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Should You Sell Your HDB flat in 2022?

sell-your-hdb

Happy 2022 to all my readers and supporters!

At Youhome.sg, I have experienced a fulfilling year of opportunities along with the winds of change – with me adapting to new ways we service and provide consultations to my clients and finding a great new balance among it!

hdb-prices-2022

Looking at the price index for the past two years, HDB price increase slightly more than 17% from 2020 to 2022.

2022 bodes a fresh new start for all, and this too is reflected in many exciting property trends. The industry as a whole is anticipating:

  • Property demand to pick up with overall macroeconomic recovery post-COVID

  • Diminishing supply of new projects and land could keep prices high

  • Improvements to HDB resale market

  • And more…

If you are a homeowner or property investor who put a hold on your plans in the past, now is the time to plan ahead and decide if there’s an opportunity to make a change!

To help you focus your efforts, I’ve consolidated the considerations for 3 common groups of property buyers and/or sellers:

  1. HDB reach (MOP): To Sell or Not To Sell?


  2. Upgrading Plans: Bigger HDB Resale or Private Property?


  3. Down-sizing Plans: Can Downsizing Help to Reduce Financial Commitments?

Feel free to skip ahead to which section is relevant to you!

Property agent review - What my clients say about me

Mr Ang
Mr Ang
Buyer of Parc Riviera
Read More
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
Read More
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
Read More
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
Read More
His service is beyond my expectations. Always going the extra miles to serve his clients.
Ms Jo
Ms Jo
Buyer of Blk 452a Sengkang
Read More
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
Read More
"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
Read More
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
Read More
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
Read More
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
Read More
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
Read More
"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
Read More
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
Read More
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
Read More
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
Read More
"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
Read More
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
Read More
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
Read More
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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Table of Contents

1. HDB reach (MOP): To Sell or Not to Sell?

If you have a BTO that is approaching the end of the much-awaited 5-year minimum occupation period a.k.a MOP, you might have heard from your friends or family urging you to sell the flat quickly before the prices dip.

Worried? Before you make a rash decision based on hearsay, let’s look at some numbers to help you decide:

Please take note of the following: Only properties within the age group indicated during the time frame are used in the study.

For example: For an 11 – 20 years study, if a HDB is 20 year old in 2016, it is excluded from the study in 2017 when it reaches 21 year old.

Here is a case study based on the resale price index of Bukit Merah HDB flats in four different age brackets –

  1. 4 to 10 year-0ld (just after MOP period);

     

  2. 11 to 20 year-old;

     

  3. 21 to 30 year-old; and

     

  4. 31 to 40 year-old

Let’s look at how these different groups perform during the past 5 year trends

bukit-merah-hdb-price-4-to-10

The growth rate for Bukit Merah HDB flats from 4 to 10 year-old

What you need to know – 5.05% growth per annum averagely. (This is above CPF accrued interest rate)

bukit-merah-price-hdb-11-to-20

The growth rate for Bukit Merah HDB flats from 11 to 20 year-old

 

What you need to know – 2.18% growth per annum averagely. (This is below CPF accrued interest rate)

bukit-merah-price-21-to-30

The growth rate for Bukit merah HDB flats from 21 to 30 year-old

 

What you need to know – 1.78% growth per annum averagely. (This is below CPF accrued interest rate)

hdb-price-31-to-40

The growth rate for Bukit Merah HDB flats 31 to 40 year-old

 

What you need to know – 0.82% growth per annum averagely. (This is below CPF accrued interest rate)

Here’s what the numbers show:

  • For flats sold (4 to 10 years age), the median price shows an appreciation of 5.05% per year.

     

  • In contrast, for flats that is sold after 11 years old, the median price show appreciation of below CPF accrued interest of 2.5% per year.

Question! Why is appreciation below CPF accrued interest important to you?

cpf-accured-interest-point-zero

The reason is because HDB Negative sales happen when the selling price of a flat is lesser than the outstanding loan and CPF with accrued interest combined.

 

Read more about CPF accrued interest.

singaporepropertyagent

“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!

Shawn

Buyer - Riverfront residences

Conclusion

Prices do depreciate as the flat ages – but not immediately after MOP – so there is definitely enough time for you to do your necessary research and to prepare for a move within the immediate year or two after MOP.

Prices do depreciate as the flat ages – but it will not be immediately after MOP – so there is definitely enough time for you to do your necessary research and to prepare for the move within the immediate year or two after MOP.

 

If you delay a sale and your flat’s price depreciates, you will end up with much lesser cash proceeds (that can be used for your next purchase).

 

In some cases, we have seen a difference of up to $100,000 reduction in profits just because of a delay in sales.

So, don’t let yourself make this mistake!

