PropNex agent Shafik Yusope said he had helped clients sell their condos after they signalled plans to use the extra cash to pay for an HDB flat.
The proceeds come in, and they will want to purchase an HDB flat, he said.
They can't buy with this cooling measure. They are very anxious, saying where am I going to stay? I have already committed to my sale, but now I need to buy. He predicts challenges with this, because these owners will most likely have to rent an HDB unit during the wait-out period.
He said that the rental market is very difficult, meaning that demand is higher than supply.
It's going to get hotter because these people have to rent after downgrading. It's going to be a tough time for them to look for a house. The data from 99. co and SRX showed that rental prices rose by 1.7 per cent in July, for the 19th consecutive month, while HDB rental prices went up 1.5 per cent, the 25th consecutive increase.
Before the cooling measures were announced, Mr Shafik received 50 enquiries in the first hour of advertising a super basic HDB flat in Yishun for rent. They have quite healthy proceeds because of the downgrades of these condo sellers. They have the ability to rent, financially, he said.
It's a different question, whether they can get a house for them to rent for at least 15 months. PropNex agent Daron Ang said he has three clients under 55 years old who wanted to capitalize on the currently attractive condo prices by selling their home and buying an HDB flat.
According to the data released by the Urban Redevelopment Authority in July, the prices of non-landed private properties increased by 3.6 per cent in the second quarter, compared to a 0.3 per cent decrease in the first quarter.
They were just annoyed because they were looking forward to cashing out and holding onto more cash, Mr Ang said.
They have to shelve their plans for at least 15 months.