When we’re planning to buy an HDB flat as our first home, one of the things we consider is its resale prospects, especially if we’re planning to upgrade to a bigger flat or a private property.
Yes, yes, we know HDB flats should be homes first and investment assets second, etc. But let’s be honest: everyone wants to know what the big pay-off could be, besides shelter from the elements. If you plan to sell your property after the minimum occupation period (MOP), you’d also be interested to find out which HDB flat type will make more profit.
But before that, let’s go through a little refresher:
Understanding market trends and demographics
When considering the purchase of an HDB flat, it’s crucial to understand the broader market trends and demographic shifts in Singapore. Trends such as urban redevelopment, upcoming infrastructure projects, and changing population dynamics can significantly influence the long-term appreciation potential of HDB flats.
For instance, flats in areas slated for future development or near upcoming MRT stations may see a higher appreciation rate. This additional layer of analysis can provide potential buyers with a more nuanced understanding of the factors that drive property appreciation, beyond just the flat type and size.
The role of renovation and upkeep in property values
Another aspect to consider when evaluating the potential appreciation of HDB flats is the impact of renovation and upkeep. Well-maintained flats with quality renovations can fetch a higher resale price, irrespective of their size. This is because buyers often value the immediate livability and aesthetic appeal of a property.
Understanding the balance between investing in renovations and the expected return in terms of increased property value can be a critical factor for homeowners planning to sell their flats after the MOP. This information can guide homeowners in making informed decisions about renovations and maintenance to maximize their property’s resale value.
Now that we’re refreshed, let’s a look at the numbers:
3-room vs 4-room vs 5-room HDB flat: Which flat type appreciates better over time?
To find some answers, we looked at price movements of 3-room, 4-room, and 5-room HDB flats over 15 years. Here’s what we found.
In terms of average price, 4-room flats have the highest price appreciation at 80.75%. Average prices have increased from S$316,306 in 2008 to S$571,721 in January 2023.
3-room flats have a price appreciation of 73.41% over the past 15 years. A 3-room resale flat is currently around S$409,855, up from around S$236,344 in 2008.
Interestingly, 5-room flats have the lowest price appreciation at 70.51%. The average price currently stands at S$669,630 up from S$392,716 in 2008.
Let’s now look at how the average prices psf have risen in the past 15 years across the three flat types.
3-room flats have a price increase of 73.6%, increasing from S$323 psf to S$557 psf from 2008 to January 2023.
Meanwhile, 4-room flats have seen the highest price appreciation in terms of price psf at 82.95%, with the average price psf currently at S$561 psf, up from S$307 in 2008.
Out of the three HDB flat types, 5-room flats have the lowest price psf increase at 70.68%, from S$310 psf in 2008 to S$528 psf in January 2023.
It’s also interesting to note that the average price psf of 4-room HDBs in 2008 was lower than that of 3-room and 5-room HDBs. However, in January 2023, the average price psf of 4-room HDBs is the highest.
As such, we can see that the price appreciation of 4-room HDB flats is the highest in terms of average quantum and average psf prices.
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We’ve also rounded up the HDB median resale prices from 2007 to 2022 to see how much they have appreciated across the different HDB towns.
If you want to gain some profit from selling your flat in future but are undecided which HDB town you should go for, this might give you some idea.
