We Can Buy Two HDBs Today — Is Waiting For An EC A Mistake?

Dear Stacked,

This is MM, writing in to seek your guidance on some property planning decisions that my partner (VM) and I are considering. We’re mainly weighing EC versus different HDB-based strategies, with self-stay as our primary objective and long-term asset optimisation as a secondary goal.

Given the complexity of current policies and market dynamics, particularly given our same-sex relationship situation, we want to be careful not to make decisions that might limit our flexibility later on. We’ve summarised our background and key questions below.

Background:

• Same-sex couple, both Singapore Citizens.
• Prefer properties built 2010 or later, due to lease decay concerns.
• With plans to buy a home this year, with a budget of around $650,000.
• MM is considering buying a property in 2027 after turning 35, or earlier, with parents as occupiers – they are long-term visit pass (LTVP) holders. Purchasing budget is about $800,000.
• Primary goal: self-stay
• Secondary goal: reasonable capital appreciation

1) Strategy comparison

a) EC route (the waiting option)

• Wait until one of us turns 35 to apply under the Joint Singles Scheme
• Objective: capital appreciation after MOP

Concerns: opportunity cost, income ceiling risk, current EC pricing

Questions:

1. Does the risk–reward of waiting for an EC still make sense today?
2. Under what pricing or market conditions would an EC be worth waiting for?

b) Two resale HDBs (separate ownership)

• Each of us buys one resale HDB in different locations
• One for self-stay, one for rental
• Likely one four- or five-room and a three-room
• Long-term plan: move into the smaller unit and rent out the larger one

Questions:

1. For similar price points, should we prioritise location or size?
2. Is this configuration generally optimal, or are there better-performing alternatives?
3. How can returns be optimised while keeping one unit for own stay?

c) Mixed strategy: resale HDB + BTO two-room Flexi

• MM buys a resale HDB
• VM applies for a Prime or Plus two-room Flexi

Questions:

1. How does this compare long-term with two resale HDBs or waiting for an EC?
2. What are the trade-offs in terms of capital appreciation, liquidity, and flexibility?
   

2) Final thoughts

Overall, we would like some guidance on how we should assess whether a resale HDB price is reasonable, especially considering the difference between asking prices we see on listings and actual transacted prices in an area.

Moreover, are there regulatory or housing policy considerations we need to keep in mind as a same-sex couple? Do any of these factor as long-term constraints we should be mindful of as we plan our home ownership journey?

Given our situation, how should we structure our property buying strategy? Thank you very much for your time and guidance.

Hi MM and VM, thanks for writing in, and for laying out your situation so clearly.

In your case, we feel this is more than simply comparing Executive Condominiums (ECs) to HDB flats. It’s also about the sequence of how you buy the properties. Ideally, this should be done in a way that preserves flexibility and won’t box you in later.

Let’s look at the first option:

Does waiting for an EC make sense? 

In general, an EC is the preferred path for those who intend to upgrade. This property segment has a proven track record for capital appreciation, and you’ve probably heard about potential windfalls once the five-year Minimum Occupation Period (MOP) is up. 

However, the performance of ECs in the resale market has changed in recent years. Rather than rely on seemingly outdated perceptions, let’s look at the resale performance among some recently completed EC projects. This will give you a sense of what you can expect once the MOP is fulfilled and the EC enters the resale market.

The following are ECs that obtained their Temporary Occupation Permit (TOP) between 2019 and 2020. These projects attained their MOP in 2024/25*, making them a good representation of how newer ECs have performed recently.

*The MOP starts counting down after the unit is completed, not from the time you purchase the EC from the developer. 

• Rivercove Residences (TOP 2020, MOP 2025)
  
• Hundred Palms Residences (TOP 2019, MOP 2024)
  
• iNz Residence (TOP 2019, MOP 2024)
  
• Northwave (TOP 2019, MOP 2024)

For each of the above projects, we’ll compare average prices at launch with average resale prices. This will show the actual price growth of the ECs.

