoming more common these days, the current option and exercise fees seem too little to be a fair consideration for the price of a unit (HDB resale volume in July highest in two years; prices also up, Aug 7).

Let's take, for example, a typical resale four-room flat in a mature estate selling for $800,000. The buyer has to come up with an option fee of $1,000 and, thereafter, a $4,000 exercise fee.

The $1,000 represents just 0.125 per cent of $800,000. The Housing Board should look into setting the option fee at a certain percentage, like the standard private residential option, or perhaps having a tiered fee structure for different price bands.

Likewise, it is time to review the 21-day option period. Is there a need for such a lengthy standard option period? Probably not, if the buyer is already required to get his loan assessed before placing an option fee. Moreover, valuation takes only five working days.

A shorter option period will improve decision-making, and overall, quicken the entire resale flat transaction process. It is unfair to lock the seller down for the 21-day option period.

Zavier Zhang