Your HDB has reached Minimum Occupation Period (MOP) in year 2024. Now what?
I often find my inbox filling up with messages from clients as the countdown begins to the end of their Singapore HDB flat’s minimum occupation period (MOP).
It’s like a milestone in the journey of owning an HDB property, including those lovely Executive Condominiums, which usually involves a commitment of 5 years. During this time, there’s a little rulebook we need to follow: no selling your home on the open market or handing over the keys to the entire unit for rental.
And there’s another piece of the puzzle to keep in mind. If you’ve got your eye on a cozy corner in the private residential market, patience is key.
You’ll need to wait until this MOP chapter closes before making that dream a reality.”
And so, a majority of them reach out to me when their HDB BTO flat is approaching the MOP and is concerned that their flat price will drop if they don’t let go of their flat quick enough.
Table of Contents
No clear-cut strategies once HDB flat MOP is up
At present, there are no clear-cut strategies on the best move homeowners can take once their property has passed the MOP.
It really depends on your personal goals. Some may consider their home an ideal location to live near their workplace, school or in proximity to loved ones.
Others may view their properties as assets or investments that will potentially provide steady rental income or substantial sale profits in the future.
In this article, I’ll provide insights on some of the popular options available to homeowners and some tips on how to determine the best option that fits your plans and current situations.
Continue staying in the HDB flat after MOP
Option 1
The first option is to remain an occupant in the flat; however it is advisable to check the degree of depreciation of your property value.
For Build-to-order (BTO) flats, it is usually between the first to third year after MOP where you can sell at a ‘premium’ price and obtain a higher profit.
The main reason, is the assumed good condition of the flat because it is still new and also of the longer balance lease of the flat, within this time-frame.
This is still on a case-by-case basis, please consult a realtor for more accurate facts and figures.
Buy a Private Property and rent out HDB flat
Option 2
The second most preferred option is to buy a private property and rent out either property.
In this instance, one must not forget the Additional Buyer Stamp Duty (ABSD) which is mandatory when homeowners buy a second property.
Be warned that if you have an existing outstanding housing loan when you buy the second property, you will only be entitled to 45% housing loan funding for your second property.
The main drawback of this option is that it requires strong financial capital to be feasible.
Sell your HDB and upgrade to a Private Property
Option 3
The third option is to sell your flat and upgrade to a private property.
You can choose to buy the second property before selling your HDB flat.
This strategy eliminates the need for temporary accommodations in between the buying and selling of your properties.
Again, do bear in mind the ABSD, and the possibility that you may be rushing for time to sell your existing home.
Applying for ABSD remission may be applicable to legally married couples who purchase a second residential property jointly, only if the remission conditions are met.
It is important to remember that the couple must consist of at least one Singapore Citizen and the property must be purchased specifically under both names of the couple.
It is also mandatory to sell your first residential property within 6 months after purchasing the second one.
More details can be found on Inland Revenue Authority of Singapore’s (IRAS) website (www.iras.gov.sg). Alternatively, you can consult your property agent on this.
Expanding on the latter option, it is also plausible to sell your HDB flat first and use your CPF returns or cash proceeds to buy a private property.
I wish to highlight that this is a delicate process where your property agent must meticulously plan for the smooth transition and ensure proper accommodation for homeowners.
Sell your HDB and buy 2 Private Properties
Option 4
For those of you playing the property game, here’s an interesting move you might consider: selling your HDB home to step into the world of owning not one, but two private properties.
It sounds like a stretch, but with the right financial wizardry—think careful calculations and strategic planning—it’s entirely within the realm of possibility.
The secret? Making sure the funds from your CPF and the sale of your first HDB are hefty enough to split between two separate purchases.
Here’s a tip: it’s wise to use one of these new private spaces as your personal haven while letting the other work for you, either through rental earnings or by growing in value over time.
Stay tuned, because I’ll be diving deeper into this ‘Sell One Buy Two‘ strategy in another article that’s already a crowd favorite.
Do you know that HDB prices had increase more than 33% since 2020.
Let’s look at some genuine case studies:
Let’s look at how I helped my clients after their Hdb Mop (after their flats reach 5 years)
Case Study 1 - Sell One Buy Two
Mr. Ang and his family have been living comfortably in their 4-room flat in Punggol. As they approached the final month before their property’s minimum occupation period (MOP) was up in 2017, Mr. Ang reached out to explore his next moves.
