- Million-dollar HDB flat is gaining popularity over private condo in Singapore.
- HDB flats offer more space and lower costs compared to private condos.
- The trend raises questions about long-term effects on the private property market.
Singapore’s property market is seeing a shift as buyers choose a million-dollar HDB flat over a private condo.
Million-Dollar HDB Flats on the Rise
According to 99.co, more people in Singapore are buying million-dollar HDB resale flats instead of private condos.
In May 2024, a 5-room flat at Pinnacle @ Duxton sold for S$1.515 million.
Another unit in the same building sold for the same price just last week.
By September 2024, 750 million-dollar HDB flats were sold.
This is a big jump from the 469 units sold in all of 2023.
Why Choose HDB Over Condo?
HDB flats are becoming a popular choice for many reasons:
- More space for less money
- Good locations with nearby amenities
- Lower maintenance fees
- Potential for good resale value
For example, a 1-bedroom condo in the city centre costs about S$1.295 million for 581 sqft.
In contrast, larger HDB flats offer more space at a similar or lower price.
This makes HDB flats an attractive option for buyers looking for value for money.
Record-Breaking Sales
The HDB resale market has seen some impressive sales recently:
Location | Price | Details |
---|---|---|
SkyOasis@Dawson | S$1.725 million | 5-room, 1,195 sqft (Most expensive HDB resale flat) |
Kallang Trivista | S$1.33 million | Capital gain of about S$700,000 |
Toa Payoh Crest | S$1.33 million | Capital gain of about S$700,000 |
These high prices show that HDB flats can be a good investment.
As quoted by 99.co, “The resale value of Pinnacle@Duxton units demonstrates just how lucrative HDB resale flats can be.”
Lower Costs for HDB Owners
HDB flat owners pay less in monthly fees compared to condo owners.
They only need to pay Service and Conservancy Charges (S&CC).
These charges are much lower than the management fees for condos.
According to 99.co, “HDB homeowners are only responsible for Service and Conservancy Charges (S&CC), which are relatively affordable.”
Stable Loan Rates
HDB loan interest rates have been steady at 2.6% since July 1999.
This stability helps buyers plan their finances better.
Private property buyers face more changes in their loan rates.
Government Measures
The government has taken steps to cool the property market:
- Reduced Loan-to-Value limit for HDB loans from 80% to 75%
- This means buyers need to pay a larger down payment
- The aim is to prevent people from overspending on homes
Impact on Private Property Market
The trend of buying million-dollar HDB flats might affect the private property market.
More people choosing HDB flats could mean fewer buyers for private condos.
This could lead to changes in condo prices and demand in the future.
Convenience Factor
99.co highlights that “Convenience is another key factor that draws buyers to HDB flats.”
HDB towns are well-planned with many amenities nearby.
This makes daily life easier for residents.
Potential Risks
Buyers should be aware of some risks when investing in HDB flats:
- HDB flats have a 99-year lease
- The value might drop as the lease gets shorter
- The Selective En bloc Redevelopment Scheme (SERS) is not guaranteed
It’s important to consider these factors before making a purchase decision.
Future Outlook
The trend of million-dollar HDB flats is likely to continue.
However, buyers should carefully consider their options and financial situation.
The property market can change, and what seems like a good deal now might not be in the future.
Million-dollar HDB flats are changing Singapore’s property market.