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It sounds like a paradox, but is not as straightforward as it sounds. Compared to their HDB peers, it is actually very possible for a condo owner to
(1) live in a better environment and
(2) have LOWER financial burden than buying HDB
(3) end up with an extra 1-3 million dollars for retirement year down the road

This is because of various government policies in place around HDB and private property. Because many Singaporeans can actually achieve most, if not all 3 of the things I mentioned above by opting to get a condo instead of a HDB, they choose to buy a condo.

I'm a Harvard graduated real estate agent with a degree in economics, and I have a decade of experience working on Singapore public policy.
Happy to have a deeper conversation with you to explain what is going on in Singapore's property market, which has created this situation.

Feel free to reach out via my contact below and let's connect!

Kay Cloud
The Harvard Educated Agent
Propnex Realty Pte Ltd
cloud@propnex.com
Tel: (+6.5.) 8.5.6.7.4.5.8.5
Whatsapp -> https://wa.me/6585674585 Read More

Hi,

There are always different viewpoints on this and it can be subjective to some extent, so I will just share some points which makes a private property more appealing versus hdb

HDB policies are more restrictive and can be subject to change anytime. For example you can only rent out your HDB after staying for 5 years MOP. Or the sale and purchase involves various eligibility conditions which the buyer has to fulfill before you can sell it to them. There are also more restrictive borrowing policies where only 30% of income (mortgage servicing ratio) can be recognized for loan assessment. These regulations can change anytime as HDB, as a general principle, has to have affordability in mind for the general populace. We have already seen MOP of 10 years being introduced, and clawback subsidies for future sales of prime or plus flats, so as to keep new flats in prime areas affordable. Nobody can be certain if they may be introduced to hdb resale market in the future. So if you are coming in with an investment mindset for the property, private property may be relatively more appealing with lesser regulations.

Only private property can tap on equity or term loan, meaning you can use it as a collateral to unlock a sum from your property. This is especially helpful when you go towards retirement and find that you need a sum for example, medical expenses, living expenses or to support your kids in some way. For HDB the only way to monetize the property is to sell or rent out the unit or do a lease buyback option by selling the balance lease to hdb and lose our the option to will to their children, so it is not ideal.

Some owners also prefer to own freehold property for legacy purposes, so only private property have this option.

So there could be a certain group of buyers who will lean towards private property more due to above reasons.

Just my 2 cents and some of the points that come to mind.

Hope the above clarifies. I am well-versed with HDB and private property transactions, having helped more than 100 homeowners transit smoothly with their housing plans. Please reach out to me at 97432395  for a more in-depth discussion :)

May I have more info on your requirements so as to make better recommendations? Thanks and looking forward to chat more

Warm Regards,

Ivan Ng Realtor
ERA Senior Marketing Director
ERA Multiple Diamond Award Achiever

SEAA Salesperson Achievement Award (Gold)
SEAA Singapore Accredited Mortgage Planner (SAMP)

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SMU BBM (Finance), Magna Cum Laude
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We were fortunate to have met Ivan Ng. He was thorough in going through what the complicated home-selling process required of us and more so in understanding what we would like to achieve from the sale of our unit. His responsiveness and assurance, was a trait that we really appreciate. We managed to secure a sale that exceeded our expectation with Ivan’s advises. The offered price for our unit was a record set for the flats in the neighborhood. This was definitely supported by the fact that Ivan’s listing of our unit was detailed and stood out from other listings. Because of this, we also engaged Ivan's service to help us search and buy our new resale home. After some searches and viewings, we managed to secure one at a reasonable price with his help. With Ivan’s cheery and positive demeanour, selling our unit Read More

The difference will be upon your exit of this property, how does it affect your retirement. Some people is not about status when they purchase private homes directly beside public housing. They are planning for their eventual retirement and even legacy when the assets are left behind for their children.

Every housing loan takes about 30 years to complete servicing maximum, so if you look at 30 years later, if you are able to hold on to an asset that is worth say $4m fully paid versus holding on to an asset worth $1m fully paid, which puts you in a better position?

Of course, the journey towards this 30 years can mean a huge difference to your lifestyle, so at the end of the day, is it the tangible or non-tangible aspects of live that matters more to you. Read More