The question of high Cash Above Valuation comes back into play. Its the perennial paradox – Buyers want to buy low, and Sellers want to sell high. And very often Sellers do get to sell high – this is evidenced by the high Cash Above Valuation in the mature towns – witnessed by the $1million dollar flats sold in Queenstown, Shunfu HDB estates. Unbelievable as it may sound, many are calling for new regulations to regulate this by getting HDB Flats to be sold back to HDB. When that happens, HDB only purchases the flat at valuation and no Cash above value will be considered. So regardless how much renovation you have put in, high floor or mid floor, the difference in valuation will not be significant.
To implement this could cause a huge upheaval or discontent, affecting a large portion of upgraders who are have bought new launched Executive Condos or mass market condo projects launched in 2010 till now. While waiting for their new homes to be completed, these upgraders will continue to stay in their HDB Flats, having this whammy dealt – SELL BACK TO HDB, would seriously impact them financially and i think the repercussions are huge.
Secondly, retirees that sell off their HDB flats (often in popular prime areas of mature towns), will stand to lose out in additional retirement funds probably needed for medical bills or healthcare.
Thirdly, the downgraders, those that are already in financial distress, I do not need to elaborate further, the picture should be quite clear.
I think that if you have issues about paying the Cash Above Valuation, there are many options available – honestly, you can choose to purchase a flat further away from the City Center and from the Town Center – on a lower floor, you can still find COV of about $15K approximately. Or you can choose to get a Build-to-Order HDB Flat.
Hence I hope that the authorities abandon the idea of “Sell HDB Flats back to HDB”.