Average new sale $PSF

Average resale $PSF

On average, prices rose by about 39% across the four ECs, between launch and resale. 

Hundred Palms Residences is an outlier, with a significant increase of 61.1%. But that’s because Hundred Palms has a lot of unique advantages (you can check out the reasons here). We wouldn’t consider it to be representative of typical ECs on the market. 

While most ECs delivered strong capital returns, the data indicates that performance can differ significantly between projects. With that in mind, the next question to ask is:

How much more does an EC cost, versus a private condo?

ECs are cheaper than private condos, but by how much? This is one of the deciding factors to consider. To assess whether buying a new EC still makes sense today, we compared:

• New EC transactions in 2025, and
  
• New private condominium launches transacted in the same year, within the same districts

Let’s see if there’s still a significant price advantage versus a private condo:

Based on caveated transactions in 2025, we can see that the average price of a new three-bedroom EC is still much cheaper than its private residential counterpart in the same area. If we compare with the private residential market, the price of a three-bedder EC today will likely get you a compact one- or two-bedder.

Based on your stated budgets of about $650,000 and $800,000 each, a joint EC purchase of around $1.45 million could realistically get you a three-bedder, subject to the prices at each project. And when we compare alternatives in that price range, we think that ECs offer you much more space for the same amount of money.

Now let’s look at what happens after MOP for a resale EC versus a resale condo.

Bear in mind that a significant difference between the two types of properties is that you have to wait till after the five-year MOP to sell an EC. There’s a drawback to selling private condos earlier as well, in the form of the Sellers Stamp Duty (SSD), but you at least have the option if you really have to. 

That said, here’s how the resale results look for either side, as of 2025:

In many districts, resale ECs are no longer significantly much cheaper compared to resale private condos. Once ECs enter the resale market, their prices tend to catch up to those of mass-market private condominiums in their area.

This also stems from the improvements in build quality, architecture, and facilities among new EC projects. Over the past decade, ECs have come with a slew of facilities and finishes in their units that are much more aligned with the standards we typically associate with condos, hence the narrowing price gap. 

Addressing your questions on the EC option.

Based on the data above, waiting for an EC can still make sense, with the caveat that not all ECs deliver the same outcome. Recent ECs that have cleared their MOP have seen good gains in terms of resale price, and the relatively lower entry price provides a lot of room for upside capital gains. 

That said, the gap between the launch price of ECs and private condos have narrowed in recent years. As such, an EC is likely to be worth waiting when we can expect a significant price gap between the EC launch, and average price of new condos in the same district or neighbourhood. 

One other upside is that new launches, including ECs, use a Progressive Payment Scheme – so you won’t be paying the full loan amount at first. The repayment amounts will scale with completion milestones. 

That said, a final consideration is a back-up plan in case your income rises significantly, closer to the time to buy. While this is a good problem to have, busting the EC income ceiling ($16,000 per month) could force your hand to go for a private housing option.

Now let’s look at the second option, which is to own two resale flats under each of your names.

This is a more flexible approach. It also allows you to live in one unit, rent out the other, and switch things up as work locations or priorities change. However, resale flats are pricier than newly launched BTO flats, and can sometime involve Cash Over Valuation (COV). Here are the average prices across HDB towns as of 2025:

With budgets of about $600,000 and $850,000, that affordability could see you buy more than just a three-room or a four-room flat. A five-room flat is not out of reach for you in some towns.

But, given that you have an eye toward investment, here’s the price movements of resale flats over the past decade:

*Note that the data includes flats that just reached their MOP. These newer resale flats often fetch a premium, and may skew the average upward. 

It’s probably no surprise to see that the price growth of four- and five-room flats tend to do better. Most Singaporean households typically consider four-room flats to be a sweet spot for a family home in terms of affordability and living space, so there’s consistent demand for four-room and larger units.

