HDB flats reaching minimum occupation period (MOP)

Here’s the number of HDB flats reaching minimum occupation period (MOP) and entering Singapore’s resale market in 2020 and 2021

HDB flats reaching minimum occupation period (MOP)

Have you noticed the lift at your block being extra slow lately, as movers or renovators keep cramming into it? Or have you seen more strangers walking up and down the corridors of late, peering into nearby flats?

Consider it the result of a record-breaking 50,000+ flats reaching their Minimum Occupation Period (MOP) between 2020 and 2021. This is massive when you consider the 10-year average between 2010 and 2018 when only around 9,000 flats reached MOP every year.

We mentioned it in a previous article, where we discussed the resale flat market taking a U-turn.

However what’s of interest to most resale flat seekers are the new, five-year-old flats that are just now entering the market. If you’re seeking a flat right now, these are the most alluring choices as you can move in immediately, plus the lease decay is practically irrelevant.

Here’s where you might find them:

Why are new flats reaching MOP more desirable than older resale flats reaching MOP?

This is due to the simple fact that HDB flats are on 99-year leases. Flats that are only five years old still have significant resale potential or legacy value. In addition, these flats are likely to be better maintained.

As a further bonus, those who sell their new flats right after MOP are often upgraders; they would have been planning to move out soon after.

They often keep renovations to a minimum, as the flat is transitory to them; this can mean it’s quicker for you to renovate and move in (there are fewer walls, floors, cabinets, etc. to hack up).

On the downside, any new flats reaching MOP in 2020 or 2021 would have been completed in 2015 to 2016; note that these newer flats tend to be smaller than flats built in, say, the 1980’s or 1990’s.

20201123 hdbsupply stacked
Photo Source: Stackedhomes

For those wondering, here are the upcoming MOP HDB flats as compared to the HDB supply by HDB estate.

New flats reaching MOP between 2020 to 2021:

Note: The following are estimates only; we have based the numbers on projects completed in 2015 and 2016 (as MOP is calculated from the time of key collection, not the launch date of the BTO project)

We have focused on 3, 4, and 5-room flats as these are the most commonly sought-after units.

Again, these are the newest (BTO) flats reaching their 5th-year mark; we have not included older resale flats that are reaching their MOP.

1. Bedok (320 units)

NameEst. Completion Date3-room4-room5-roomEst. total
Ping Yi GreensQ4 201584236320

2. Bukit Batok (488 units)

NameEst. Completion Date3-room4-room5-roomEst. total
Skyline I @ Bukit BatokQ2 201678216194488

3. Bukit Merah (796 units)

NameEst. Completion Date3-room4-room5-roomEst. total
Depot HeightsQ3 2016128176304
Telok Blangah RidgeviewQ1 201696396492

4. Bukit Panjang (862 units)

NameEst. Completion Date3-room4-room5-roomEst. total
Fajar HillsQ4 2015146392324862

5. Choa Chu Kang (6,250 units)

NameEst. Completion Date3-room4-room5-roomEst. total
Sunshine GardensQ2 20151187885181,424
Keat Hong PrideQ2 2016806564071,143
Keat Hong AxisQ1 20161405203721,032
Keat Hong QuadQ1 2016334190524
Keat Hong MirageQ3 20161145594861,159
Keat Hong ColoursQ4 2016136484348968

6. Clementi (962 units)

NameEst. Completion Date3-room4-room5-roomEst. total
Clementi RidgesQ3 2016156312216684
Clementi GatewayQ3 2016134144278

7. Geylang (779 units)

NameEst. Completion Date3-room4-room5-roomEst. total
MacPherson ResidencyQ4 2015211426637
Greentops @ Sims PlaceQ4 2015142142

8. Hougang (1,714 units)

NameEst. Completion Date3-room4-room5-roomEst. total
CapeviewQ1 2015108429244637
Dew CourtQ1 2015181181
Hougang Park EdgeQ2 2016136204238578
Hougang CrimsonQ4 2016104210314

9. Jurong East (518 units)

NameEst. Completion Date3-room4-room5-roomEst. total
Teban ViewQ4 2015185333518

10. Kallang / Whampoa (1,970 units)

NameEst. Completion Date3-room4-room5-roomEst. total
Bendemeer LightQ4 2016212412624
McNair TowersQ4 2016115476591
Tenteram PeakQ4 2016319436755

11. Punggol (5,206 units)

NameEst. Completion Date3-room4-room5-roomEst. total
Waterway TerracesQ1 20151785883061,072
Punggol TopazQ2 20151845422841,010
Waterway Terraces IIQ2 2015118440246804
Waterway WoodcressQ1 2015100350244694
Waterway BrooksQ3 20156914651,156
Matilda PorticoQ2 2016251219470

