Are you considering selling your private property and moving into an HDB? We have assisted homeowners in transitioning to their next stage of life.

Recent statistics show that over the last seven years, the average cost of HDBs and condos has increased by roughly three times. Condos are typically three times more expensive than HDBs when calculated on a price per square foot (PSF) basis. In other terms, a condo is around three times as expensive as an HDB but typically offers a third as much living area.

Situation 1

You can choose to buy an HDB and pay for it in full with CPF and cash.

Situation 2

You might purchase a condo in order to save money for a down payment, pay off the bank loan for a larger purchase, and wait for higher capital appreciation.

Condo or HDB?

Let’s perform the arithmetic to see what our fictitious million dollars would be able to purchase us. According to the 2022 rates, a condo would cost $1,579 and an HDB would cost $515 per square foot. An HDB would therefore be 1,941 square feet if you had a million dollars to spend, compared to 633 square feet for a condo. A spacious, full-sized HDB flat instead of a little 2-room condo is a noticeable contrast.

Do you often realise how an HDB flat and a 2-bedder condo can differ so much in size? A gigantic HDB flat can indeed be larger than a condo.

Anyone purchasing a property of this size must take this space into account carefully. The best thing for your family may be to have enough breathing room.

Do you require such a large home? Could you manage in a smaller place with your family?

A Less Expensive Residence Close to the CBD

You would be closer to the CBD if you moved from a condo to an HDB, which is another reason you might wish to do so. Given that they are typically more affordable per square foot (PSF) than condos, HDB flats provide good value for money. An HDB flat is preferable to a condo because of its better location. An HDB that is near the CBD is a fantastic choice if you want convenience and a shorter commute. Be aware that you can end up paying more each month for your mortgage, but it might be worthwhile in the long term.

Singaporeans love HDB apartments for many different reasons. Let’s discuss some examples in this section: When people think of the Outram and Tanjong Pagar neighbourhoods, 12 Cantonment Close and Pinnacle@Duxton are frequently the first HDBs that come to mind. This particular development, though, stands out and may have raised values in the neighbourhood. Convenience stores and supermarket stores are the subjects of continual speculation. Some predict that the growth of PLH flats, such as the Rochor project, will lead to further exceptions to the rule.

The average HDB space multiple is 3x, yet it is only 1.68x close to the CBD. It makes sense because people are more likely to use an HDB over a condo as prices rise as they approach closer to the metropolis. Because HDB is less expensive, consumers are therefore more inclined to pick it, according to the disparity effect.

Another thing to keep in mind is that HDBs closer to the city frequently has quicker growth rates. In comparison to The Beacon, 12 Cantonment Close’s value increased by 17% over the course of seven years. We are grateful for the development of food and convenience stores in the first half of the 20th century.

In comparison to other options in the city, HDB housing is cheaper. If you’re looking for a place to stay, this is an important consideration. With our fictitious million dollars, we may buy a condo measuring 691 square feet or an HDB measuring approximately 1164 square feet. The size of HDB flats and condos varies; a 3-room HDB is significantly larger than a 2-bedder condo. Numerous family- and budget-friendly activities are available in the city.

Greater Southern Waterfront will search for more accessible public housing in key locations. It will help a lot of people in the neighbourhood who are in need. Although the government’s intention to increase the number of HDBs is necessary, it would hurt the resale market. Ten-year leases will keep prices reasonable by reducing the number of transactions. When PLH flats go on the resale market, we’ll have to wait and see how this plays out.

Trying to eat your cake and drink it too might be difficult. Size and location typically trade-off; the closer you are to the CBD, the smaller your property becomes.

Saving Money Through Lifestyle Choices

The Work-From-Home (WFH) movement can have an impact on some of you. You might not be able to utilise all of your condominium’s amenities and services if you’re too busy juggling work and family obligations. Unfortunately, there are a lot of dual-income households, and we frequently hear from parents about how challenging it is to raise a child. You’re doing a fantastic job, so it’s worth it!

There are many lifestyle factors to take into account, and for some people, cutting costs is crucial. Changing your way of life is simple if the room is your idea of luxury! Consider upgrading to a larger HDB if you believe that luxury is all about having a lot of space. You may enhance your lifestyle and take advantage of your time in Singapore with greater living space. HDB apartments located near the CBD are frequently thought of as more opulent choices, however, they can be very expensive.

Save Money and Get More Space Condos don’t provide as much value for the money as HDBs do. The price per square foot for HDBs is more affordable. In addition, HDBs are more cost-effective than condos because you may increase your home’s size for less money. Additionally, HDBs provide enough space and privacy because they are frequently constructed with the family as their core. In a private apartment, each bedroom is typically more important. Simply put, the area is more noticeable overall.

Consider relocating to an HDB near the city centre if you’re looking for a more affordable option. While status symbols might be entertaining, if they prevent you from living the better lifestyle you desire, it may be time to reconsider your options.

Condos could offer some advantages, but they also have some disadvantages. For instance, they frequently include parking lots and swimming pools. Some people also have gyms, squash courts, tennis courts, and badminton courts on their property. You might find it helpful to have these facilities on-site if you use them frequently. You can avoid travelling and vying for access with the general public in this manner.

Another crucial aspect to take into account while deciding between public and private housing is privacy.

Before making a choice, be sure you know what you would be giving up. This question does not have a universally applicable solution. Your lifestyle and the type of your work will determine this. If you work from home, for instance, you might spend more time outdoors than someone who doesn’t.

The bottom line is that you won’t receive your money’s worth from maintenance fees if you don’t utilise or enjoy the condo amenities. Perhaps the lesson will benefit your kids, or a monthly trip to the spa will provide you with a well-earned respite. On the other side, a condo might not be the greatest choice if you need extra living space. An HDB may be less expensive and give you greater square footage.

