Why Buying A Condo Near HDB Flats Could Be Your Best Property Move

Some homebuyers associate the lack of nearby HDB flats (i.e., a low-density area) with luxury. We see this among landed homes, for instance, or in areas like Bukit Timah. But this has also sometimes led to the misconception that being near HDB flats is somehow “bad.” In reality though, being near an HDB enclave can be excellent for resale; and even the top-selling new launches reflect this. Here’s why being a short walk away from the HDB blocks bodes well for many condos:

Why does having an HDB enclave nearby increase demand?

1. Higher demand from nearby HDB upgraders

Chuan Park has been one of the latest top-selling new launches, and you’ll notice it’s right next to the HDB enclave along Serangoon Avenue 2. This was one of the strengths of the launch: there was pent-up demand from HDB upgraders from this area to the wider locations all the way to around NEX. The previous launch here, The Scala, was almost 15 years ago, giving upgraders few condo options close to home. 

We saw this again with AMO Residence in 2022: AMO’s location in District 20 is not, in itself, outstanding. However, there was pent-up demand from the HDB enclave surrounding it, where it provided a condo option for upgraders. Meanwhile, in District 15, we’ve seen Grand Dunman and Tembusu Grand rack up sales numbers, being close to HDB enclaves near them. 

As most realtors will tell you, most HDB upgraders prefer not to move too far away from home. East-enders are famous for refusing to move further west than Paya Lebar, whilst some West-enders will roll their eyes at Orchard (they think Jurong East is just as good, and possibly better). If there’s a condo – be it a new launch or resale – that lets them hang out in the same malls, visit the same coffee shops, go to the same clinics, etc. then those will be the first to get shortlisted.

This is also an effect of our ageing society, so we’ll see more of it going forward

Whether it’s the parents or children living in the condo, the priority is to be living closer. 17.3 per cent of our population was over 65 last year, and that number is going to grow. Homebuyers now have an eye toward looking after their parents (and sometimes, their parents looking after the grandchildren). 

While some people treasure low-density areas, a smaller number are happy to end up living 20 to 30 minutes drive away, and fewer Singaporeans may find that practical over the coming decades.

2. Access to heartland amenities 

Unless the condo is mixed-use, it’s hard to overrate how important this is. Notice how the Flora Drive area condos have a cap on their pricing, despite being quiet and tranquil areas: it’s not simply just the lack of accessibility, but the lack of heartland amenities like minimarts, salons, coffee shops, etc. 

As an aside, it’s often overlooked how these heartland amenities can’t be found in higher-end malls. Certain businesses (such as a neighbourhood tuition centre) just don’t generate the kind of revenue needed to be in a mall like ION Orchard. And these amenities often end up being better for day-to-day needs, compared to a shop with designerwear, or expensive restaurants. 

(Also note that market and food centres, as well as HDB-run malls, tend to be far from purely private-home clusters) 

One area to watch is Bayshore: this neighbourhood has long been deprived of immediate access to good coffee shops, salons, minimarts, etc. (barring those in condos themselves). Once the new Bayshore HDB estate is built, however, we might see more demand, as the HDB amenities fill a long-needed gap. 

Realtors on the ground have already noted more inquiries and interest in the cluster of condos here (The Bayshore, Bayshore Park, and Costa Del Sol), despite some conjecture that an HDB enclave would remove the low-density feel and potentially lower values. 

There’s also a greater chance that URA will take steps to fix connectivity issues if you’re near an HDB enclave. 

Landed housing is usually far from public transport, because it’s assumed that (1) the homeowners probably like the exclusivity, and (2) anyone living there can afford a car. The same set of assumptions can go toward some condo projects.

If an HDB enclave appears or is already present though, it’s now a more public area – and that usually means something is in the works, be it an extension of a bus route, the LRT, or a future train station. 

3. Better rentability in general

Unless you’re looking at renting to a very niche, high-end portion of the market, condos near HDB enclaves tend to have better rentability. 

(Note: Rentability as in it’s easier to find and retain tenants; it may or may not translate to a higher rental yield). 

Most tenants also appreciate not having to drive or use the cab; and they make as much use of coffee shops, minimarts, markets and food centres, etc. as the typical homeowner. In more exclusive and high-end areas, tenants may be priced out by more than just rent: amenities in an area like Clarke Quay or Marina Bay may be too much for everyday expenses, even if they can afford to rent a one or two-bedder there. 

Also don’t overlook short-term rentals from HDB upgraders, or people waiting for a new flat to be ready: you’re more likely to find Singaporean tenants in these areas as well, not just foreigners. 

Remember the horrible Midwood ad that caused so much controversy?

Truth is, the ad exposed an ongoing misconception: there are still homeowners who consider the lack of HDB presence a huge advantage, and assume it’s more exclusive or better for gains. 

While a select group of buyers may feel this way, we’d say it’s not – at least not now – the majority. There’s been a definite shift in mindset over the years, and having HDB blocks nearby is increasingly seen as an upside.