7 Essential Tips for Finding Your Perfect Retirement Home
TLDR Searching for a forever home should balance heart and practicality. Avoid homes with stairs, high cabinets, big kitchens, and...
Read More
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 …
3 Exciting Residential Sites Coming Soon!
TLDR The Lion City is undergoing rejuvenation with upcoming developments in coveted areas like Clementi and sites near MRT stations....
Read More
Bayshore: Reinventing the Experience of Living by the Beach
TLDR When deciding on buying or selling property in Bayshore, consider the recent developments and potential future growth. With a...
Read More
Don’t Get Scammed: The Top 5 Red Flags To Watch Out For In Singapore’s Property Market
Don't Get Scammed: The Top 5 Red Flags To Watch Out For In Singapore's Property Market When it comes to...
Read More
I Bought a Mega-Home : Hear 7 Homeowners Spill their Heartfelt Remorse
TLDR The article discusses various challenges faced by residents living in massive condo complexes in Singapore. From long elevator wait...
Read More
Top 5 : Places to See Singapore’s Skyline at Night
Singapore, a bustling metropolis known for its stunning skyline, offers an array of vantage points to witness the city's architectural...
Read More
Great Reasons for Condo Owners to Sell upon Reaching TOP – A Guide to Sub-Sale Transactions
TLDR A recent sub-sale transaction in Midtown Modern set a new record with a 2-bedroom home selling at $3,150 psf....
Read More
Singapore’s Property Insights : Where to Find 5 Hidden Gems?
Singapore's Property Insights : Where to Find 5 Hidden Gems? With its booming economy, vibrant culture and attractive regulations, Singapore...
Read More
The Top 5 Features to Look for When Buying a Luxury Property in Singapore – Expert Insights!
Singapore, a thriving financial hub and one of the world's wealthiest nations, has become an attractive destination for luxury property...
Read More
5 Key Insights to Take Away from the Latest 2022 Cooling Measures
TLDR Affordability of HDB Market: Government is focused on ensuring affordable public housing and may increase supply if needed. Long-term...
Read More
Unpacking Property Ownership: Joint Tenancy vs. Tenancy-in-Common
TLDR When a property has multiple owners, the choice of ownership type is crucial to determine how shares are distributed...
Read More
3 Property Owners Reveal Their Major Mistakes: The Pitfalls of Ill-timed Home Sales
TLDR When it comes to navigating the ups and downs of the Singapore property market, timing is crucial. Three real-life...
Read More
5 Reasons : Why Investing In Singapore Property Is The Best Decision I Ever Made
Investing in property is a great way to build wealth and secure a stable source of passive income. When it...
Read More
Singapore’s Best Kept Real Estate Secrets: 5 Insider Tips for Savvy Investors
Singapore's Best Kept Real Estate Secrets: 5 Insider Tips for Savvy Investors Here are 5 insider tips for those looking...
Read More
The 5 Most Popular Types of Properties to Buy in Singapore
The 5 Most Popular Types of Properties to Buy in Singapore 1. Condominiums: Condos are popular among buyers because they...
Read More
Singapore Sights & Sounds: 5 Must-Know Facts From the Little Red Dot
Singapore, affectionately known as the Little Red Dot, is a vibrant city-state in Southeast Asia that boasts a unique blend...
Read More
5 Reasons : Why Investing In Singapore’s Property Market Can Be A Good Retirement Plan
Investing in Singapore's property market can be a good retirement plan for several reasons. Here are five key factors that...
Read More
Apply Your HDB HFE Letter in 5 Easy Steps: A Simplified Guide for 2023
TLDR The HDB Flat Eligibility (HFE) letter has experienced delays since its introduction alongside the HDB Flat Portal in May...
Read More
The Hidden Hurdles of Purchasing a BTO Flat in Singapore: Unveiling 4 Lesser-Known Challenges During the 5-Year MOP
TLDR When contemplating the purchase or sale of a property under the Minimum Occupancy Period (MOP), it's crucial to consider...
Read More
Top 5 Tips : How to Choose the Best Property Agent in Singapore – Insider Tips and Strategies!
Choosing the right property agent in Singapore can be a daunting task, especially with the plethora of options available. A...
Read More
