What effect did the 15-month wait-out rule have on private rentals?

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The 15-Month Wait-Out Rule Drove Up Demand for Private Rentals

The introduction of a 15-month wait-out period for private property owners selling their homes before purchasing a non-subsidised resale HDB flat has directly contributed to increased demand for private rental properties. This measure, intended to cool the public housing market, has compelled individuals who have sold their private homes to seek rental accommodation for the duration of this mandated waiting period. Previously, private property owners could buy an HDB resale flat and were given six months to divest their private property.
Increased Demand from Home Sellers

Affected private home sellers are now looking to lease properties for the entire 15-month duration stipulated by the new regulation. This segment of the market was not a primary driver of rental demand before the rule change, as these individuals previously had a six-month window to transition between properties. The extended waiting period necessitates a longer-term rental solution for this group, thereby boosting overall demand in the private rental sector.
Impact on Rental Prices

The surge in demand stemming from the wait-out rule, alongside other factors like delayed private housing project completions and the return of foreign students, has led to a significant increase in private rental prices. In 2022, private rental prices in Singapore experienced a nearly 30 per cent jump, representing the largest annual increase since 2007. This rise followed a substantial 9.9 per cent increase in 2021.
Government's Intention vs. Secondary Effect

The government implemented the 15-month wait-out period in September to curb escalating HDB resale prices. However, property experts have observed that this cooling measure has had an unintended secondary effect on the private rental market. The necessity for private property owners to rent while awaiting eligibility for HDB resale flat purchases has created additional pressure on rental availability and pricing.

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What effect did the 15-month wait-out rule have on private rentals?

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