I just learned of a new "trick".
Some
HDB upgraders are selling their flats now and renting a place to stay, in anticipation of a correction in condo prices.
Since
HDB resale prices are at a record high, they sell to lock in the high cash over valuation (COV), collecting a tidy sum in cash. Their
CPF accounts also get refunded with what they owe
CPF (i.e. how much they have withdrawn + interest they could've earned, blah). And some of them may even get extra cash if there is remaining from the sales proceed after repaying
CPF.
Condo prices on the other hand have been on the decline, but recently saw an upswing due to over-eager speculators.
What is not clear is whether condo prices can sustain this recovery. So the abovementioned upgraders are betting that the prices may correct after some time, especially post-hungry ghost season or when the IR opens with lacklustre visitor arrivals (like HK disneyland did when they opened).
So they rent a place to stay for the moment.
Once the condo prices fall to an acceptable level, these upgraders will buy and move in to their swanky new abodes.
Who says
HDB dwellers are not savvy?
I also started a thread to talk about the crazy
HDB record prices:
https://forums.salary.sg/investments-...ly-2009-a.html