Change in HDB Median Resale Prices from 2007 to 2022 by HDB town (3-room)
| HDB Town | 3-room (Q4 2007) | 3-room (Q4 2022) | % Change |
| ANG MO KIO | $203,000 | $378,000 | 86.21% |
| BEDOK | $193,000 | $360,000 | 86.53% |
| BISHAN | $205,000 (Q2 2022) | $432,500 (Q2 2022) | 110.98% |
| BUKIT BATOK | $183,000 | $360,000 | 96.72% |
| BUKIT MERAH | $230,000 | $400,000 | 73.91% |
| BUKIT PANJANG | $178,000 | $375,000 | 110.67% |
| BUKIT TIMAH | * | * | |
| CENTRAL | $300,000 | $450,000 | 50.00% |
| CHOA CHU KANG | $169,800 | $389,500 | 129.39% |
| CLEMENTI | $210,000 | $378,000 | 80.00% |
| GEYLANG | $185,000 | $335,000 | 81.08% |
| HOUGANG | $184,000 | $380,000 | 106.52% |
| JURONG EAST | $190,800 | $360,000 | 88.68% |
| JURONG WEST | $170,000 | $358,000 | 110.59% |
| KALLANG/WHAMPOA | $212,000 | $380,000 | 79.25% |
| MARINE PARADE | $290,000 | $430,000 | 48.28% |
| PASIR RIS | * | * | |
| PUNGGOL | * | $451,000 | |
| QUEENSTOWN | $220,000 | $390,000 | 77.27% |
| SEMBAWANG | * | $432,500 | |
| SENGKANG | * | $443,400 | |
| SERANGOON | $220,000 | $386,500 | 75.68% |
| TAMPINES | $222,000 | $410,000 | 84.68% |
| TOA PAYOH | $215,000 | $340,000 | 58.14% |
| WOODLANDS | $161,300 | $395,000 | 144.89% |
| YISHUN | $178,000 | $372,000 | 108.99% |
Source: HDB
- Asterisks (” * “) refer to cases where there are less than 20 resale transactions in the quarter for the particular town and flat type.
In terms of 3-room HDB flats, average prices in Woodlands had the highest appreciation of 144.89% from S$161,300 to S$395,000. This is followed by Choa Chu Kang with 129.39% and Bishan at 110.98%.
Average prices in Marine Parade saw the lowest appreciation of 48.28%.
Change in HDB Median Resale Prices from 2007 to 2022 by HDB town (4-room)
| HDB Town | 4-room (Q4 2007) | 4-room (Q4 2022) | % Change |
| ANG MO KIO | $307,000 | $555,000 | 80.78% |
| BEDOK | $257,000 | $480,000 | 86.77% |
| BISHAN | $340,500 | $669,400 | 96.59% |
| BUKIT BATOK | $305,000 | $514,000 | 68.52% |
| BUKIT MERAH | $428,000 | $775,400 | 81.17% |
| BUKIT PANJANG | $249,000 | $480,000 | 92.77% |
| BUKIT TIMAH | * | * | |
| CENTRAL | * | * | |
| CHOA CHU KANG | $253,000 | $500,000 | 97.63% |
| CLEMENTI | $335,000 | $574,900 | 71.61% |
| GEYLANG | $271,500 | $576,500 | 112.34% |
| HOUGANG | $263,000 | $518,000 | 96.96% |
| JURONG EAST | $267,000 | $465,000 | 74.16% |
| JURONG WEST | $242,000 | $481,500 | 98.97% |
| KALLANG/WHAMPOA | $353,000 | $788,000 | 123.23% |
| MARINE PARADE | $360,000 | * | |
| PASIR RIS | $275,500 | $520,000 | 88.75% |
| PUNGGOL | $293,000 | $575,900 | 96.55% |
| QUEENSTOWN | $425,000 | $870,000 | 104.71% |
| SEMBAWANG | $257,500 | $535,000 | 107.77% |
| SENGKANG | $281,000 | $548,000 | 95.02% |
| SERANGOON | $275,500 | $539,000 | 95.64% |
| TAMPINES | $293,000 | $536,500 | 83.11% |
| TOA PAYOH | $335,000 | $780,000 | 132.84% |
| WOODLANDS | $248,000 | $495,000 | 99.60% |
| YISHUN | $218,000 | $474,000 | 117.43% |
Source: HDB
- Asterisks (” * “) refer to cases where there are less than 20 resale transactions in the quarter for the particular town and flat type.
As for 4-room HDB flats, average prices in Toa Payoh saw the highest appreciation rate at 132.84%, from S$335,000 to S$780,000. This is followed by Kallang/Whampoa at 123.23% and Yishun at 117.43%.
