HDB vs Private Condo- Which is Better for You?
HDB vs Private Condo
📌 HDB Flat Pros and Cons
HDB flat is an ideal home for owner occupation? It has functional design with little wasted spaces. And most importantly, the prices of HDB flats are more affordable than private condo.
However, a resale or older HDB flat is not ideal for long term capital preservation or appreciation. Why? The government’s policy on public housing is that it is strictly for the buyer’s own occupation and not speculation.
In 2017, Mr. Lawrence Wong warned that not all old HDB flats will be eligible for SERS (Selective En bloc Redevelopment Scheme) or “en bloc” in short. The percentage of HDB en bloc is only about 4%.
Strictly by statistics, you really should not count on your HDB flat being shortlisted for this scheme. Almost 80% of Singaporeans live in HDB flats. The government could never possibly afford to let all old HDB flats be eligible for SERS.
This is why HDB owners are worried that their old flats will be a depreciating asset. Once the age of any 99 years leasehold property, regardless HDB or condo crosses 40 years, its value depreciates faster. There will limits on CPF usage and also the amount that you could loan when buying an old leasehold property. Age affects all property prices.
📌 HDB vs Private Condo: Enbloc Potential
The key difference between a private condo & HDB flat is that the private property can be put on a collective sale (en bloc) for developers to purchase. The developer can then buy this private condo for redevelopment.
Then again, nothing is guaranteed. There is a recent case of the government taking back the land of a private residence is Geylang Lorong 3 after its 60 years lease expired.
Overall, we can still safely say that a private condo has a much higher chance than HDB to en-bloc. In conclusion, go for condo instead of HDB, if you want to go for max capital preservation and appreciation.
Like this Article or Video?
Check out more insights for First-Time Buyer
Looking to buy
Should I buy a BTO or a condominium for my first property? The answer varies from buyer to buyer. Factors to consider include your income and your priorities. Schedule an interest-free consultation with the experts from Property Den!
Connect With Us
A must-read for first time couple buyers or HDB upgraders who have decided to buy their first condo. Review these 4 commonly overlooked factors before buyingRead More
Many buyers face many questions regarding income and loan requirements when buying their first condo. This article will help you understand them in simple termsRead More
Buying a property as a single Singaporean is tough in Singapore, let alone single Permanent Resident buying first property. Checkout all 3 FAQ by PRRead More
"Dennis came with strong recommendations from a dear friend. He helped me with the purchase of my first property. He was very patient and never once tried to hard sell me to buy a property. Dennis is a trustworthy and knowledgeable professional who I highly recommend with confidence to everyone I know!"
"Dennis was very helpful and has guided us throughout on the process. He managed to get good number of clients for viewing of our unit. He is very responsive and always readily available when needed. He has excellent negotiation skills as well when required for the deal"