Sell Hdb Buy Condo - A Comprehensive Guide and Case Study

HDB price had increased more than 33% since 2020 to 2024

Property prices have risen since Covid, including HDB. During this period, I have been fortunate to stay busy, with clients showing interest in upgrading from HDB flats to private properties.

Many HDBs are nearing their Minimum Occupation Period (MOP) from 2024 to 2025.

Does this situation apply to you as well? To provide valuable insights, I will share important considerations and a client case study on a successful Condo upgrade.

Are you eligible?

If you already own an existing flat, you will only be allowed to sell your current flat if you have completed the MOP duration on your current property.

This is HDB’s rule, so do make sure to check this out first before you happily plan your upgrade.

Most BTOs and DBSS have an MOP of 5 years. But the exact MOP for different types of flats bought under different schemes can be different.

If you are not certain, please head over to the HDB site to check the exact details here.

A New Home or Investment?

When considering an upgrade from HDB to Condo, it’s crucial to ask yourself key questions. Why the upgrade? Is it for location, convenience, family, or investment?

Understanding your motivations is essential for tailored solutions.

Be upfront about your needs to explore the best options.

Affordability check for buying a Condo

It is important to work out the details of your potential sale and cash proceeds to know if you can afford the upgrading cost.

Figure out if you require any cash top up for your next purchase or if you can utilize CPF.

Work out these numbers or let me help you figure your finances out to make sure you have what you need.

If everything is in place, you can decide if you would like to buy first or sell first.

This impacts your finances significantly as well.

If you are buying first, it would be considered a second property and you would be subject to “Second Housing Loan” terms for your Loan-to Value (LTV)) and cash down payment.

So do make sure you plan ahead, to prevent being saddled with these additional costs just because you buy first.

And last but not least, a simple thing to note is that your current flat is being financed on a HDB loan, you will need to switch to a bank loan.

So start looking out for good rates from the banks too.

Accommodation plans during transition

This is one operational aspect of the upgrading journey that people tend to overlook in their excitement.

To avoid being stranded, always make sure to check if you have a place to stay during the transition or if you require any HDB extension.

The typical timeline after concluding a deal with an interested buyer for HDB resale is usually 8-10 weeks after the HDB resale application is submitted on both ends.

Comparing that with the timeline of a resale condo which is usually 10 – 12 weeks, and a new launch condo which has different TOP dates, you need to work out accommodation plans during the transition.

HDB resale process

Selling your HDB flat is a significant step in the upgrading process, and it involves a structured procedure to ensure everything goes smoothly.

Once you have decided to sell your hdb flat, you must first register Intent to Sell on the HDB Resale Portal (my flat dashboard).

This step is crucial as it gives you an overview of the eligibility conditions and procedures.

Next, you’ll need to determine your selling price. This can be done through market research or by engaging a property agent who has a good grasp of the current market conditions in your area.

After settling on a price, you can start marketing your flat. This involves listing it on property websites and social media for potential buyers.

Once you’ve found a potential buyer and agreed on the price, the next step is to grant an Option to Purchase (OTP) to the buyer in exchange for an option fee.

The buyers will then have 21 days to decide whether to proceed with the purchase. If they choose to proceed, they will pay a deposit to you, and both parties will then prepare resale documents to submit resale application through hdb flat portal online.

Both parties will endorse documents through my flat dashboard.

Prior to the completion appointment date, make sure all necessary documents are in order.

On the day of the appointment, the resale transaction is completed with the signing of documents and payment of the balance purchase price. Following this, the keys are handed over to the buyer.

Important notes: The resale procedure involves several steps and requires careful planning and coordination.

It’s advisable to check the latest guidelines on the website or consult a professional to ensure you comply with all regulations and procedures.

Case Study: Helping Mr. Shawn Upgrade from 4-Room HDB to a Condo

Assisting a client, Mr. Shawn, in upgrading from his MOP flat to a new launch Condo in 2020 was a rewarding experience.

A month before his 4-room Punggol flat reached MOP, Mr. Shawn proactively explored his options.

Upon confirming his eligibility and understanding his investment objectives, which include seeking a property with appreciation potential, preferring a low-risk approach, and desiring an enhanced lifestyle for his family, we identified a development with promising capital gain potential and stunning landscaping.

And YES! We did it after proper timeline planning. Mr Shawn and family bought Riverfront Residences after selling their punggol flat.

And the average psf of the development has increased by over 25% since 2020.

Mr. Shawn and his family didn’t spend any of their savings on the purchase, using cash proceeds and CPF from the sale of their Punggol flat for all upgrading costs.

The Price Gap Between Condo and HDB Is Widening

It’s important to understand that HDBs were never intended as an investment.

The government wants to ensure that HDB prices remain affordable, which means they won’t increase too much.

If you look at the comparison graph between HDBs and private properties, you’ll notice that the price gap has grown wider in the past decade.

Currently, HDB prices are likely at their highest point, so it might be a good time to consider selling and using the proceeds to upgrade to something better.

Is Upgrading to a Condo Worth It?

