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Sell Hdb Buy Condo - A Comprehensive Guide and Case Study

sell hdb upgrade to condo

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

Why people upgrade from HDB to condo?

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.

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Table of Contents

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.

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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.

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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

hdb-upgrade-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.

Can I buy condo while selling HDB

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.

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The Price Gap Between Condo and HDB Is Widening

How much cash do you need to upgrade from HDB to condo
Source: From SRX

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?

  1. Individuals or families who currently own an HDB flat in Singapore
  2. Those who are looking for a more luxurious and convenient lifestyle
  3. People who are interested in the Singapore property market and want to make a smart investment decision
  4. Those who are looking to upgrade their living space and have the financial means to do so
  5. 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

Mr Ang
Mr Ang
Buyer of Parc Riviera
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As a investor interested in taking advantage of the booming property market in Singapore, I needed a realtor with in-depth knowledge of the local market. Using his understanding of the various sectors of the market, Rick generated a investment progression report and we decided to buy a condominium in a choice area with huge potential for multiple returns in the future. Thanks Rick, I will definitely be doing business with you for a long time!
Ms Claire
Ms Claire
Seller of Esparina Residences
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I am writing in to compliment Rick Huang for his invaluable service, for the sale of my Esparina Residences. The process was complicated but he was able to empathize with my situation and also provide brilliant advices that ensue the smooth transaction. In all, I am appreciative with his professionalism and human touch in this journey. Thank you!
Ms Ho
Ms Ho
Seller of Blk 272b Punggol
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I was sceptical about engaging a friend to sell our house. However, Rick has put himself out on so many levels just to ensure everything went smoothly, promptly and correctly at every stage. I trust Rick and would surely recommend him to anybody seeking to buy or sell a home! I do not usually post reviews but this is worth investing my time. Thanks once again..
Ms Malar
Ms Malar
Seller of Blk 332 Serangoon
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His service is beyond my expectations. Always going the extra miles to serve his clients.
Ms Jo
Ms Jo
Buyer of Blk 452a Sengkang
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My husband and I started our home-search by ourselves but was met with issues soon enough as we were unsure of the important things and areas to look out for and we were also not experienced in the negotiation process with the seller’s representing agent. Soon after hearing our problems, I was introduced to Rick by a friend. The entire buying process quickly became swift and smooth; Rick understands our needs, puts our personal interest first, seals us a good deal and educated us along the way about the important things and areas to pay attention to. Thumbs up to Rick and we will recommend him to anyone for their home-search
Mr Eddie
Mr Eddie
Seller of 127c Kim Tian
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"In short, Rick did an amazing job. He sold our house at a higher than initially discussed price and got us a good deal for our purchase. Both my wife and I are impressed with his professional yet friendly approach. We will definitely work with him again and recommend him to anyone."
Mr Liew
Mr Liew
Seller of 260c Punggol
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Rick is a very down to earth person. No hard sell or pushy technique. He helped us in planning for upgrade and showing us how to invest in property with in depth property analysis report.
Miss Chong
Miss Chong
Buyer of Regent Residences
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His service is superb. With his property mkt analysis skill, I managed to purchase my first property in Singapore. He is always patient and helpful whenever I have any query about property purchase procedure, especially the computation part of the downpayment. In nutshell, I am really grateful and appreciate for his support.
Selvi
Selvi
Buyer of Blk 130 Bishan
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Rick is an agent who has displayed his potential in his services. He provided us a very personalised guidance when we first approached him with an intention of purchasing a resale flat. With his knowledge and years of experience has made the entire purchasing process seamless. Thank you Rick for being a great friend and a fantastic agent!
Mr Mark
Mr Mark
Seller of Blk 686a Woodlands
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Rick service has a very personal touch. He was extremely patient and professional and does not rush us into making any decisions he provided us with sound advice whenever we have questions and was always ready to provide help with regards to any matter. What impress us the most was the extra step he went by assisting us with the purchase of our new home, even though this was in no way his responsibility to do so. Thank you for the hassle free experience Rick. Highly recommended
Mr Shawn
Mr Shawn
Buyer of Riverfront Residences
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"It was a pleasure working with Rick throughout my selling and upgrading journey. His recommendations and knowledge of financial calculations and preparations are impressive - even factoring in risk management specific to us, for the next 5 to 8 years. He has shown his expertise in real estate and guided us step by step all the way, making transactions effortless for us. Well done Rick!
Ms Shufen
Ms Shufen
Buyer of Cairnhill Crest
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Rick has been our go-to agent for our past few property transactions He actually patiently brought us to many various property viewings (I think it was more than 10!) before we finally settled on the Cairnhill unit. Rick also helped us iron out all the issues encountered along the way and we are very thankful for his service. Hence, we will continue to engage Rick for all our property related matters. We have encountered many agents throughout the years but Rick is the one that has the most profound display of professionalism, knowledge and dedication in his job. Please keep up the good work!"
Ms Meena
Ms Meena
Seller of Blk 475c Upper Serangoon
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Rick's guidance really helps us to sell our unit at a good rate. He did a excellent job giving us professional assistance from step by step till the keys are handed over to the new owner.
Mr Kingsley
Mr Kingsley
Seller of Blk 91 Tanglin
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We have worked with a few property agents. We find the interests of the agent are not well aligned with either the buyers or sellers as volume of transactions matter more. With Rick, you can be assured that your interests are well protected at all times. It is reassuring that he shares his opnion objectively to allow home buyers or home seekers to evaluate the decisions for themselves. Overall a smooth experience. Thanks Rick!
Ms Su
Ms Su
Seller of Blk 93 Paya Lebar Way
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"Rick was introduced by a close friend of mine. This is my second time buying a flat (first time was 20 years ago) and I have forgotten all the procedure. With no experience dealing with selling and buying, this is my honest testimonial. Rick is a very responsible agent which I've met so far. Fast response to all my enquiries and he answered to all my doubts which I have. Reliable and he knows exactly what to do and will give you his utmost advise and service. I highly reckon Rick to those have the intention of getting property agent. Thanks so much Rick for the help and assistance you have rendered from start until the end of transaction. I would definitely recommend you to my relatives and friends. Cheers
Shah
Shah
Seller of Blk 227a Compassvale
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My wife and I are grateful that a friend of ours referred us to Rick to help sell our unit. Rick responded fast to all of our queries. In fact, we managed to sell off the unit faster than we expected thanks to Rick. He did not even need to resort to cheesy gimmicks and marketing. The journey was kept professional. Despite the toxic culture of the property industry, we can feel that he is sincere and committed in helping us. He is trustworthy and we felt that we were in safe hands with Rick as our agent.
Ms Sharon
Ms Sharon
Seller of Blk 648 Ang Mo Kio
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I had in the past dealt with agents who were pushy and did not do their homework. But with Rick, I am put at ease with someone who is not only very knowledgeable but understanding. He keeps my family posted on what we need to know, is very diplomatic, tactful and professional. If you need your place sold, you need a reliable person like Rick to help you. Thanks Rick once again. Warmest Regards, Sharon Lim
Mr Sri
Mr Sri
Buyer of River Isles
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Rick was introduced to me by a friend, who has seen Rick while he was helping another client. Rick has played an exceptional role while I was buying a private property. He is patient, humble, polite and a nice human being. I highly recommend him if you are looking for an agent in your property hunting. I worked with several agents but he will be my go to agent for any future deals. It was excellent experience..!
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Self Introduction

