Ask an Agent: Answers to your property questions

How much CPF can you use to buy a resale flat, and can you still get a bank loan at 50? Meanwhile, if you already own a property, how do you decide whether to keep collecting rent or sell and move on?

For the sixth edition of Ask an Agent, we opened the floor to your property questions. This round covers buying and selling, investment and upgrading, as well as cash over valuation and what to consider before buying an older HDB flat.

Your questions were answered by Rayne Chua, Advisory Group Division Director at ERA (CEA: R058058B), who has been in real estate for around 10 years. 

Buying

SS asks: Where can I find cheaper housing in Yishun?

Yishun offers plenty of options if you are looking for a lower-priced home. If you do not mind living slightly further from MRT stations and amenities, you can consider 3-room and 4-room HDB flats in the older parts of the estate.

However, look beyond the price tag. Compare recent transactions, consider renovation costs and think about whether the home can meet your housing needs over the long term. A value buy is only a good buy if it serves your longer-term needs, so the purchase price should form just one part of your decision.

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Ganesh asks: I am single and would like to purchase a resale flat. How much CPF can I use, and do I need to pay cash?

If you are a Singapore Citizen aged 35 or above, you can purchase a resale HDB flat under the Single Singapore Citizen Scheme. How much cash you need will depend on your financing arrangements. You will need cash for the option deposit of up to S$5,000, while taking a bank loan requires a minimum cash downpayment of 5% of the purchase price.

Meanwhile, how much CPF you can use depends on the CPF housing limits and the flat’s remaining lease. Most importantly, obtain your HDB Flat Eligibility (HFE) letter first. This will give you clarity on what you are eligible for and help you decide whether to take a bank loan or an HDB loan.

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Brendies asks: I am 50 years old and wish to buy an HDB flat, either BTO or resale. Can I still get a bank loan?

Yes, you can still get a bank housing loan at 50. The loan tenure, however, affects how much financing you can receive.

If you take a loan that runs until you are 65, you may obtain a loan-to-value (LTV) limit of up to 75%. Alternatively, if you are comfortable with a higher downpayment, you can consider stretching the tenure with a lower LTV limit of 55%.

Before deciding, speak to a banker and obtain an in-principle approval. This will help you establish how much you can borrow so that you can make a more informed property decision.

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Eve asks: I am still waiting for my BTO, but my partner already owns one. Can we still buy a joint 4-room flat together?

This depends on the status of your BTO application and whether your partner’s existing flat has met its Minimum Occupation Period (MOP).

If your partner’s flat has met the MOP, you may be able to purchase a 4-room resale HDB flat together, subject to HDB’s eligibility requirements. However, you would need to sell your partner’s existing flat and would probably also need to cancel your BTO application.

Before taking the next step, check both ownership situations with HDB so that you understand what you can and cannot do.

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Anonymous asks: Where do I find foreclosed HDB flats listed for auction?

HDB foreclosures do not follow the same marketing process as private property foreclosures. Where owners face financial difficulties and HDB takes the flat back, you would not usually find it marketed on public property platforms as a foreclosure listing.

Rather than focusing on foreclosed flats, look across the HDB resale portal and property listing platforms such as 99.co for homes with more motivated sellers. This gives you a wider range of resale listings to consider, instead of limiting your search to HDB foreclosure opportunities that do not typically appear on public platforms.

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J asks: I am curious about buying near Tanjong Katong Primary School, as there are no new private launches nearby. How and where should I source properties?

If you mean upcoming launches that have yet to go on sale, there do not appear to be any coming up soon within 1km of Tanjong Katong Primary School. However, the area’s newer developments include Tembusu Grand, The Continuum and Emerald of Katong, which are understood to have already sold out.

To identify private properties within 1km or 2km of the school, start with the OneMap app or website and check the distance of each condominium from the school. After verifying the location, you can use 99.co to look for listings that suit your needs.

Nevertheless, living within 1km or 2km does not guarantee your child a place in the school. Therefore, look beyond school distance and consider whether the property offers long-term value and good potential when you eventually sell.

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Selling

Mrs Goh asks: I have a 2-bedroom unit at Bayshore Park on the 7th floor, measuring 986 sqft and currently rented at S$3,900. How much should I renew the contract for, and what is the selling price?

Based on recent rental transactions, a renewal range of around S$3,900 to S$4,100 per month would be a starting point. However, if your current tenant has been a good one, keeping the tenant at a competitive rate may be worthwhile rather than risking a vacancy.

For a sale, recent transactions suggest a range of around S$1.1 million to S$1.3 million. The price will still depend on your unit’s condition, facing and renovation. 

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Whether to sell also depends on your long-term investment goals and what you plan to do afterwards. Compare that next step with the benefits of continuing to hold the property, especially with the changes taking place around Bayshore.

If you have no urgent need to sell and can secure a good tenant, it may be worth weighing your net rental yield against the potential price uplift as new developments bring new pricing into the area.

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Anonymous asks: I bought a 1-bedroom apartment at Newport Residences, which is still under construction. When is the best time to sell?

There is no single best time to sell a particular property. The best time will depend on when you feel you have maximised your profits. 

Many buyers choose to sell a new launch property when it obtains its Temporary Occupation Permit (TOP), which is often a point when we see some price uplift. However, you should also consider your longer-term investment goals, including whether you would prefer to collect rental income and benefit from the rental yield.

As the development approaches TOP, review the property again. Consider whether the price and market conditions meet the capital appreciation goals or target you set when you bought the unit, then decide whether selling makes sense for you.