Bukit Batok had the lowest appreciation rate of 68.52%.
Change in HDB Median Resale Prices from 2007 to 2022 by HDB town (5-room)
| HDB Town | 5-room (Q4 2007) | 5-room
(Q4 2022) |
% Change |
| ANG MO KIO | $423,000 | $868,000 | 105.20% |
| BEDOK | $400,000 | $650,000 | 62.50% |
| BISHAN | $480,000 | $877,500 | 82.81% |
| BUKIT BATOK | $430,000 | $700,000 | 62.79% |
| BUKIT MERAH | $573,000 | $899,000 | 56.89% |
| BUKIT PANJANG | $319,000 | $590,000 | 84.95% |
| BUKIT TIMAH | * | * | |
| CENTRAL | * | * | |
| CHOA CHU KANG | $313,000 | $588,000 | 87.86% |
| CLEMENTI | $484,500 | * | |
| GEYLANG | * | $781,500 | |
| HOUGANG | $349,000 | $627,500 | 79.80% |
| JURONG EAST | $390,000 | $643,000 | 64.87% |
| JURONG WEST | $315,000 | $566,000 | 79.68% |
| KALLANG/WHAMPOA | $461,500 | $800,000 | 73.35% |
| MARINE PARADE | * | * | |
| PASIR RIS | $340,500 | $641,000 | 88.25% |
| PUNGGOL | $358,000 | $700,000 | 95.53% |
| QUEENSTOWN | $591,000 | * | |
| SEMBAWANG | $308,000 | $579,000 | 87.99% |
| SENGKANG | $334,000 | $580,000 | 73.65% |
| SERANGOON | $350,000 | * | |
| TAMPINES | $350,000 | $652,500 | 86.43% |
| TOA PAYOH | $525,000 | $865,000 | 64.76% |
| WOODLANDS | $300,000 | $580,000 | 93.33% |
| YISHUN | $300,000 | $620,000 | 106.67% |
Source: HDB
- Asterisks (” * “) refer to cases where there are less than 20 resale transactions in the quarter for the particular town and flat type.
For 5-room HDB flats, average prices in Yishun had the highest appreciation rate of 106.67%, from $300,000 to $620,000. Ang Mo Kio had the second-highest appreciation rate of 105.2% followed by Punggol at 95.53%.
Bukit Merah had the lowest appreciation rate of 56.89%.
If you’re viewing your first flat as an investment, it may make sense to buy smaller
Many Singaporeans aspire towards a 5-room HDB flat as their first property purchase. This is often driven by the impression that 5-room flats have the best resale prospects. This could be thanks to news reports of million-dollar flats, which tend to be the larger ones.
But Pinnacle@Duxton, DBSS flats, rare maisonettes or jumbo flats should not be considered in the same category as the typical 5-room flat. In fact, some investors refuse to even think of these as “real” HDB flats, due to deep fundamental differences.
We can also see, from the numbers, that smaller flats tend to appreciate better. In terms of gain, 3-room and 4-room flats mostly beat their 5-room counterparts across the island (although the gains between 3-room and 4-room flats are pretty narrow overall).
This suggests that, if your first flat is meant to be just a stepping stone, you might want to consider a smaller unit. Apart from a shot at better gains, you also face a lower initial cash outlay.
Lower capital outlay for the first home
Let’s say you plan to buy an HDB BTO flat for your first home.
A 5-room BTO flat in Yishun launched in the November 2022 BTO would cost you an estimated* S$414,500. Meanwhile, a 4-room BTO flat in the same estate would cost you an estimated* S$292,000, which would be around S$120,000 cheaper. A smaller 3-room BTO flat would be even more affordable at an estimated* S$202,000.
