Are You Single, Over 35 And House Hunting? Here’s How To Choose Between An HDB Or Condo

35 is an important year for a single Singaporean, as this is when you can buy your HDB flat; and with new rules on flat selection, you can buy anywhere in Singapore. If you’re in a position to afford a resale condo though, would this be a better choice? Here are some of the main things to consider before you pick:

Some of the main factors in HDB flats versus resale condos

	HDB Flat	Resale Condo
Price	$585 psf for resale flats; BTO flats are even cheaper	Average of around $1,619 psf
Financing issues	HDB loan is possible, which is usually cheaper and allows for a bigger LTV ratio Possible to buy without cash down	Bank loans are generally pricier, and there’s a lower LTV ratio First 5% must be paid in cash
Waiting time to move in	Three to four years for BTO flat	Only need to wait for renovations
Lease decay issues	Remaining lease can impact your CPF usage  Generally more pronounced, as only a tiny number of flats are selected for SERS	Can be freehold (although that’s pricier)  Even if leasehold, there is a chance of an en-bloc sale to a private developer
Facilities and maintenance	None, but that also means you don’t pay high maintenance fees	Pool, gym,  etc., but you might pay around $400 a month for these
Monetisation of the unit	Can rent out rooms only, until the MOP is over	Can start renting out the whole unit at once if you like
Minimum holding period	At least five years for MOP, or 10 years in Plus and Prime areas	Technically none, but stamp duties apply if you sell within the first three years
Eligibility issues	You need to buy under one of the available HDB schemes	No real restriction beyond what you can afford

An obvious thing to note is the price differences between an HDB and condo. Singles would usually go for either a 3 or 4-room flat, so here's a comparison between both asset types based on transactions from May 2023 - 2024.

3-Room flat equivalent

Estate	HDB Resale Price	HDB Avg Size (Sqm)	Condo Resale Price	Condo Avg Size
ANG MO KIO	$407,451	71	$1,366,806	68
BEDOK	$385,654	68	$1,226,486	66
BISHAN	$457,414	65	$1,513,088	68
BUKIT BATOK	$403,057	68	$1,139,844	69
BUKIT MERAH	$496,817	67	$1,558,187	68
BUKIT PANJANG	$406,761	71	$1,126,200	69
BUKIT TIMAH	$473,321	73	$1,439,573	70
CENTRAL AREA	$477,366	65	$1,746,221	69
CHOA CHU KANG	$400,350	70	$799,000	66
CLEMENTI	$439,207	69	$1,262,503	68
GEYLANG	$377,210	63	$1,360,613	66
HOUGANG	$409,274	68	$1,060,373	66
JURONG EAST	$377,513	71	$1,351,500	63
JURONG WEST	$360,735	67	$1,247,939	69
KALLANG/WHAMPOA	$444,539	67	$1,325,562	67
MARINE PARADE	$442,689	68	$1,190,000	69
PASIR RIS	$506,281	67	$1,017,643	71
PUNGGOL	$475,229	68	$1,103,042	72
QUEENSTOWN	$449,537	65	$1,588,778	66
SEMBAWANG	$449,245	68	$1,030,611	72
SENGKANG	$470,762	68	$1,089,171	67
SERANGOON	$413,269	66	$1,301,404	66
TAMPINES	$447,954	71	$1,082,617	68
TOA PAYOH	$406,550	67	$1,383,424	66
WOODLANDS	$389,271	68	$878,555	69
YISHUN	$401,386	69	$1,028,998	67
Average	$419,043	68	$1,298,282	68