Grown Children (literally)

Your children can require more personal space as they get older. It should not be interpreted personally because it is a natural evolution. Given that they are growing older, some children today might no longer wish to share a bedroom with their siblings. They might like more decorating and seclusion in their quarters. Additionally, having a little extra room for oneself occasionally might be wonderful. Some people might start looking for a bigger house so that their kids have more space to develop.

Coming home from work to see your kid squabbling might be difficult. Not a very reassuring look. However, it’s comforting to know that all members of the family value and enjoy their place in the house.

The Golden Years of Retirement

People frequently “downgrade” to an HDB after retiring in order to live more comfortably and lazily. We dislike assigning a status to this choice. The best years of life are supposed to be in retirement! By relocating to an HDB, you are improving, not downgrading. Retirement-related perks are provided by an HDB, making it a good decision. Living in an HDB has advantages, including access to government perks (GST Vouchers, etc.). BTOs also provide grants and subsidies to assist families in purchasing homes. Finding a BTO close to you may enhance the amount of financial aid your children receive if they apply for one.

A fantastic method to free up some money is to move up to an HDB. During your retirement years, you are free to do whatever you choose with this money. Cash is useful for a variety of things. For instance, some people may utilise it to cover the cost of their grandchildren’s college tuition. While others might wish to utilise it to subsidise their wedding costs and help them bless their children. When you release that capital, it’s critical to have a lot of cash on hand because it is always a desirable resource.

Now that’s something everyone can appreciate: an efficient space. The end result is more free time, whether it’s less labour for your robot vacuum cleaner or less time spent on chores by you. During their retirement years, some people may choose a smaller place that needs less upkeep. This can be a decent choice if you don’t think you’ll need or want a lot of space.

Does it make sense for you to upgrade from a Condo to an HDB?

Singaporeans are not keen on discussing their socioeconomic standing. We don’t want to be contrasted with other groups. People don’t appear to be as enthusiastic about upgrading as they once were. Instead of their lives getting better, they perceive it as relocating to a condo so they can drive.

Upgrading now refers to a change in your living situation rather than social advancement. Being content with your situation in life refers to being content and joyful. Being better than yesterday is vital for leading a successful life. You can do that by developing mentally, emotionally, and physically.

It is more than just the conventional notion of shifting from an HDB to a condo. Your decision may also entail making improvements to your current home or selecting a new one that better fits your investing style or lifestyle. There are always ways to improve your living position in whatever economic. We’ll go over five reasons why moving from a condo to an HDB makes sense if you’re looking to upgrade after these FAQs.

FAQs: Frequently Asked Questions

Q: How long does it take to sell a resale HDB apartment?

A: It typically takes four months to purchase an HDB resale apartment, though this can vary based on the neighbourhood and the status of the market. The Singapore Land Authority will auction off the unit at a reserve price set by HDB if it remains unsold after six months on the market.

Q: Why do condo owners shell out more money for maintenance than HDB owners?

A: For the upkeep of communal spaces and amenities like the pool and landscaping, condo owners must pay maintenance fees. In contrast, HDB tenants cover these expenses through a monthly maintenance fee. The remaining maintenance expenses are covered by government grants or loans, therefore HDB residents’ monthly maintenance payments are cheaper than those of condo residents.

Q: Is it worthwhile to move up to an HDB apartment from a condo?

A: This site is for you if you’re asking these questions! This article will explain why you might want to think about relocating to an HDB apartment. In general, HDB apartments are more resilient than private homes during economic downturns.

Q: The values of my private properties are being impacted by the new cooling measures. Will the value of my unit decrease too?

A: Your unique condo development will determine this. The declining property values may have an impact on some neighbourhoods, but not on others. Additionally, you shouldn’t anticipate a reduction in value as long as your condo is situated in a secure neighbourhood with quality amenities and easy access to transportation.

Q: Why should I move up to an HDB from a condo?

A: The property market has been negatively impacted by the cooling measures, particularly for individual condos. Many condo sellers are now attempting to reduce their properties as a result, and some have chosen to upgrade to HDB flats.

Q: Is it challenging to sell a condo and purchase HDB?

A: The good news is that condo sales have greatly increased since last year if you’re worried it may be tough to sell your unit. Private home transactions increased by 22% last year, and prices are predicted to remain stable this year. As a result, now is the ideal time to act quickly!

Q: Selling my home so I can move up to an HDB apartment is something I’m considering. But I can’t buy a new HDB apartment with the money from the sale. Is there a way for me to do that?

A: You might be qualified to obtain a bank loan through the CPF Housing Grant Scheme to cover the price difference between your property’s sale earnings and the cost of your new HDB apartment. However, the bank and HDB must both approve of this. Additionally, there are requirements for eligibility that must be met.

Q: The ideal time to sell my condo is when?

A: Whether you decide to sell your condo relies on your financial status, your personal situation, and whether you can find a new apartment that will satisfy the demands of your family. Selling your current home sooner can make sense if you want to buy a new apartment right away because you’ll have more money while you’re waiting for it.

Final Reflections

An impartial viewpoint on HDBs and condos is reflected in this article.

There are advantages to both kinds of homes that appeal to various people.

We like Singapore’s wide range of home possibilities. The advantages of HDBs for married couples in Singapore are covered in this article. HDBs are still an option for you even though it is assumed that you are married.

It may make sense for you to move from a condo to an HDB for a variety of reasons. For instance, you might want:

• More space for less money
• A less expensive neighbourhood close to the CBD
• To modify your lifestyle
• So much room for your young children at a reasonable price.
• Adjust the real estate holdings in your portfolio for retirement.