PropNex unveiled a new platform called the HDB Auction at a press event held at HDB Hub earlier today.
This will be the first time HDB flats can be bought and sold via an auction system, which was previously reserved for private and commercial properties.
New HDB Auction is an industry first
This release will be an industry-first service according to Propnex. The new HDB Auction will provide home buyers and sellers an alternative platform to market public housing units.
According to the PropNex press release, HDB Auction “permits the buying and selling of HDB flats in open public tender, where interested parties can offer and sell to the highest bidder, subject to the reserve price being met.”
Successful bidders will still have to comply with the HDB policies and procedures.
Key points about HDB Auction are:
- A more transparent way to arrive at a final price (particularly in cases where trust and communications are lacking, such as during a divorce)
- Ability to reach optimal price within a shorter time frame
- Ability to provide greater publicity for the property- possibly allowing for a future sale in private treaty
- Successful bidders only put down the usual $1,000 deposit to secure the Option to Purchase (OTP). They will still have the usual 21 days to exercise the OTP
HDB Auction will require buyers and sellers to register their intent to sell or buy as per usual practice. Buyers and sellers are also subject to the usual restrictions, such as ethnic quotas, Minimum Occupancy Periods (MOP), and others.
Based on HDB statistics, there are over one million HDB owners in Singapore, and 22,000 and 23,000 resale transactions in 2017 and 2018. In addition, PropNex estimates there will be a total of 30,000 HDB flats that would have fulfilled the MOP in 2019, compared to an average of 10,000 units in the last 10 years; this is expected to cause a supply-side increase in the HDB resale market.
PropNex claims to have over 40 per cent market share in public housing today and that this HDB Auction will offer a value added service for their large client base.
“With the launch of this pioneering service, our Auction team will be expanding its list of auction properties to now include the HDB segment. With the team’s wealth of knowledge in the field and the bench strength of the management team, we strongly believe that we are able to help clients unlock value from their property transactions” says Ismail Gafoor, Executive Chairman and CEO of PropNex Limited.
PropNex’s inaugural HDB Auction will be on 5th April 2019, 2.30 pm, at the PropNex office on Level 10, HDB Hub East Wing.
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