Ultimately, a good time for one owner to sell may not be a good time for another.

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A. Fern asks: If I am collecting keys to my new BTO in Q1 2027, when should I start sourcing an agent to sell my current flat? What commission do I pay, and what should I watch out for when engaging an agent?

A useful starting point is to begin selling your current property three to six months before collecting your BTO keys. This gives you time to plan the sale, coordinate the timeline and work out the funds you need.

HDB generally requires you to dispose of your existing flat within six months of collecting the keys to your new one, so keep that deadline in mind.

Your financial position will also affect the timing. If you do not need the sale proceeds to collect your BTO keys, you have more flexibility to collect the keys using your existing funds and consider selling afterwards. However, if you need those proceeds for your new flat, you will need to coordinate the timeline more closely.

As for commission, the usual market practice is around 2% plus GST. Your agent should help manage the sale and purchase process, particularly the timing of your move from the current flat to the new BTO.

When choosing an agent, look beyond who can achieve the highest selling price. You also need someone who can manage the timeline well, because the last thing you want is to leave your current flat before you are ready to move into the new one.

Alongside this, consider the agent’s marketing strategy, track record and credibility.

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Investment & upgrading

Mdm Lim asks: With a budget of S$1 million, what is the best property to buy for both capital appreciation and rental yield?

For an investment with a S$1 million budget, consider a property in a mature estate with good connectivity and nearby employment hubs. These factors can support rental demand over the long term.

Capital appreciation, meanwhile, depends heavily on your holding period. With the Seller’s Stamp Duty (SSD) framework now covering four years, a holding period of around four to six years would be a useful timeline to plan around if capital appreciation is your aim.

In today’s resale market, a S$1 million budget would likely mean considering 1-bedroom or 2-bedroom units, depending on whether you are buying in the Outside Central Region (OCR), Rest of Central Region (RCR) or Core Central Region (CCR). 

Most importantly, choose a location or property with strong transaction demand.

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Anonymous asks: Is The Myst a good buy?

The Myst has several attractive features. It is near Cashew MRT, comes from developer CDL and sits close to the Rail Corridor, which may appeal to buyers who enjoy nature.

At the time of this discussion, the development was understood to have recently obtained TOP, with only a few developer units remaining. If you are considering buying now, compare your entry price with what earlier buyers paid. You should also be clear about why you are buying: is the property for your own stay or for investment?

Beyond the development itself, look at surrounding resale properties with similar features. Study their transactions and the price gap between those homes and the unit you are considering at The Myst.

Finally, consider your holding period and long-term goals, including whether the property will meet your housing or investment needs over time.

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K C Ong asks: I own a unit at Cote d’Azur which I rent out, and I am currently renting an HDB flat in Marine Crescent for my children’s schooling. Should I move back, or sell the condo and buy an HDB flat in Marine Parade near the schools?

You have several options, so consider the decision from both a lifestyle and a wealth preservation perspective.

If renting in Marine Crescent meets your family’s needs, it may be worthwhile to maintain the current arrangement while continuing to collect rent from Cote d’Azur.

Alternatively, selling the condominium and buying an HDB flat in the area for your long-term stay could release funds for other investments. Whether that makes sense depends partly on what you would like to do with the money you unlock. The removal of the 15-month wait-out period also makes this option more accessible. Once you sell the condominium and give up ownership of the private property, you could potentially proceed with an HDB purchase without that wait, which could save you rent during the gap.

However, pay close attention to the HDB flat’s remaining lease. Marine Crescent is an older estate, so consider whether the flat can meet your housing needs over the next five, 10 or even 20 years before making the move.

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Pricing, valuation & older flats

Anonymous asks: What is the cash over valuation for a 5-room HDB flat five minutes from Queenstown MRT?

Cash over valuation, or COV, is the difference between the agreed purchase price and HDB’s valuation. There is no fixed COV for a particular location, even if the flat is near an MRT station or in a prime area. Instead, the amount depends on the specific unit and HDB’s valuation, taking recent transactions into account.

To get a sense of the potential COV, check recent transactions and use tools such as SRX X-Value to help benchmark the unit. 

You should also consider the unit’s renovation, condition and facing. If there is COV, ask yourself whether you need to pay it for that particular home or whether another unit might match HDB’s valuation more closely.

As COV requires cash, you will need to set aside additional funds for it.

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S asks: What do you think about buying an older HDB flat in Marine Drive? Is VERS likely, or is there a chance of an en bloc?

Marine Drive and the wider Marine Parade area form an attractive mature estate. With East Coast Park just opposite, the location offers a lifestyle that appeals to many buyers.

However, the Voluntary Early Redevelopment Scheme (VERS) is selective, applies to older precincts over 70 years old and is not guaranteed.

Therefore, approach the purchase from a different angle. Consider whether the flat has enough remaining lease to meet your housing needs, whether any restrictions affect your CPF use and how these factors affect the funds you need. These considerations matter more than hoping that VERS will happen. While redevelopment may be something buyers hope for, relying on that possibility can be risky and should not form the basis of your property decision.

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Stay tuned for the next Ask an Agent

Property decisions often come with plenty of questions. Through Ask an Agent, we connect your concerns with an experienced agent’s insights each month, helping you better understand your options before taking the next step. 

Across this round’s questions, a common thread runs through the answers – consider how each decision supports your needs over time. A lower purchase price, proximity to a school or the prospect of redevelopment should sit alongside other considerations, including affordability, the remaining lease and your plans for the property.

We’ll be back with another round of Ask an Agent, with more questions and advice on the housing matters that interest you.