Chart of the Day: Almost 20,000 HDB units per annum to hit MOP in 2020 onwards

Stable prices in the resale market may drive upgraders to buy a bigger home.

This chart from DBS Bank shows that close to 20,000 units per annum will come off their minimum occupation period (MOP) for HDB from 2020 onwards. Over the next 10 years, flats that will hit the MOP is estimated at 17,000-19,000 per year.

Higher volumes and stable prices within the HDB resale market are expected to drive upgraders, or homeowners who have already bought their first HDB homes, to buy a bigger home, whether due to a growing family or aspirational reasons.

“Whilst there is a significant number of households that can choose to upgrade to the private market, the timing of these households opting to enter the market remains uncertain for now. Developers will likely cater their projects to attract this market,” the report stated.

According to data from SRX, about 4,785 flats will be eligible to join the HDB resale market in the next three months.