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Greetings! My name is Rick Long, and I am proud to serve as the Associate Division Director of Huttons Asia Pte Ltd, with over a decade of experience in the real estate industry.

My passion for helping clients find their dream homes has grown exponentially during my tenure in the field. As a graduate of Singapore Polytechnic, I have always valued the importance of hard work and determination.

My prior experience serving in the airforce instilled in me the value of teamwork, perseverance, and discipline.

Over the years, I have been privileged to receive several accolades for providing exceptional service and dedication to my clients.

My ultimate goal is to ensure that each individual I work with has the best possible experience, whether they are buying or selling a property.

One of the most rewarding aspects of my work is receiving glowing five-star reviews from satisfied clients.

Knowing that I have positively impacted someone’s life is truly humbling, and it motivates me to continue striving for excellence every day.

When I am not working, I enjoy spending quality time with my loved ones, indulging my passion for sports, and exploring the rich and diverse culinary landscape of Singapore.

Amidst the bustling pace of life, I relish moments of calm by immersing myself in the art of tea-brewing and teapot appreciation.

Thank you for taking the time to learn a little more about me. I look forward to the opportunity to work with you.

Additionally, Rick is a proud fur daddy to two rescue kitties and loves spending his free time with his wife and furbabies. He believes in giving back to the community and volunteers his time to animal welfare causes whenever possible.

Related Articles:

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)

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