The HDB Resale Flat Listing (RFL) service has just been launched. With HDB’s new Resale Flat Listing (RFL) service, HDB flat owners will soon have the additional option to list and market their flats for sale independently on the HDB Flat Portal or appoint their property agent to do so on their behalf.
Advantages:
1. Improved listing authentication and market integrity
By introducing an online resale platform that employs stringent measures to govern and monitor listings, users can benefit from a more secure, safer and transparent online buying experience, which is paramount in today's digital age. Currently, there are many online platforms with a plethora of listings, which can overwhelm users and impede their ability to differentiate and identify authentic listings. Some listings could be erroneous, repetitive or show unrealistic prices, which can distort market expectations and cause frustration among users. Hence, it is essential to regulate and monitor these listings closely.
Operated by the authorities with stringent checks, the new resale flat listing service instils confidence in online transactions. It is expected to enhance market transparency as all listings will be closely monitored. To use the platform, flat sellers must have a valid Intent to Sell, and buyers must have a valid HFE letter. This ensures that the platform filters out buyers and sellers who have no real intention to transact, providing a more efficient and trustworthy service for all parties involved. The authorities will also be able to react more quickly to any dubious listings.
2. Stabilise market and price dynamics
The new listing platform may prevent price manipulation and manage price hikes. The new system allows each seller to post only one flat listing. In contrast, other online platforms may display multiple listings of the same unit with varying prices or marketed by different agents. This can create a false perception that the area is in high demand and many units are up for sale in the same location, leading to inflated prices if buyers believe they have chosen the lowest-priced unit among several listings.
Moreover, the system also prompts sellers if their listing price exceeds the highest transacted price of nearby units of the same flat type in the past 6 months by 10% or more. The careful monitoring and flagging of unrealistic pricing can ensure that asking prices align more closely to price trends or valuations in the vicinity, thus reducing sudden price spikes in specified locations.
3. Improved transaction efficiencies with a more seamless user experience
Consumers can reap the benefits of technology to streamline the buying and selling process, resulting in a faster transaction period. By incorporating machine learning, the need for manual labour and paperwork can be reduced, making it easier and faster to close deals. This approach also supports environmental sustainability by minimizing the need for excessive manpower.
Potential drawbacks:
1. Some may lack the knowledge or confidence to use the online system
Buying and selling a property is not merely an administrative process, especially since it involves a significant amount of money. Along with using a reliable platform, buyers and sellers must understand other sales aspects to ensure a successful transaction, which includes sales negotiation, awareness of buying and selling regulations, avoiding sales pitfalls, and arranging viewings.
Therefore, buyers who are comfortable with technology and online transactions and/or have some relevant market or sales knowledge/experience may find the new online system useful. The older generation, who are not as familiar with technology, or consumers who lack confidence and knowledge in managing property sales, may still prefer to have a sales agent or broker to advise them on the process, help them with the application and ensure that their properties are priced correctly.
2. Some prefer to keep their identity confidential or do not want the hassle of handling the deals themselves
Not everyone wants to deal with sales matters on their own. Some may also require assistance in the paperwork and documentation. Moreover, some individuals may prefer to maintain their anonymity and keep their contact information private, preferring to have agents to act as intermediaries in such cases.