*Prices are based on HDB’s indicative price guide
| 3-room BTO flat in Yishun | 4-room BTO flat in Yishun | 5-room BTO flat in Yishun | |
| Price guide (from HDB) | $175,000 – $229,000 | $248,000 – $336,000 | $366,000 – $463,000 |
| Median price | S$202,000 | S$292,000 | S$414,500 |
| Loan amount (80% if taking HDB loan) | S$161,000 | S$233,600 | S$331,600 |
| Min. downpayment | S$41,000 | S$58,400 | S$82,900 |
| Estimated monthly instalment (2.6% interest rate for a 25-year tenure) | S$730.41 | S$1,059.77 | S$1,504.37 |
| Difference in monthly instalments compared to buying a 5-room flat | S$773.96 | S$444.60 | – |
By getting a smaller flat, you get to save at least around S$400 in monthly instalments, which you can set aside for other uses. For instance, you may use it to invest in a well-diversified portfolio.
If you decide to upgrade to a private property in future, you’ll have extra funds from the investments for the purchase, on top of the sale proceeds.
Less money spent on renovation and furnishings
Getting a smaller unit also means that you’ll spend less on renovation, given the smaller square footage to work on.
Here’s the estimated renovation cost, according to Qanvast:
| BTO flat type | Expected median renovation cost | Difference in renovation cost compared to buying a 5-room flat |
| 3-room | S$35,000 – S$38,000 | S$12,000 – S$18,000 |
| 4-room | S$40,000 – S$46,000 | S$7,000 – S$10,000 |
| 5-room | S$47,000 – S$56,000 | – |
And with less space to play around and store things, it helps you to look at what you really need to buy and what you don’t need, helping you save money.
Saw that cute hammock on Taobao, but there’s no space to put it? It’s a sign that you don’t need it.
What’s more, you could use the money saved for the next house, if you decide to upgrade in future.
Tip: Get a 3-room BTO flat to increase your chances of getting a queue number
If you die die want to get a BTO flat, one way to increase your chances is to ballot for the less popular flat type, which is the 3-room unit.
Because most people want a bigger space, the 4-room and 5-room flats tend to be the most contested.
Just look at the application rate for the November 2022 BTO exercise. Among the three flat types, 3-room flats generally have the lowest application rate, which means it’s easier to secure a queue number.
For instance, around 0.9 first-timer applicants were competing for each of the 3-room flats in Bukit Batok, as opposed to 1.8 first-timers for each 4-room flat, and 2.2 first-timers for each 5-room flat.
Likewise, in Kallang/Whampoa, the first-timer application rate is 3.1 for 3-room flats, which is less competitive than the 7.1 application rate for 4-room flats.
Nevertheless, buying a smaller flat isn’t for everyone
At the same time, going small, especially a 3-room flat, isn’t for everyone. It’s only ideal if you’re a child-free couple, or have one kid.
With a 3-room flat, for instance, if it’s just the two of you, you can have the master bedroom for the both of you, and the spare bedroom for your workspace, home gym, man-cave or a walk-in wardrobe. And if you have a kid, the other bedroom can be for them instead.
But you can never predict what’s going to happen in future.
Maybe before the five-year MOP ends, you have another kid or your parents decide to move in with you. A smaller home may be too small and squeezy for the expanded family, but there’s a few more years to go before you can buy a bigger home.
Regardless of the size of the home you’re going for, it’s important to consider your needs, how long you plan to live in the house and any lifestyle changes in the near future.
[Additional reporting by Virginia Tanggono and Faruq Senin]
Planning to sell your house but not sure where to start? Let us help you connect with a property agent.
If you found this article helpful, 99.co recommends Do you REALLY need a five-room HDB flat? and HDB grants for couples – Quick guide (with infographic) to BTO and resale HDB grants for couples.
About Ryan Ong
Looking to sell your property?
Whether your HDB apartment is reaching the end of its Minimum Occupation Period (MOP) or your condo has crossed its Seller Stamp Duty (SSD) window, it is always good to know how much you can potentially gain if you were to list and sell your property. Not only that, you’ll also need to know whether your gains would allow you to right-size to the dream home in the neighbourhood you and your family have been eyeing.
One easy way is to send us a request for a credible and trusted property consultant to reach out to you.
Alternatively, you can jump onto 99.co’s Property Value Tool to get an estimate for free.
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