2. Upgrading Plans: Bigger HDB Resale or Private Property?

a) Upgrading for more space

Are you working from home a lot more since the new normal and need more space to avoid distractions while at work? Or have you since welcomed a new addition to the family?

If so, 2022 may be a good year to consider upgrading to a larger space at home with more space for everyone!


With a relatively strong HDB resale market, it is most definitely a good sign to sell and lock in the cash profits to channel into either an older and bigger HDB resale or private property.

b) Upgrading for investment

Looking to upgrade for investment and capital appreciation?

Let’s take a look at how different categories have been performing for the past 5 years.

hdb-overall-price
EC-price
private-prices
landed-housing-price

Comparing the 5-year price trends different between HDB, EC, Private (non-landed) and landed:

 

HDB overall performs the lowest compared to the rest.

2022 may be a good year to consider upgrading or property wealth planning

3. Down-sizing Plans: Can Downsizing Help to Reduce Financial Commitments?

With the pandemic wreaking havoc on the economy, it is inevitable that many have their livelihood significantly impacted.

If your livelihood has been affected, and you are looking for ways to reduce your financial commitment or even unlocking potential proceeds from your home, downsizing can be a possible option for you.

If you are a property investor who is seeing less than optimal returns on your property portfolio due to the economic downturn, and hope to reduce your monthly mortgages, it might be helpful to look at restructuring your property portfolio.

 

While it may be a difficult decision to make, downsizing is definitely an effective way to help reduce financial commitments in the long-term.

 

With the right professional guidance and help you navigate around taxes, fees and any other hidden costs, downsizing can be a smooth and painless process for you.

Selling and buying HDB at the same time

A joint effort by HDB and the CPF board, it allows sellers to sell their existing HDB flat and concurrently buy another HDB resale flat using the proceeds (as well as the refunded CPF monies).

 

For HDB owners that are considering selling and buying hdb at the same time, you can consider using hdb contra. (read more to find out)

Selling HDB flat Calculator

Many homeowners, contacted me for my Dynamic Property Report too and Sell their house at a HIGHER price than valuation.

Still Undecided About Selling Your HDB in 2022?

hdb-cooling-measures

Recent articles also touched on potential cooling measures.

 

So, if you are still thinking about whether or not to sell your property, this might be a good time for you to consider letting it off before further intervention of cooling measures.

 

Who knows? This might be a golden opportunity, not to be missed!

 

In all, the nature of selling property is understandably complex and different depending on each individual needs.

This is why we hope this article helped to shed some light on possible opportunities and options for you if you find yourself in any of the above 3 situations!

Bonus for my readers

property agent career change

A Warm Hello From Your Property Consultant

Hey, I’m Rick! A property consultant and your host for this one-time sharing session.

 

While I wholeheartedly admit that I hope to be engaged and be part of your property journey, I also need you to know that, like you…

I don’t like sales pitches and being forced into selling and buying

 

I am looking forward to working with down to earth people

 

Looking forward to a happy property journey

And, by saying happy property journey, i mean...

Turning a client/service relationship into a long term friendship

 

So, if you have been looking for a trustworthy and honest realtor to begin with, this sharing session just might be the start of your property journey.

Applying is simple!

  1. Click the SCHEDULE button

  2. Allow me 30min of your time

  3. To go from having questions in your mind to understanding the options available

See you soon!

property-agent-testimonial

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

Jo & Jeffery

Buyer - Blk 452a Sengkang

Property agent review - What my clients say about me

Mr Ang
Mr Ang
Buyer of Parc Riviera
Read More
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
Read More
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
Read More
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
Read More
His service is beyond my expectations. Always going the extra miles to serve his clients.
Ms Jo
Ms Jo
Buyer of Blk 452a Sengkang
Read More
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
Read More
"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
Read More
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
Read More
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
Read More
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
Read More
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
Read More
"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
Read More
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
Read More
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
Read More
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
Read More
"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
Read More
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
Read More
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
Read More
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

blog-pic

Rick Huang, Associate Division Director of Huttons Asia Pte Ltd, has been in the Real Estate industry for more than a decade.

He is driven, committed and is enthusiastic about real estate investments.

Today, he leads Team Youhome.sg, and together, he aims to provide his clients with the best experience in their property journey.

The team focuses on understanding the client’s finances and needs and is determined about delivering the best solutions and results for them.

Amidst the hustle and bustle, Rick enjoys quiet time and indulges himself in the intricate art of tea-brewing and teapot appreciation.

He would also take this chance to energize himself and reflect on his personal development and areas of improvement.

He is also a proud fur daddy to 2 rescue kitties and loves spending his free time with his wife and furbabies.

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)

Should you sell your MOP HDB after 5 years? – Read more (Selling HDB after mop)

Property Wealth Planning – Read more (What is property wealth planning?)

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