4-Room flat equivalent

Estate	HDB Resale Price	HDB Avg Size (Sqm)	Condo Resale Price	Condo Avg Size
ANG MO KIO	$519,902	93	$1,633,730	95
BEDOK	$473,172	93	$1,374,944	92
BISHAN	$589,924	98	$1,764,436	94
BUKIT BATOK	$460,221	96	$1,239,106	96
BUKIT MERAH	$695,996	93	$1,894,711	96
BUKIT PANJANG	$425,352	96	$1,531,906	95
BUKIT TIMAH	$648,577	99	$1,800,758	95
CENTRAL AREA	$796,531	91	$2,268,400	94
CHOA CHU KANG	$414,049	100	$1,042,278	93
CLEMENTI	$601,518	92	$1,652,996	95
GEYLANG	$559,658	94	$1,777,744	93
HOUGANG	$452,508	97	$1,436,888	97
JURONG EAST	$436,721	96	$1,496,988	95
JURONG WEST	$413,415	98	$1,525,299	96
KALLANG/WHAMPOA	$643,865	93	$1,582,929	93
MARINE PARADE	$522,262	86	$1,929,699	98
PASIR RIS	$465,299	104	$1,348,581	97
PUNGGOL	$501,402	93	$1,447,964	94
QUEENSTOWN	$750,412	91	$1,782,851	93
SEMBAWANG	$431,340	93	$1,191,513	95
SENGKANG	$469,003	93	$1,402,394	95
SERANGOON	$494,316	96	$1,812,551	99
TAMPINES	$483,752	100	$1,275,599	95
TOA PAYOH	$615,953	93	$1,877,233	95
WOODLANDS	$399,004	97	$1,045,568	95
YISHUN	$409,658	93	$1,255,943	94
Average	$487,043	95	$1,559,318	95

Based on the data, condo prices are around 3 times more expensive than HDBs. This doesn't mean you'll need 3 times the income though, as private properties follow the Total Debt to Servicing Ratio (TDSR) rule of 55% while HDBs follow the Mortgage Servicing Ratio (MSR) of 30%. We'll look into the minimum income required below.

1. Financing issues between HDB flats and condos

HDB flats can be financed with either the HDB concessionary loan, or a bank loan. 

The HDB loan is generally preferable today, as the interest rate almost never changes: it’s 0.1 per cent above the prevailing CPF rate, which comes to 2.6% per annum. This has remained unchanged for almost two decades. 

Private bank loans, which you’ll need for a condo, tend to have higher rates right now; it’s about 2.9%. However, note that these rates can change a lot over the years - in the time between 2009 to around 2018, for example, bank loan rates were actually cheaper than HDB rates. 

Do note that some buyers may be told to get a bank loan anyway, even when buying an HDB flat. This can be for reasons like your income level. That's because HDB isn’t obliged to grant you their loan. 

Another significant factor is the LTV ratio and minimum cash down

Flats aren’t just cheaper, you also have a lower upfront payment. 

The HDB loan has a minimum down payment of 20% of the flat’s price or value (whichever is lower). A bank loan has a minimum down payment of 25% of the property’s price or value (whichever is lower). 

In addition, for bank loans, the first 5% must always be paid in cash. For HDB loans, the 20% down payment can be in any combination of cash or CPF, which means you can pay it entirely with CPF if you want.

As such, singles who have yet to accumulate a “nest egg” for their first home tend to be better off with HDB flats; not just because they’re cheaper, but because they can get financing from HDB instead of a bank.

That said, HDB loans have a slightly tighter restriction in the form of the Mortgage Servicing Ratio (MSR)

Under the MSR, your flat’s monthly loan repayment can never exceed 30% of your monthly income. This applies to all HDB properties.

For condos, the limitation is the Total Debt Servicing Ratio (TDSR). This caps your monthly home loan (inclusive of other debts like car loans) to 55% of your monthly income. 

Frankly though, the MSR and TDSR are seldom the issue for most first-time buyers. The minimum cash down tends to be the bigger concern.

Now here's a look at the minimum income you'll need as a single based on the MSR and TDSR rule. We assume that a floor interest rate of 3% is applied for HDB loans and 4% is applied for bank loans based on MAS's latest ruling and the loan tenure is 25 years for HDB, and 30 years for a bank loan.

