Have you heard? More people are starting to like 3Gen Homes and uptake of such homes are growing in numbers.
What is 3Gen homes?
3Gen flats are so-called the homes catered for multi-generational living. The government loves the idea of families staying together in one big family. It also seen as a good choice for local couples who want to live together with their old folks. These 3Gen apartments come in sizes that are bigger than the average, they are usually 115 square metre and above. Singaporeans can only apply for a 3Gen home together with they parents in the application.
These 3Gen HDB flats usually cost about $300,000 to $600,000 depending on how good the location of the flat is. Importantly, 3Gen flats have an additional restriction to the regular HDB flat and that is they can only be sold to other multi-generation living once the owners have completed the usual Minimum Occupancy Period (MOP). To add on, these homes also cannot be rented out in terms of room rental until the Minimum Occupation Period (MOP) has ended.
In the beginning, many had doubt the take up rate of these apartments back in 2013. No one had ever thought they would be popular because of the resale restrictions. Even the government did not seem impressed after it put such homes out in the market. Said former Minister Khaw Boon Wan – “I doubt it is a huge demand, so we will try it out and if it works … If it doesn’t, it doesn’t matter”
Recent sales of these homes
Things have completely changed today, more than 650 units of such apartments were booked since the release of these units in recent developments such as Saraca Breeze @ Yishun, Punggol BayView, and Tampines Green Ridges. Many of the new executive condominiums are also featuring this. Check out Sol Acres Executive Condo.
This unexpected response is puzzling and at the same time have revealed how several of traditional school of thought on Singaporean home buyers may in fact be wrong.
Many of such home buyers mentioned that the need to take care of their aging parents is at their utmost priority. For a handful, the cost of running to and from their folks’ apartment flat as well as the upkeep of the place makes it alot more economical, in terms of time and money, to simply live with their parents.
Today, there have been a number of HDB flats are bought for over a million dollars. Many say that these people bought at such prices because they see their flats as their retirement income; it’s certainly a common strategy to downsize the flat to fund retirement. For some, Buyers of these flats may not even bother about resale gains, so it doesn’t matter that they can only resell to other multigenerational families (they may never want to resell).