If your HDB sale falls through after you've purchased the new condo, you face two immediate problems: (1) S$300,000 in upfront ABSD becomes potentially forfeited if you can't sell another buyer within the 6-month window, and (2) you may face a temporary cash crunch covering both properties. Immediate action: relist with realistic pricing, accept lower offers if needed, or use bridging finance to defer the deadline.
Recovery steps when HDB sale falls through
- Calculate remaining time: How many weeks until the 6-month ABSD refund deadline?
- Reprice the HDB: Drop the asking price by 3-5% to attract genuine buyers quickly.
- Engage a second agent: Broader marketing reach, more buyer pool access.
- Consider HDB rental (if MOP completed): Generate cash flow while market clears.
- Bridging loan to extend: If you have 8+ weeks remaining, secure bridging to cover the gap.
If forfeiture is unavoidable
S$300,000 ABSD forfeiture is the worst-case outcome. The math comparison:
| Option | Net cost |
|---|---|
| Accept S$300k forfeiture; keep both properties | −S$300,000 + rental income |
| Drop HDB price by S$50k to clear | −S$50,000 (sale price reduction) |
| Drop HDB price by S$80k to ensure sale | −S$80,000 |
| Hold HDB; rent out post-MOP | + S$30k/yr rental but −S$300k ABSD |
A S$50-80k price drop almost always beats S$300k forfeiture, but only if you have remaining time. The math reverses if the deadline is days away.
Prevention is best — pre-screening
- Verify buyer's financing strength before accepting OTP
- Require fully-exercised OTP within 14 days (not extensions)
- Confirm buyer's HFE letter validity
- Have a backup buyer / agent network
See complete upgrade framework.
FAQ
Can I extend the 6-month ABSD window?
No. IRAS does not grant extensions.
Can I sell the new condo instead?
SSD applies — selling within 4 years incurs 16%/12%/8%/4% SSD. May still be better than S$300k forfeiture.
What if buyer fallthrough is bank-related?
Bank approval delays are common. Tighten OTP terms to require buyer's IPA upfront.