Your search results

Buy a $1M Resale HDB or a $1M Resale Condo?

Posted by Jayson Ang on August 19, 2023

| 0

TLDR

When comparing a million-dollar HDB flat to a private property of the same value, the HDB flat offers more living space, making it suitable for families. Condos, on the other hand, provide exclusive amenities but come with higher maintenance fees. HDB buyers can access grants and loans not available for private property purchases. While private properties offer higher rental demand and potential appreciation, HDB flats may be a better choice for long-term residence. Consider your priorities, consult a professional, and be aware of regulations when making a decision between HDB and private properties in Singapore.

As we witness an increase in million-dollar transactions for HDB flats in central regions like Queenstown or particular projects like Pinnacle@Duxton, the distinction between HDB flats and private properties is becoming less apparent.

Nevertheless, it prompts us to ask whether purchasing a condominium would be a more favorable option, despite such occurrences being atypical in Singapore’s property market.

$1 million HDB vs $1 million Private Property

Enjoy A Larger Living Space with HDB flats

HDB flats offer a larger living area compared to condos, especially when considering properties with similar prices.

For instance, a million-dollar HDB flat and a million-dollar condo located within six minutes of each other on foot and having similar remaining lease have been compared in the table above.

Here, the resale flat is found to be twice the size of the condo, providing more space for families with children.

However, a 1-bedder condo unit may be suitable for singles, newlyweds, or expats who do not require much living space.

Nonetheless, finding a condo of similar size will require looking further from the city, which means giving up a premium location.

2-Bedroom Condo in West Bay Condo

The condo unit is smaller than the HDB flat located at 53 Strathmore Ave, and has aged more compared to the recently completed 5-year required occupancy period of the resale flat.

Given the choice between an older condo with amenities in a less exclusive neighborhood or a newer HDB flat in a prime location with a greater range of lifestyle amenities, the HDB flat may still be preferable despite its high cost.

Condos Have More Amenities

As previously mentioned, residing in a condominium may offer you fewer living spaces or a location further away from the city.

However, the advantage lies in the range of exclusive amenities accessible to you within the premises, such as swimming pools, fitness centers, tennis courts, clubhouses, gardens, and playgrounds.

These facilities tend to be an immediate attraction for potential homebuyers who aspire to preserve a particular standard of living.

Additionally, families with young children can benefit from having a playground just a few floors below their unit within a secured, gated community.

Are The Condo Maintenance Fees Worth It?

The fancy amenities in condos come with a higher maintenance fee of $200-300 compared to the HDB’s service and conservancy charges that range from $20 to $100 per month.

HDBs also have government redevelopment programs like the Neighbourhood Renewal Programme that revamp the whole estate at a subsidised or no cost.

If you don’t plan to use condo facilities often or won’t use all of them, it’s better to invest in a bigger space.

Besides, most HDB estates are well-developed and have shopping malls, playgrounds, fitness areas, sports courts, and food centres that are similar to what condos offer.

In fact, mature estates where most million-dollar flats are located offer more options to choose from.

HDB Buyers Have Access To A Variety Of Grants And Loans

HDB flats have an advantage over private properties because buyers can use CPF grants to finance their purchase. The most popular grants are the Enhanced CPF Housing Grant (EHG) and the Proximity Housing Grant (PHG).

However, not everyone will be eligible for these grants.

Unfortunately, foreigners cannot buy HDB flats or receive CPF grants. Private properties are their only option.

There Is Higher Rental Demand And Capital Appreciation For Condos

When it comes to owning property in Singapore, there are pros and cons to both HDB flats and private properties.

Private property owners have the advantage of being able to rent or sell their property without waiting for a 5-year Minimum Occupation Period (MOP) like HDB flat owners.

Private property owners only need to wait for three years before selling to avoid paying the Seller’s Stamp Duty (SSD).

Private properties also have a higher potential for appreciation in value, but if you’re looking for a forever home and don’t plan on selling, an HDB flat may be the better option, even if it costs $1 million.

Ultimately, you must ask yourself what you’re willing to give up and what your non-negotiables are.

If you’re a family, a million-dollar HDB flat may be a better choice for the space and mature location, while singles may prefer a condo with amenities and location.

It’s best to speak with a professional before making any big decisions.