In addition, we may be seeing a slight bump in the demand for larger-sized flats because these were in particularly high demand just after the Covid-19 pandemic.

It’s also worth taking note that recent Prime location launches have stopped offering five-room flats. This means that five-room flat availability isn’t growing in these areas, and the scarcity will help prop up their prices; at least until lease decay catches up. 

Finally, here’s a snapshot of rental performances of these flats.

Because rental income is part of your plan, we also looked at rental yields using 2Q2025 HDB rental rates, versus 2025 resale prices. This will provide the gross rental yield.

Note that gross rental yield = (annual rental income / total flat price), so the reason for some exceptionally high yields, such as in Jurong West, is simply that the flat prices are lower. Conversely, areas with high priced flats like the central area, or mature towns like Toa Payoh and Kallang / Whampoa, have correspondingly lower gross yields.

For this same reason, renting out the smaller flat (which has a lower cost and hence higher yield) is usually the more efficient choice.  We’d also suggest you familiarise yourself with HDB rental rules and restrictions, before going ahead with this. 

Addressing your questions on owning two resale HDB flats.

If you’re going this route, it makes sense to focus on the location for one of the flats, but be flexible with regard to size. A good location makes a flat easier to sell later, and gives you more options if plans change. Size mainly affects comfort, but it doesn’t always mean better demand.

The flat you live in should be convenient for daily life, with good transport and amenities. The second flat should be chosen with renting in mind, so  that it’s easy to find tenants and easy to sell if needed. Buying one bigger flat and one smaller flat is a sensible setup. 

A four-room and three-room combination often works well. The bigger flat is easier to sell to families, while the smaller flat usually costs less and hence means a higher yield. If you choose a five-room flat, note that price differences are much wider across various towns.

Staggering your purchases is also ideal, since this reduces the risk of buying both flats at a bad time, and gives you a chance to adjust your second purchase based on what you’ve learned from the first. Prioritise flexibility over maximising returns, and try to ensure one flat can support itself through rental income if needed. 

Now let’s look at the final option: owning a resale flat, plus a BTO two-room flat.

This option is a bit safer, because you know roughly what you’re paying and the outcome is a bit more predictable. But there are some subtle downsides. 

A Prime or Plus two-room Flexi BTO comes with a 10-year MOP, and even after that, you cannot rent out the whole flat. This pretty much means the flat has to be your long-term home, and returns come a very distant second. 

If you decide to sell in the future, you need to pay a subsidy clawback to HDB. The exact amount of this subsidy recovery varies by project. On top of that, anyone who buys the flat from you will face the same 10-year MOP, income ceiling, and rental restrictions. Together with the smaller size, this means a much smaller buyer pool. 

How do two-room flats perform right out of MOP?

We looked at recent sales of two-room flats that have just reached MOP, to see how they perform when sold.

Eastcreek @ Canberra (Launched in 2016, MOP in 2025)

Valley Spring @ Yishun (Launched in 2016, MOP in 2025)

Northshore Residences II (Launched in 2015, MOP in 2025)

Two-room BTO flats still see decent price gains when they hit MOP, mostly because their prices start off much lower. But remember this doesn’t take into account other costs like stamp duties and conservancy fees.

Addressing your questions on owning a resale flat and a BTO 2-room flat.

Compared to the other options, this one is the safest financially, but most restrictive in terms of flexibility. 

A 10-year MOP is a long time, even longer if you consider the total wait is the construction time plus the MOP.  Compared to owning two resale HDBs, this gives you much less room for flexibility in your purchase planning.

With two resale flats, you can change how each one is used over time. for example, live in one, rent out the other, or switch if plans change. A two-room flat doesn’t really allow that and remember that you cannot rent out a room in a two-room flat (it must be at least 3-room). 

