Forum: Relook practices governing resale of HDB flats
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It is crucial for HDB to urgently review some of its resale practices, given the surge in housing prices.
One pressing issue is the outdated $1,000 option fee, which no longer reflects current market conditions. To keep pace with rising prices, the option fee range should be adjusted, giving buyers and sellers the flexibility to negotiate a fair deposit. This change would lead to better decision-making and more balanced transactions.
Another immediate concern is the valuation process. Valuations often vary between valuers, with inconsistent pricing even for similar flats within the same block and period. This inconsistency highlights the need for clearer, updated valuation criteria.
The current method, which relies heavily on past transactions, fails to account for market changes, especially when transactions are limited or the units sold have different features like layout efficiency or orientation. Moreover, the valuation process does not adequately consider factors like whether a unit is vacant or requires an extension of stay.
It’s clear that the existing approach is outdated and fails to capture the true value of homes in today’s market.
Zhang Jinwei
