While some HDB estates are seeing moderating prices in 2023, one fact remains unshaken: for homeowners seeking a long-term stay in an HDB property and finding the wait for a BTO untenable, targeting flats that have just reached their Minimum Occupation Period (MOP) is still the most viable move.

Why recent MOP Flats are the golden middle ground in 2023

With market dynamics being influenced by various factors, from high interest rates to skyrocketing private home prices, the appeal of resale flats, especially those fresh out of their MOP, is evident. These properties offer the best of both worlds: they're relatively newer than most resale flats and come without the uncertain waiting period of BTOs.

One realtor said that:

"Although not all buyers are eligible for the HDB Concessionary Loan, some may still be. HDB loan rates are only 2.6 per cent, whereas bank home loans are expected to reach five per cent by end of the year, or early next year.

So if you combine this with higher prices in the private market, it's not surprising that some upgraders switch to bigger flats instead of private condos."

In addition, the realtor noted that HDB rental rates have managed to keep increasing, despite a dip in private property rentals (the last report of this was in May this year). This is motivation for some Singaporeans to quickly buy a resale flat, rather than pay high rental rates while waiting for a BTO flat.

Another realtor opined that it's too early for HDB's ramped-up flat production to have an effect, as these flats will reach their MOP sometime in 2027 and 2028. For flats previously delayed by Covid, most are expected sometime in 2025.

The same realtor concludes that:

"I expect the same pace of rising prices for resale flats, until at least the end of the year; and I won't be surprised if prices continue rising right through 2024."

HDB flats reaching MOP in 2023/24

1. Alkaff Lakeview

Just a few days ago, we had a conversation with a reader who said that, all things considered, she wishes she had this HDB instead of buying at Woodleigh Residences.

It's not because there's anything wrong with Woodleigh Residences; it's just that Alkaff Lakeview has many of the same locational benefits, but at a lower cost and without condo maintenance fees (if you don't find a need for condo facilities).

(Not like many people had that choice though, as it was very unlikely to win when balloting for Bidadari)

Alkaff Lakeview is roughly a four-minute walk to Woodleigh MRT (NEL), which is connected to Woodleigh Mall and Woodleigh Residences (this is an integrated, private project). The mall provides the most needed amenities, including a wide range of restaurants, a pharmacy, and a FairPrice Finest. It's been hugely popular since launch, and also one of the reasons for grief from the residents as it has caused car park congestion.

Another important point to note: Woodleigh is one train stop from Serangoon MRT (NEL and CCL), as well as NEX Megamall. This effectively means access to two train lines and two major retail hubs.

Besides this, you do have a supermarket, several eating places, shops, and a childcare centre right downstairs anyways.

Maris Stella High (790 metres) and Cedar Girls' Secondary (310 metres) are also within walking distance, which will appeal to families.

Overall, this project is one of the most accessible and convenient on this list; and we expect few people will be willing to surrender their units. Even if they do, we'd expect very high Cash Over Valuation (COV).

2. Bukit Gombak Vista

This is a prime choice for buyers who like greenery views. Bukit Gombak Visa overlooks Bukit Batok Hillside Park, and is roughly seven minute's drive to Bukit Batok Nature Park. We're told that if you cycle, the time to travel is almost the same. You can also get to Little Guilin Lake really easily, and is one of the places in Singapore that looks nothing like most of Singapore.

Even though there's no large mall nearby (something some resident's may actually prefer), there are plenty of coffee shops, minimarts, clinics, and other heartland malls in the immediate surroundings. There's a Prime supermarket and Tay Hock Choon supermarket practically next to this project, so it's just a quick trip downstairs.

For public transport, the Bukit Gombak MRT station (NSL) is just on the other side of the neighbouring Block 372 - cut across the block and you'll be there in a jiffy. From here it's one stop to Choa Chu Kang, and just two stops to Jurong East (where you can connect with the EWL).

All in, a rare combination of a peaceful and green location, with easy amenities and good public transport access.

