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31 May 2019  (1097 Views) 
Housing Development Board

Difficult to sell a HDB flat more than 40 years old

Miss X has a HDB flat in Telok Blangah. In Dec 2017, She bought another HDB flat in Chua Chu Kang as it was near to her workplace. She wanted to avoid the long travelling time of 1.5 hours each way to get to work and back. It could take longer if there is a MRT breakdown.

HDB gave her 6 months to sell her first HDB flat. 

She engaged several agents to sell the flats at the then market valuation price of $322,000 (In Dec 2017). The property agent told her that the market price had dropped as her flat had passed the 40 year mark. Later, the market became worse after the minister announced that HDB flat will have no value at the end of 99 year lease. 

Miss X could not sell her Telok Blangah flat within 6 months. She wrote to her MP and to HDB for assistance and extension of time. They did not reply to her. But they did not press her to sell the flat.

Miss X continued to look for a buyer. She was able to get a buyer willing to pay $292,000. She submitted the application for a transfer to HDB. HDB gave a lower valuation of $275,000 for the flat. The buyer opted out of the purchase, requested refund of the deposit that had been mutually agreed prior to the sales, due to Buyer worry of the high COV. 

During this period, she had used several property agents. One had advised her to market at a much lower price of $280,000 to $290,000 for the flat in Jun 2018 but Miss X did not engaged his service. 

The agent managed to convince some nearby neighbours to let him market below $250,000 !). At that price, she would have suffered a loss of about $30,000 which was too costly for her. 

She was disappointed that the property agents only wanted to close the sale and get their commission. They did not care that the owner would be suffering a large loss.

Tan Kin Lian

Vote - the owner of an old HDB flat has to take a big loss to sell the flat.

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