4 Reasons to Pick a Condo Over an HDB
8 December, 2023 by
4 Reasons to Pick a Condo Over an HDB
Mindlink Groups Pte Ltd, Admin

Moving from an HDB flat to a condo after the Minimum Occupation Period (MOP) is a common trend in Singapore. The appeal of private properties, with their luxurious amenities like tennis courts and lap pools, is understandable. However, it's crucial to consider the market dynamics.


Private residential prices have shown an upward trend in recent years, even amidst the pandemic, with forecasts suggesting a potential 1-4% increase this year, as reported by CNBC. The question arises: Are private properties still a sound investment?


It's a nuanced decision, dependent on individual financial goals and market insights. While the allure of upscale living is enticing, prospective buyers must carefully weigh the investment against prevailing market conditions and their long-term objectives before making the leap from an HDB flat to a condo.



  1. You and your children can live in a condo for eternity.


Condos, the Forever Homes: Unlike HDB flats with a 99-year lease, condos often boast freehold leases, allowing indefinite ownership. A game-changer if passing it down to your kids is on the horizon. Even if not, no lease worries mean no rush to find a buyer. Condo values tend to climb steadily, especially in prime locations, making them a lasting investment. In contrast, HDB values drop yearly, hitting zero at the lease end. Condos offer a different story – a timeless home sweet home.



  1. Perfect for if you don’t want to get married


For the under-35 and not-ready-to-marry crowd, condos are the way to go. A no-brainer, right? But, of course, only if your budget aligns with the rising property prices.


Here's the deal: HDB flats are a no-go unless you hit 35 or tie the knot. That leaves you with condos and private properties. The eligibility criteria for condos are simpler – citizenship, age, family nucleus, Ethnic Integration Policy, SPR quota, and such. It's a more straightforward path into the property game for the young, unmarried bunch



  1. Investment perks with condos


Even with fewer rooms, condos command higher rents than HDB flats. A one-room condo can fetch similar rent to a three-room HDB flat, and here's why.


Condos carry prestige and often sit conveniently near MRT stations, schools, bus stops, and malls. Prime locations and extra facilities contribute to the allure, translating to higher rental yields. The current rental market trend, particularly driven by young adults and couples seeking independent living, further supports this.


Renting out a condo not only covers the higher maintenance fees compared to HDB flats but also provides a financial advantage. In contrast, HDB flats can only rent out rooms, and only after completing the Minimum Occupation Period (MOP). Condos shine as lucrative investments in the current rental landscape.



  1. Condos Have Prime Locations

Unlike resale HDB flats, new condo developments are strategically situated near essential amenities. This becomes particularly beneficial for those relying on public transport for daily commuting. With most condos positioned conveniently close to work and other commitments, residents without cars can enjoy faster and more efficient daily commutes in Singapore



Before diving into condo ownership, run through this checklist:


Family Planning:

Do you have children?

Are you planning to pass your home to them?

Consider space needs as they grow.

Check proximity to schools and essential amenities.


Long-Term Plans:

What's the duration of your intended stay in your new house?

Is it for investment, rental, or permanent residence?

Different goals may require different property choices.

Be aware of Seller's Stamp Duty for quick reselling within the first three years.


Pet Considerations:

Do you own a pet not allowed in HDB flats?

Some breeds and types may find condos more pet-friendly.

Consider HDB restrictions on certain breeds and only one dog.


Financial Realities:

Assess what you can realistically afford.

Bank loans may require a 5% cash outlay.

Consider condo maintenance costs (around $200-$300/month).

Delinquency in payments may lead to additional fees.

Whether it's an HDB or private property, align your decision with your lifestyle, future plans, and financial capacity. It's not just about a property; it's about making the right home for your needs.


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