Where To Find The Cheapest And Biggest HDB Flats In 2024 (From $690,000)

The cheapest HDBs in Singapore are all 2-room and 3-room HDB flats. While a low quantum is nice, no one wants to cram into a 3-room HDB flat with their brother, sister, parents, grandparents, etc. Quite a few Singaporeans will point to lack of living space as a reason for the low birth rate – and given that HDB buyers are overwhelmingly families, size may count for even more than in the private market. For that reason, we’ve picked out the areas where you can currently find both the cheapest and biggest HDB flats:

Cheapest and biggest HDB flats by town

The following are the transaction amounts for the biggest and cheapest HDB flats in 2023. Note that we’ve based our numbers on the biggest HDB flats being a minimum of 150 sqm. and above, so only HDB flats above that number were taken into consideration:

Cheapest and biggest HDB flats in Jurong West

Cheapest and biggest HDB flats in Bukit Batok

Cheapest and biggest HDB flats in Choa Chu Kang

Cheapest and biggest HDB flats in Jurong East

Cheapest and biggest HDB flats in Woodlands

1. A surprising number of transactions are in the range of $800,000 or below

Due to the last few years, the general expectation is that a big HDB flat (150 sqm. or more) will almost always reach the $1 million (or at least $900,000+) mark; but based on the transactions above, you can see a surprising number of Executive Apartments (EAs) and maisonettes can still be had for $800,000 or below. 

In terms of affordability, how does that work out?

Consider an $800,000 EA in Woodlands. Assuming a maximum bank loan quantum of 75 per cent, this is about $40,000 in cash and $160,000 in CPF. This leaves a total loan quantum of $600,000. 

With a loan tenure of 25 years and a floor rate of four per cent per annum, this comes to about $3,167 per month. Given the Mortgage Servicing Ratio (MSR) of 30 per cent, this would require a combined borrower income of about $10,556 per month.

As of 2023, the median income per household was $10,869 per month – so in theory, about half of the Singaporeans out there could afford a HDB flat of this size; assuming they’re willing to settle for a cheaper location like Woodlands. 

The sticky bit here though, is the HDB valuation:

2. The tricky part for most buyers will be the HDB valuation

In our experience, most buyers don’t have an issue meeting the MSR. Rather, the issue is the cash component: the minimum of five per cent cash down*, plus any Cash Over Valuation (COV). 

In the above example, there’s a good chance that the actual HDB valuation on the HDB flat will be lower than the asking price (e.g., for our $800,000 EA, the actual valuation maybe $750,000. HDB is quite conservative in its valuations). 

As the home loan can only cover the lower of the valuation or sale price, the excess amount (i.e., the COV of $50,000 between the asking price and valuation) needs to be paid in cash. If you couple this with the minimum cash down for a bank loan, some buyers may find themselves struggling with the initial cash outlay. 

We also find, from simple experience, that owners of EAs and maisonettes tend to expect much higher COV, as their HDB flat types are so rare; they know they likely won’t be able to own similar in future. As such, first-time homeowners may still find it a struggle to buy these units, even in the cheaper HDB towns. 

*This is for bank loans, for HDB loans the minimum down payment is 15 per cent of the price or value (whichever is lower), and all 15 per cent can be in any combination of cash or CPF. 

3. Jurong East is unexpectedly cheap given the area’s transformation

Note that there were only four transactions for Jurong East, but we have to cover these as they were surprisingly competitive. Jurong East has seen a substantial transformation, and is intended to be the “second CBD” of Singapore: this can be seen in the cluster of malls, offices, and entertainment outlets that are now near the Jurong East MRT station (JEM, Westgate, the upcoming J’Den, IMM, and more).

As such, the recent high prices and quick sales of J’Den is a good illustration of rising demand. 

So it is possible that these four transactions may be the last shadows of more affordable, big HDB flats in Jurong East, and prices may not stay as they are for long. 

4. Lease decay still isn’t at the halfway mark for most units

One advantage of the cheaper areas above, as compared to the usual hotspots like Tiong Bahru or Queenstown, is the lease decay. 

Admittedly, these EAs and maisonettes are still mostly among the older HDB flats; but note that the ones in Woodlands still date back to the 1990s, while the others are mostly from the mid-1980s. This is not yet halfway through their 99-year lease, so even a 50-year-old buyer might reasonably obtain one without restrictions (e.g., no prorated use of CPF funds, because the HDB flat can likely last until the youngest buyer is 95). 

This is something to think about besides the lower quantum if you’re deciding between these HDB towns and the most common hotspots. 

We still wouldn’t go so far as to call these HDB flats cheap 

For first-time home buyers, or those on a budget, an EA or maisonette is likely out of reach even in a “cheaper” HDB town – it’s probably still safer to start with a small resale or BTO flat and trade up later. 

But if you’re in urgent need of a big HDB flat you can move into right now, well, Singapore is a small country. I guess we just have to be grateful that, even if we need to travel to our office from Woodlands, it’s probably not going to be more than an hour (or maybe ask to work from home…)

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