After some conversations, it became clear that their objectives were threefold:
- To secure a property that promised a good chance of value growth,
- To adopt an investment strategy that was low on risk,
- To patiently wait for the perfect moment to make their move.
Given that they were in no rush to move into a new home immediately, I mapped out a strategy for both the near and distant future.
Following my advice, they decided to sell their Punggol flat. They then bought a fresh 2-bedroom condo at Parc Riviera, with Mrs. Ang taking ownership.
By 2019, after a thorough financial review and planning for Mr. Ang, he invested in a 1-bedroom resale condo that already had tenants. This move provided them with instant rental revenue.
Thereafter, with the good rental yields, the Angs decided to focus both properties for investments, reaching their final goal of low-risk investment and asset progression.
Case Study 2 - Change location to near parents
I met Mr and Mrs Chua in 2019. Their 4-room HDB flat in Kim Tian had passed MOP for a year and they were wondering about their next move.
I analysed and shared property transaction trends in their neighbourhood and together, we decided it was time to move on.
Their main priority is:
1)To stay closer to their parents and at the same time, nearer to the city.
Based on their requirements, I evaluated their personal finances and planned their property move such that they did not have to fork out any cash during the entire transaction period.
Eventually, the whole selling and buying transaction process was successfully completed within a month and with my guidance on proper timeline planning and coordination, they did not have to move to a temporary home in between.
Case Study 3 - Upgrade Condo For Asset Preservation
Before meeting up for a discussion, Mr. Teo had the desire to upgrade but was feeling confused and filled with self-doubt about whether he could afford it.
He sought advice from a few friends, but their answers were conflicting, which added to his uncertainty.
During our conversation, We dedicated time to exploring the financial aspects, including numbers and different funding methods, in a manner that was easily understandable for him.
Furthermore, I assisted him in comprehending the timeline associated with transitioning from selling his current property to purchasing the new one.
Mr. Teo is filled with joy now, knowing that he has provided his family with a better life.
Mr Teo condo have appreciated more than $250k in less than 2 years since 2022.
Conclusion
While you're busy trying to time the market, your friends might already be reaping the rewards of their investment profits.
Bonus for my readers
Ever find yourself pondering the ins and outs of selling your HDB flat?
You’re not alone!
From wondering about the best time to list to understanding the market trends, the questions can be endless.
Let’s turn those questions into answers.
Topics I will be covering during the session:
Understanding the Selling Process
Determining the Best Time to Sell
Setting the Right Price
Preparing Your Flat for Sale
Marketing Your Property
Navigating the Legalities
Financial Planning
The Impact of the Minimum Occupation Period (MOP)
Case Studies and Success Stories
FAQs
Who should apply?
MOP owners who are considering selling their HDB flat after fulfilling the Minimum Occupation Period (MOP) of five years.
First-time homebuyers who are interested in purchasing an HDB flat in Singapore and want to learn more about the process of selling a flat after MOP.
Anyone interested in the Singapore property market and wants to learn more about the HDB flat resale market.
Awards and Accolades
I have successfully helped hundreds of homeowners just like you since 2010
Property agent review - What my clients say about me
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Self Introduction
Hi, I’m Rick Long
With decades of experience in Singapore’s real estate market, I’ve had the privilege of being mentioned in media outlets such as Channel NewsAsia, The Straits Times, and 99.co.
Over the years, I’ve written extensively on the local property landscape — tackling the real questions buyers and sellers face, and helping them navigate each step with greater clarity and confidence.
Many of my clients have become long-time friends — their trust and kind reviews continue to inspire me to raise the bar in everything I do.
I believe real estate should be strategic, seamless, and deeply aligned with your life’s journey.
Related Articles:
Ever wonder if you are suitable for Sell one buy two investment concept? – Read more (Sell one buy two)
Is buying new launch or resale condo have better returns? – Read more (New Launch vs Resale condo)
Looking to upgrade from Hdb to condo? – Read more (Sell Hdb buy condo)
What to take note when selling Hdb resale flat? – Read more (Hdb Resale Process)
Buying another Hdb flat, and using the fund from current home? – Read more (Hdb contra)
Why do some Hdb flat price depreciate so much? – Read more (Hdb depreciation curve)
What is one of the most common reason for property negative sales? – Read more (Cpf accrued interest)
Financial calculation for selling a Hdb flat? – Read more (Hdb resale calculator)
Buying EC before selling your HDB? – Read more (Upgrade to EC before selling your HDB)
Should you sell your EC after 5 years? – Read more (Selling EC)
