Some flat owners sitting on a goldmine

Some flat owners sitting on a goldmine

Some lucky Housing Board home owners, whose flats are entering the resale market this year, are looking at more than double the price they paid for the units. Property analysts say such high asset appreciation, attributable to good timing and a buoyant resale market, is one that is unlikely to be repeated in a long time.

These flat owners, who had the keys handed to them in 2007, would have fulfilled the minimum occupancy period (MOP) of five years this year.

As the prices of new flats are pegged to market rates, albeit at a discount, another chance to cash out at such a significant premium is unlikely to happen any time soon.

The resale price index is likely to remain stagnant in the coming year, and any growth would be very small.

Meanwhile, astute real estate agents are tracking MOP dates to find out where to lobby residents to sell. ERA agent Chris Neo said the pickings were hottest in Strathmore Avenue two years ago and Redhill Road last year. 'Most flats that have their MOPs up this year are likely to make a profit. It's only a matter of how much.'

Source: The Straits Times – 26 May 2012