If you plan to move from a condo to an HDB flat, you’ll need to wait 15 months after selling your condo to buy an HDB resale flat, unless you’re a senior aged 55 or above buying a 4-room flat or smaller.

And if you plan to buy a second residential property, you’ll have to pay higher Additional Buyer’s Stamp Duty (ABSD) rates, which are 20% for the second property and 30% for the third or subsequent properties for Singaporeans.

Should You Buy, Sell or Wait?

If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?

It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.

I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.

I can help you by:

Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.

You May Also Like …

All Blog Posts Buying Tips

Uncover the Secrets of Buying Older Properties – What They Won’t Tell You!

Jayson Ang – December 30, 2022 –

TLDR When considering the appeal of older properties in hipster neighborhoods in Singapore, it's crucial to understand the benefits and...

All Opinion

Snag a Sentosa Condo for 40% Off? Should You Consider It!

Jayson Ang – May 23, 2024 –

TLDR The Residences at W Singapore Sentosa Cove has slashed prices by over 40%, but there are important details to...

Mandarin Top 5

5 Tips : How To Spot A Good Investment Opportunity In Singapore’s Property Market

Jayson Ang – July 18, 2024 –

Singapore's property market offers a plethora of investment opportunities for both local and foreign investors. To spot a good investment...

Mandarin Top 5

Top 5 Tips for First-Time Chinese Buyers Looking to Invest in Singapore Today

Jayson Ang – May 31, 2023 –

Top 5 Tips for First-Time Chinese Buyers Looking to Invest in Singapore Today Here are the top 5 tips for...

All Buying Tips Opinion

HDB Owners Missing Out on the “Ultimate Upgrade” to Landed Living

Jayson Ang – October 3, 2024 –

TLDR Over the past two decades in Singapore, the trend of HDB residents upgrading to landed properties has fluctuated. While...

All Blog Posts Buying Tips

Which Is Better For You: A 99-Year Leasehold Or Freehold Property Tenure?

Jayson Ang – March 25, 2023 –

TLDR When it comes to the choice between leasehold and freehold properties in Singapore, several factors must be considered. Leasehold...

All Buying Tips

What Are The Key Factors That Contribute To Property Valuations And Why Are They So Crucial?

Jayson Ang – October 23, 2023 –

TLDR Understanding property valuations is crucial for both buyers and sellers in the real estate market. Property valuations involve two...

All Buying Tips Opinion

5 Techniques for Identifying Undervalued Properties in Singapore 2023

Jayson Ang – August 23, 2023 –

TLDR To spot undervalued properties in Singapore's real estate market, focus on market value, location, and unique features. Consider "up...

All Blog Posts Buying Tips

Should I Buy In A Newly MOP HDB Or An Older Resale HDB?

Jayson Ang – March 18, 2023 –

TLDR When deciding between a recently MOP-ed HDB property and an older resale HDB property in Singapore, various factors come...

All Blog Posts Buying Tips

Singapore Decoupling Guide

Jayson Ang – December 29, 2022 –

TLDR Decoupling in Singapore's real estate refers to the process of separating property ownership to avoid Additional Buyer's Stamp Duty...

Mandarin Top 5

Top 5 Fine Dining Restaurants in Singapore if You are Visiting Us!

Jayson Ang – June 2, 2023 –

Top 5 Fine Dining Restaurants in Singapore if You are Visiting Us! Singapore is known for its diverse and delicious...

Buying Tips Mandarin Top 5

Singapore Luxury Property: 5 Reasons to Add it to Your Trophy Collection

Jayson Ang – July 4, 2023 –

Singapore Luxury Property: 5 Reasons to Add it to Your Trophy Collection When it comes to luxury property investments, Singapore...

All Buying Tips Opinion

Unlock the Secrets of Property Investment and Transform Your Financial Future!

Jayson Ang – September 30, 2024 –

TLDR The Singapore property market has experienced fluctuations, impacting private home prices. Understanding your financial capacity is crucial when considering...

All Buying Tips Opinion Selling Tips

The Importance of Caution Regarding Property Oversupply in Singapore

Jayson Ang – March 10, 2025 –

TLDR Recent challenges in China's real estate sector reveal valuable lessons for Singaporeans, emphasizing the importance of understanding governmental interventions...