Compared to waiting for an EC, this option sits at the opposite end of the spectrum. ECs involve longer waiting times in addition to their usual MOP, but once they clear these hurdles their price performance echoes normal condos. A two-room flat remains an HDB property to the very end.

So a BTO two-room Prime location flat has room for capital gains and is likely the cheapest way to own a home in a central area. But part of that gain will be clawed back and selling can be slower because the unit is small, and eligibility restrictions are stringent.

This option works best if you want certainty and are happy staying put in the flat for a long time. If flexibility matters, this choice is very limiting. 

Addressing your pricing and valuation questions. 

The best way to tell if a resale HDB price is reasonable is to look at recent transacted prices for similar flats. Focus on units in the same block or nearby, with a similar remaining lease, same flat type, and roughly the same floor level. Don’t fixate on finding one “perfect” price.

In terms of fair value, look for a cluster of units where recent transactions (past year) sit within a narrow range. If you find this, the price range is usually – though not always – a good representation of market value. A price starts is likely stretched when it sits above this range without a strong reason like a better facing, very high floor, etc.

Asking prices should be treated with caution. They reflect what sellers hope to get, not what buyers actually pay; and listing labels don’t help much either. “Negotiable” doesn’t automatically mean cheap, and “starting from” is usually just a marketing hook to attract enquiries. Instead, focus on how long similar flats have been on the market, and whether their final selling prices line up with recent transactions.

There are also a few common traps to watch out for. 

One is assuming that transacted prices always match bank valuations. If the seller asks for a Cash Over Valuation (COV), where the sale price is higher than HDB’s valuation, this difference must be paid in cash – so be prepared for that. The Buyers Stamp Duty (BSD) is also based on the higher of the price or valuation, so this pushes up the stamp duty a bit too. 

Lastly, renovations rarely add value dollar for dollar. They improve liveability, but it’s very unlikely that future buyers will pay a lot more for it. There are cases of buyers tearing down even renovations that were made two or three years ago, because it’s important for them to customise their own home. If they’ll do that, they likely don’t care about your state of renovations when selling.

Risks and blind spots

Joint tenancy vs tenancy-in-common: why it matters

When buying a property together, there are two main ways to structure ownership, and the difference matters more than many buyers realise.

With joint tenancy, both owners are treated as owning the property together as one unit. The shares are equal, and if one owner passes away, their share automatically goes to the other owner. This setup is common for married couples who want the home to pass straight to their spouse.

With tenancy-in-common, each owner holds a separate share of the property, and the split doesn’t have to be 50–50. If one owner passes away, their share does not automatically go to the other owner. Instead, it can be passed on according to a will, to a family member or someone else you choose. This gives you more control over what happens to your share in the future.

Note that being the majority shareholder does not mean total control over the property. Just because one party owns 99% and the other owns 1%, it doesn’t mean the owner of the 99% can kick out the other owner. 

For same-sex couples, tenancy-in-common is often the more practical option, especially if you’re contributing different amounts, or want flexibility in estate planning for respective sides of the family. 

That said, there’s no one-size-fits-all. Talk to your conveyancing firm about how you want ownership, inheritance, and future planning to work for both of you.

Summary Comparison: How the Three Strategies Stack Up

A parting note on the investment-related concerns

If we were in your shoes, we wouldn’t think of this as a one-off purchase. We’d think of it as the first step on a ladder.

From that angle, an EC can make sense as a first asset. The resale value of an EC often moves you closer to mass-market condo prices, in a way that something like a 2-room flat can’t. We’re not saying that’s a guarantee, but it’s the more probable outcome, and one that’s been used by many home owners over the decades. 

Not everyone can buy an EC. If you qualify, take advantage of the fact that the entry price is below comparable private condos. The next step could be upgrading to a private condo later, or eventually moving towards owning two separate properties.

However, the EC route assumes you stay eligible and are okay holding the property for a longer stretch. 

If flexibility and being less leveraged matter more, the resale HDB route is still a perfectly sensible alternative.

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