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.

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