{"id":25289,"date":"2023-02-02T11:50:17","date_gmt":"2023-02-02T03:50:17","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=25289"},"modified":"2023-02-02T12:00:55","modified_gmt":"2023-02-02T04:00:55","slug":"3-room-versus-4-room-versus-5-room-upgrading","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/3-room-versus-4-room-versus-5-room-upgrading\/","title":{"rendered":"3-room, 4-room or 5-room HDB flat: Which property has the highest appreciation?"},"content":{"rendered":"
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When we’re planning to buy an HDB flat<\/a> 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.<\/p>\n

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 <\/em>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.<\/p>\n

But before that, let’s go through a little refresher:<\/p>\n

Understanding market trends and demographics<\/h3>\n

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.<\/p>\n

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.<\/p>\n

The role of renovation and upkeep in property values<\/h3>\n

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.<\/p>\n

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.<\/p>\n

Now that we’re refreshed, let’s a look at the numbers:<\/p>\n

3-room vs 4-room vs 5-room HDB flat: Which flat type appreciates better over time?<\/h2>\n

To find some answers, we looked at price movements of 3-room<\/a>, 4-room<\/a>, and 5-room HDB flats<\/a> over 15 years. Here’s what we found.<\/p>\n

\"comparison<\/a>
Price appreciation of 3-room, 4-room and 5-room HDBs from 2008 to 2023<\/figcaption><\/figure>\n

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.<\/p>\n

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.<\/p>\n

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.\"Seller<\/a><\/p>\n

Let\u2019s now look at how the average prices psf have risen in the past 15 years across the three flat types.<\/p>\n

\"psf<\/a>
Average price psf increase of 3-room HDBs<\/figcaption><\/figure>\n

3-room flats have a price increase of 73.6%, increasing from S$323 psf to S$557 psf from 2008 to January 2023.<\/p>\n

\"psf<\/a>
Average price psf increase of 4-room HDBs<\/figcaption><\/figure>\n

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.<\/p>\n

\"psf<\/a>
Average price psf increase of 5-room HDBs<\/figcaption><\/figure>\n

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.\u00a0\u00a0<\/span><\/p>\n