Think You'll Be Rich From Selling Your HDB? Here's Why You're Wrong.

Earlier this year, a 5-room HDB flat in CityView@Boon Keng sold for a record-breaking S$1,205,000. It is the second unit in this development to fetch a resale price exceeding S$1 million. In the past, developments like Pinnacle at Duxton have also fetched attractive resale prices. With the media loving to swoon over these sales, you might think that selling your HDB will make you tons of money.

Sadly, this is not true. HDB flats are generally not good investment vehicles (compared to condos). Check out our article comparing BTO, Resale Flats and ECs.

While high resale prices are possible, they are certainly not the norm. HDB resale prices actually decreased by 0.2 per cent from June to July. The decrease is largely attributed to an oversupply in the resale market. More flats are reaching their Minimum Occupancy Period (MOP), causing a dip in resale prices.

High Resale Prices are not the norm (that’s why they are often reported)

Last year, 71 HDB units fetched resale prices more than $1,000,000. However, they represent only a fraction of the total resale transactions (3.5 per cent). Most of these are record-breaking purchases are made by home-owners who buy the property for personal stay. Thus, they tend to care less about rental yields or capital accumulation.

Would you pay a million dollars for a HDB flat? Voice your thoughts in our comments section or on our Facebook community page.

Looking for a property? Find the home of your dreams today on Singapore’s largest property portal 99.co! You can also access a wide range of tools to calculate your down payments and loan repayments, to make an informed purchase.

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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.

If you’re looking for your dream home, be it as a first-time or seasoned homebuyer or seller – say, to upgrade or right-size – you will find it on Singapore’s fastest-growing property portal 99.co.

Meanwhile, if you have an interesting property-related story to share with us, drop us a message here — and we’ll review it and get back to you.

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