12. Sembawang (372 units)

NameEst. Completion Date3-room4-room5-roomEst. total
EastBank @ CanberraQ4 2016193179372

13. Sengkang (6,618)

NameEst. Completion Date3-room4-room5-roomEst. total
Fernvale RivergroveQ3 20154848922521,628
Fernvale LeaQ3 20151006003501,050
Compassvale BoardwalkQ4 2015252222474
Compassvale MastQ2 2016104465359928
Rivervale DeltaQ2 2016102425357884
Compassvale CapeQ4 20161965884401,194
Compassvale HelmQ4 2016253207460

14. Tampines (804 units)

NameEst. Completion Date3-room4-room5-roomEst. total
Tampines GreenLaceQ1 2016215165380
Tampines GreenForestQ2 2016160264424

15. Toa Payoh (248)

NameEst. Completion Date3-room4-room5-roomEst. total
Joo Seng GreenQ1 2016102146248

16. Woodlands (747 units)

NameEst. Completion Date3-room4-room5-roomEst. total
Woodlands PeakQ3 20159595
TreeTrail @ WoodlandsQ2 2016418234652

17. Yishun (2,584 units)

NameEst. Completion Date3-room4-room5-roomEst. total
Acacia BreezeQ1 2015108418308834
Oleander Breeze @ YishunQ3 2016160348180688
Vine Grove @ YishunQ4 2016192324516
Palm Breeze @ YishunQ4 201696274176546

All in, we estimate that the bulk of new flats entering the resale market (in 2020 and 2021) will be in Sengkang, Choa Chu Kang, Punggol.

As expected, it’s the non-mature areas that are seeing the bulk of five-year-old flats. This could see a bigger influx into these areas if buyers decide that age is a bigger factor than a built-up estate.

About Sengkang

Sengkang is often underrated in terms of amenities. This is mostly a holdover from the early 2000s when it was one of the more underdeveloped estates.

Today, Sengkang has three malls – Rivervale Plaza, Rivervale Mall, Compass One Shopping Centre, and its own MRT / LRT station; it also benefits from the increased development of the neighbouring Punggol area.

Sengkang’s distinguishing feature is youth – it’s so closely associated with younger families, it was even credited with affecting the last general election.

The abundance of new resale flats in this area is likely to compound the effect: younger Singaporeans are more inclined to seek out these five-year-old flats, as they have more need of a longer remaining lease.

20201123 sengkangprices 99.co
PHOTO: 99.co

As of the time of writing, prices in Sengkang average $429 psf in 2020. This is ever so slightly higher than the average of $427 psf, for all HDB towns island-wide.

About Choa Chu Kang

The reason for Choa Chu Kang seeing such a big number of new resale flats is just a matter of odds. This estate consists of seven sub-zones, from Choa Chu Kang Central to Yew Tee and Teck Whye; this is one of the biggest HDB estates, hence a large number of flats.

Choa Chu Kang still has a ways to go in building up its amenities though; despite its large size, there’s only Lot One and Junction 10 in terms of major retail.

20201123 choachukangprices 99.co
PHOTO: 99.co

Prices in CCK have been on the up from 2019, averaging $350 psf in 2020 (perhaps it’s even the effect of more five-year-old resale flats we’re seeing). This is far below the Singapore-wide average of $427 psf.

About Punggol

Punggol used to be one of the most inaccessible places in Singapore; so many Singaporeans were shocked to realise the extent of the transformation when Piermont Grand (Executive Condominium) launched in 2019.

An EC launching at around $1,107 psf, in supposedly “cheap” Punggol, has since changed perceptions of the area.

Punggol Waterway and Coney Island now make up unique draws, which rival Bukit Timah in terms of outdoor amenities. Punggol is, in fact, Singapore’s first designated eco-town, with Punggol Waterway and Tree Trail @ Punggol being the first “sustainable waterfront towns”.

The prospect of waterfront living might also draw buyers to the newly HDB MOP flats in the area.

This is all down to the fruition of the Punggol 21 Plus plan, which dates back to 2007.

The five-year-old flats here are in a sweet spot: they have a long lease ahead of them, and they were built just as the best parts of waterfront living came about (sadly the older resale flats here had to suffer through more years of limited amenities).

20201123 punggolprices 99.co
PHOTO: 99.co

Flat prices in Punggol average $465 psf in 2020, higher than the island-wide average of $427 psf. As we said, those who still think of Punggol as “ulu budget housing” should revisit the area.

Are you thinking of upgrading to a condo from your flat at some point? The best stepping stone may be a five-year-old resale flat.

If you buy a BTO flat, you’ll need to wait three to five years for its completion, before your HDB MOP countdown starts. But buy a resale flat, and you only have five years to wait – you could be upgraded much sooner (or renting out the entire unit much sooner, if you need the added income).

This article was first published in Stackedhomes.

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