{"id":55792,"date":"2022-07-13T12:17:33","date_gmt":"2022-07-13T04:17:33","guid":{"rendered":"https:\/\/www.99.co\/singapore\/insider\/?p=55792"},"modified":"2022-07-13T17:12:15","modified_gmt":"2022-07-13T09:12:15","slug":"new-sers-replacement-flats-less-than-5-years-old-mop-soon","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/new-sers-replacement-flats-less-than-5-years-old-mop-soon\/","title":{"rendered":"New HDB SERS flats less than 5 years old (i.e. near MOP) that have or will hit the resale market soon"},"content":{"rendered":"
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When people want to get a new HDB flat, they usually take the HDB BTO<\/a> route. Or they might turn to Sale of Balance Flats (SBF)<\/a> or open booking<\/a>. On the other hand, these sales exercises are very competitive, so it\u2019s tough to get a queue number.<\/p>\n

One option is to go for a BTO flat that has finished its five-year Minimum Occupation Period (MOP)<\/a>. Since the flat is only five years old, it\u2019s still considered new and in good condition.<\/p>\n

Another option, which is less talked about, is to get a SERS<\/a> replacement unit that has reached its MOP. Because by the time the unit has finished its MOP, it\u2019s only around two to three years old.<\/p>\n

SERS replacement units start their MOP earlier\u2026<\/strong><\/h2>\n

When the news about the S$1.4 million resale transaction<\/a> for the SERS replacement flat first came out, many people (including this writer) were confused on why it had entered the resale market so early. Its lease had only started in 2019, thus making the unit only three years old when it was resold.<\/p>\n

The reason why the owners could sell it that early was because unlike the typical BTO flats, the MOP for these replacement units would start earlier.<\/p>\n

One of the benefits that homeowners affected by SERS have is an option to buy a replacement unit at a designated site. For those who chose a unit at these sites, the MOP would be either of the following, whichever is earlier<\/p>\n

    \n
  • 7 years from the date of selection of the replacement flat, or<\/li>\n
  • 5 years from the date of key collection<\/li>\n<\/ul>\n

    So for these owners, they basically get a headstart in their MOP. Assuming the replacement site takes five years to build, they can just live in the unit for two years before selling it in the open market.<\/p>\n

    This is one of the reasons why people say getting SERS is like winning the lottery. Because owners get to sell their flat even earlier than BTO flat owners, they can price it higher due to the longer lease and younger age of the flat.<\/p>\n

    \u2026 but not for the replacement units for SERS announced from 7 April 2022 onwards<\/strong><\/h2>\n

    Last month, 99.co found out from HDB\u2019s website that HDB has changed the MOP criteria for those buying a replacement flat through SERS<\/a>.<\/p>\n

    \"MOP
    Source: HDB<\/figcaption><\/figure>\n

    For SERS projects announced from 7 April 2022 onwards, the MOP will be five years starting from the key collection date. This is similar to the typical BTO flat.<\/p>\n

    7 April 2022 is also when HDB announced the Ang Mo Kio SERS<\/a>.<\/p>\n

    With this change, owners of these SERS replacement flats can no longer sell their flats earlier. Just like the typical BTO flats, these flats would only enter the resale market five years after they\u2019re completed.<\/p>\n

    Nevertheless, there are still a few SERS replacement projects with the MOP starting from the flat selection date. This means flats from these projects can enter the resale market around two years after they hit their Temporary Occupation Period (TOP)<\/a>.<\/p>\n

    If you\u2019re looking for a new HDB flat in the resale market, here are the projects you might want to focus on. We\u2019re narrowing down to those less than five years old, with the TOP date no earlier than 2018.<\/p>\n

    SERS replacement flats that are hitting the resale market<\/strong><\/h2>\n

    1. City Vue @ Henderson<\/strong><\/h3>\n

    TOP:<\/strong> 2018
    \nFlat types in the project:<\/strong> 2-room, 3-room, 4-room, 5-room<\/p>\n

    First on our list is the City Vue @ Henderson<\/a> project, which serves as the replacement site for the Redhill Close SERS. Interestingly, the site of City Vue used to be occupied by two blocks that were later announced for SERS back in 2007.<\/p>\n

    \"City
    Image credit: Surbana Jurong<\/figcaption><\/figure>\n

    With the project completed in 2018 and the lease starting in 2019, it\u2019s only around four years old. And given the earlier start in MOP, the project has started clocking in resale transactions since November last year. It has even recorded million-dollar sales \u2013 the most notable, as of writing, being the S$1.4 million record transaction<\/a>.<\/p>\n