Estate	3 Room Flat HDB	3 Room Equivalent Condo	4 Room Flat HDB	4 Room Equivalent Condo
ANG MO KIO	$4,830	$8,898	$6,164	$10,636
BEDOK	$4,572	$7,985	$5,610	$8,951
BISHAN	$5,423	$9,851	$6,994	$11,487
BUKIT BATOK	$4,778	$7,421	$5,456	$8,067
BUKIT MERAH	$5,890	$10,144	$8,251	$12,335
BUKIT PANJANG	$4,822	$7,332	$5,043	$9,973
BUKIT TIMAH	$5,611	$9,372	$7,689	$11,723
CENTRAL AREA	$5,659	$11,368	$9,443	$14,768
CHOA CHU KANG	$4,746	$5,202	$4,909	$6,785
CLEMENTI	$5,207	$8,219	$7,131	$10,761
GEYLANG	$4,472	$8,858	$6,635	$11,573
HOUGANG	$4,852	$6,903	$5,365	$9,354
JURONG EAST	$4,476	$8,799	$5,177	$9,746
JURONG WEST	$4,277	$8,124	$4,901	$9,930
KALLANG/WHAMPOA	$5,270	$8,630	$7,633	$10,305
MARINE PARADE	$5,248	$7,747	$6,192	$12,563
PASIR RIS	$6,002	$6,625	$5,516	$8,780
PUNGGOL	$5,634	$7,181	$5,944	$9,427
QUEENSTOWN	$5,329	$10,343	$8,896	$11,607
SEMBAWANG	$5,326	$6,709	$5,114	$7,757
SENGKANG	$5,581	$7,091	$5,560	$9,130
SERANGOON	$4,899	$8,472	$5,860	$11,800
TAMPINES	$5,311	$7,048	$5,735	$8,304
TOA PAYOH	$4,820	$9,006	$7,302	$12,221
WOODLANDS	$4,615	$5,720	$4,730	$6,807
YISHUN	$4,759	$6,699	$4,857	$8,176

From the table, the only estate where a single earning the median income can afford a private condo is Choa Chu Kang. Woodlands narrowly follows behind. Even then, it's not advisable for singles to max out their income.

2. Facilities and maintenance

This is the next biggest issue, beyond financing. HDB conservancy fees are very low, usually below $100 a month (unless you have an unusually big flat, like a jumbo). If you're curious to know what your conservancy fees would look like, you can check out the respective town council's website.

For condos, the maintenance fees are typically based on Share Value (SV). This starts at 5 for the first 50 sqm, and increases by 1 for each 50 sqm beyond that. As of 2024, monthly fees of $75 to $90 per share value are quite common, so you can expect to pay about $200 to $400 a month. 

In return for this, you get facilities such as a pool, gym, clubhouse, 24/7 security, etc. Is it worth it? It’s up to you, as it’s down to your lifestyle preferences.

3. How quickly you can monetise the unit, if you have to 

If your intent is to stay somewhere else while renting out the unit (e.g., you’re living with parents while renting out the property), then the resale condo is more easily monetised. You can start renting it out as soon as your renovations are finished. 

For HDB flats, you need to wait until the five-year MOP is over, before you can rent out the whole unit (you can rent out individual rooms though, if it’s at least a 3-room flat). Because the MOP starts from the key collection by the way, a BTO flat would require a wait time of eight to nine years (because you have to apply, and wait for it to build, plus the MOP), before you can rent out the entire unit.

Being able to rent out the unit immediately can be an important backup plan.

Even if being a landlord isn’t your main intent, you do have the option of living with parents, renting a cheaper HDB room, etc. while renting out your whole condo. This can be a lifesaver, if your financial situation takes a bad turn. 

And whilst we don’t advise using it casually, condos do allow you to use cash-out refinancing. This is when you take out a loan (even if you still have an outstanding home loan) against the appreciated value of your condo, from the same mortgage bank. This is usually close to the current home loan rates, so it’s a much cheaper way to borrow a large sum. This option doesn’t exist for HDB properties.

Stick to the usual 3-3-5 rule if you want to be absolutely prudent

The 3-3-5 rule means your monthly loan repayment shouldn’t exceed 30% of your monthly income (even if a bank allows otherwise), you should have at least 30% of the initial capital needed, and the total price shouldn’t exceed five times your annual income. 

We’d also suggest factoring maintenance fees into your budgeting. Most condos will slap a hefty 15% interest rate on late maintenance fees, so if you can’t comfortably pay it on time, it’s best to avoid the condo. 

One parting consideration is age and the subsequent difficulties in getting a home loan 

The ages of 35 to 40 are a sort of “golden period” for property ownership, especially for private properties. This is because you’re at the age when you can qualify for maximum loan tenure without penalties. That’s 25 years for HDB, or 30 years for the bank. 

However, if the loan tenure plus your age exceeds 65, then your maximum loan amount will be reduced; possibly requiring a down payment of 45% or higher. So if you wait till 45 to buy a private property, for example, your loan tenure would have to be capped at 20 years to secure the full loan. 

Don’t feel rushed into buying just for this reason - affordability is still more important. But if you do have the means to buy a condo, it’s something to keep in mind.