3. City Vue @ Henderson

City Vue @ Henderson has quite an iconic look about it, and amazing views to boot, with the top few floors enjoying views of the Southern Waterfront, and even the Singapore Flyer and CBD. As such, it has also commanded high prices with a seller on the 41st floor selling for $1.4 million in May 2022 (but as we mentioned, you don't have that many alternatives).

For those wondering why this is still on a list of MOP units in 2023 when there are already transactions, this is because those who came from the SERS exercise would only have to fulfil their 5-year MOP from the date of purchase or TOP, whichever is earlier. Since the "purchase" occurred before TOP, some of these residents have already fulfilled their 5-year MOP.

In terms of MRT stations, City Vue is almost equidistant from Redhill (EWL) and Tiong Bahru (EWL). It is a decent walk to either one, possibly 7 (to Redhill) to 11 minutes, but the added benefit here is that it is a fully sheltered walk (depending on which block you stay).

The area around Henderson Road is itself very built up. Right across from this block is the Bukit Merah View Market and Hawker Centre, which can meet most daily needs. It's also about a nine-minute walk to Tiong Bahru Park, which has a playground for children, as well as providing a green break from this somewhat densely built-up area.

Honestly though, we think the main draw for this one is going to be its proximity to Singapore's trendiest and most hipster neighbourhood as well as its central location to the CBD.

4. Dawson Vista

Right off the bat, this is in Queenstown, so it's not going to be cheap. That said, this is a five-year old flat in a super-mature neighbourhood, which is an instant draw for most buyers.

Dawson Vista is within walking distance of Queenstown MRT, perhaps seven to eight minutes on foot. The most appealing of which is that it is sheltered all the way to MRT station, but it's not the most straightforward route (you have to cut through the older blocks). It's also next to Dawson Place, an HDB-run mall that provides most daily amenities, including a 24-hour NTUC.

Besides, you do have food options below (Thai), a childcare centre, a mini-mart and the opposite HDB Skyville @ Dawson provides other amenities such as a 24-hour Sheng Siong, a food court, a bakery, 2 clinics including a dental clinic) and a bubble tea shop. There's also a 7 Eleven at SkyParc@Dawson, just 2-3 minutes away by foot.

IKEA Alexandra and Anchorpoint invariably come up, when discussing this area; unfortunately, they're a bit far on foot, and you could be walking close to 15+ minutes; so it's better if you cycle or take the bus. They are in the general vicinity though.

It is also situated next to the Alexandra Canal Park Connector, which provides a nice place to walk or exercise in the early mornings or evenings after work.

If you like Queenstown, but are put off by the generally advanced lease decay of the flats there, give Dawson Vista a look.

5. Jurong East Vista

This is for buyers who are looking at long-term growth. Come 2027, Toh Guan MRT (JRL) will be operational. This station will be just across the road from Jurong East Vista, and will connect to Jurong East MRT (EWL, NSL, JSL) in just one stop.

This grants quick access to a major retail hub, as Jurong East MRT is where you'll find malls like JEM, the upcoming J'Den, and Westgate. Jurong East Vista will provide access to this area, without the drawback of traffic and crowds that come from living in the actual hotspot.

You do also have a lot to look forward to in the area, as additionally, there's the expansive 6.8-hectare White site, which amalgamates three plots of land. This site bridges the Jurong East MRT interchange station with the upcoming Jurong Lake District station on the Cross Island Line.

With this development, the area will benefit from approximately 1.615 million sq. ft. of office space, a provision for 1,760 residential units, and an expansive 75,000 sqm GFA designated for retail, hospital, or community use. In essence, this points to further value appreciation, and heightened rental demand for the vicinity.

Even without using the MRT, the surrounding blocks offer the usual mix of HDB enclave amenities, like coffee shops, hair salons, minimarts, etc.

For those who want to get in early, and wait for further upside via the new MRT station and Jurong Lake District/Jurong Innovation District projects, this development will be one to consider.

Just be aware that, until Toh Guan station is ready, you'll need the bus to get to Jurong East MRT; unless you find a 15-minute walk to be a doable one. The development also only has 63 three-room flats for sale, so this is likely not an option for families too.

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This article was first published in Stackedhomes.