Upgrading from an HDB flat to a condominium involves more than just finances – it’s a lifestyle choice with perks and responsibilities.

Condos offer amenities like pools, gyms, and security, enhancing living experiences and well-being.

Financially, condos promise better appreciation over time compared to HDB flats, making them appealing for real estate investors.

Deciding to upgrade depends on finances, lifestyle, and goals. Consider pros and cons, market trends, and personal readiness to make an informed choice.

Factors to Consider When Selling HDB to Upgrade to a Condo

Financial Readiness

Current Financial Standings: Assess savings, CPF funds, monthly income, safety margins, flat type and eligibility for financing.
Costs Involved: Consider the cost of selling your HDB, including agent fees, and the purchase costs of the condo, such as down payment, stamp duties, and legal fees.
Loan Eligibility: Verify eligibility for bank loans and understand the terms, like the Loan-to-Value (LTV) ratio.

Timing

Market Conditions: Keep an eye on the real estate market trends to choose an opportune time to sell for a good price and buy at a reasonable price.
Personal Timing: Align with personal or family milestones, ensuring minimal disruption to family or work life.

Lifestyle Change

Amenities and Facilities: Compare the lifestyle changes, focusing on the amenities and facilities a condo offers over your current HDB.
Maintenance & Other Fees: Be prepared for the monthly condo maintenance fees and other potential levies.

Location and Size

Location Suitability: Evaluate the location for convenience, such as proximity to work, schools, and amenities.
Downsize or Upsize: Decide whether the move is to downsize for financial efficiency or upsize for more space, considering future family plans.

Investment Potential

Appreciation Potential: Consider the potential long-term appreciation of the condo for investment purposes.
Rental Yield: If planning to rent out, assess the area’s rental demand and potential yields.

Regulatory Considerations

Seller’s Stamp Duty (SSD): Be aware of any applicable Seller’s Stamp Duty (SSD) if you sell your HDB flat within a certain timeframe.
Minimum Occupation Period (MOP): Ensure that the MOP for your HDB flat is fulfilled before selling.

Financial capacity, market timing, lifestyle preferences, and long-term investment potential all play critical roles in this major life choice.

Are You Ready To Explore Upgrading to Condo?

Having considered the various factors, does it sound like the right opportunity for you?

Bonus invitation for my readers

Understanding the importance of transitioning from an HDB flat to a condo in Singapore is crucial.

This decision could be life-changing and presents an opportunity to own an appreciating asset. Ready to start the journey from upgrading your HDB flat to a condo?

Discover how many sellers utilize funds from their flat’s sale for their next home or investment.

Who should apply?

Individuals or families who currently own an HDB flat in Singapore
Those who are looking for a more luxurious and convenient lifestyle
People who are interested in the Singapore property market and want to make a smart investment decision
Those who are looking to upgrade their living space and have the financial means to do so
Potential homebuyers who want to learn more about the benefits of living in a condo and the process of upgrading from an HDB flat.

Questions and Answers

Q1) What are the main benefits of upgrading from an HDB flat to a condo?

Answer: Some of the main benefits include access to better facilities, more living space, and the potential for a higher resale value.

Q2) Is it worth upgrading to a condo if I’m on a tight budget?

Answer: It depends on your individual financial situation. Upgrading to a condo can be more expensive than staying in an HDB flat, but it can also provide you with a more comfortable and convenient lifestyle. It’s important to weigh the costs and benefits and work with a financial advisor to determine if upgrading is the right choice for you.

Q3) Can you assist me in finding my dream home, and do I have to commit to working with you after our initial discussion?

Answer: Of course! Having an initial discussion is a great starting point, and there is absolutely no obligation to work with me after that.

Awards and Accolades

Testimonials

I have successfully helped hundreds of homeowners just like you since 2010

Self Introduction

Hi, I’m Rick Long

With decades of experience in Singapore’s real estate market, I’ve had the privilege of being mentioned in media outlets such as Channel NewsAsia, The Straits Times, and 99.co.

Over the years, I’ve written extensively on the local property landscape — tackling the real questions buyers and sellers face, and helping them navigate each step with greater clarity and confidence.

Many of my clients have become long-time friends — their trust and kind reviews continue to inspire me to raise the bar in everything I do.

I believe real estate should be strategic, seamless, and deeply aligned with your life’s journey.

Ever wonder if you are suitable for Sell one buy two investment concept? – Read more (Sell one buy two)

Is buying new launch or resale condo have better returns? – Read more (New Launch vs Resale condo)

Looking to upgrade from Hdb to condo? – Read more (Sell Hdb buy condo)

What to take note when selling Hdb resale flat? – Read more (Hdb Resale Process)

Buying another Hdb flat, and using the fund from current home? – Read more (Hdb contra)

Why do some Hdb flat price depreciate so much? – Read more (Hdb depreciation curve)

What is one of the most common reason for property negative sales? – Read more (Cpf accrued interest)

Financial calculation for selling a Hdb flat? – Read more (Hdb resale calculator)

Buying EC before selling your HDB? – Read more (Upgrade to EC before selling your HDB)

Should you sell your EC after 5 years? – Read more (Selling EC)