6 Answers

askguru expert
Hi there, thanks for writing to us on AskGuru.

It depends on your investment objective if it is for own occupation, capital appreciation or rental income.

Generally, a freehold private property is better from an investment point of view as HDB flats diminish in value as they reach the end of their leases. This is true as seen in the mature estates of Toa Payoh.

From a rental perspective, HDB flats generally have a higher rental yield due to their relatively affordable entry price.

If your goal is for capital appreciation, you can consider investing in a private property. Like buying a resale HDB flat, you will be subjected to the Valuation Limit and Withdrawal Limit as well as the Total Debt Service Ratio (TDSR). You may refer to the MAS's link here: https://www.mas.gov.sg/regulation/explainers/tdsr-for-property-loans/calculating-tdsr

Due to the higher purchase price, the rental yield for condominium tends to be much lower compared to an HDB flat. If you can attain a rental yield of at least 5%, this is considered good taking into consideration the current market condition.

Before taking the plunge, we advise you to engage a good agent who will be able to do a detailed financial calculation for you as you will need to set aside a Basic Retirement Sum of $90,500 and is subjected to the limits when using your CPF as highlighted above.

Hope this answers your question.

Best Regards,

Team PropertyGuru Read More


Aaron Chong
Hi, I would be most glad to assist you further and pls feel free to let me know if you need any assistance. Hope to hear from you soon and have a great week ahead. By the way, moving forward a HDB flat is no longer deem as an investment but just a roof over our head.

Aaron Chong
9730 8455
aaronchong2774@yahoo.com.sg Read More


Ivan Ng

Generally the trend appears to be older resale hdb prices are starting to gradually decrease along with age and recent government policies to keep resale prices affordable. It is unlikely that older hdb prices at outer areas such as Yishun will appreciate further as more supply of newer MOP BTOs come into the market in the future and more are opting for newer hdbs as they become more concerned about the balance lease issue.

It could be an good window to cash out the proceeds now and recycle them into a private property that is zoned in a growth area and at an area that you are comfortable with. It helps to build your wealth while capitalizing on the change as the area transforms further and appreciate in tandem with the transformation plans.

I have worked on various similar cases and would be happy to share the best approach based on your requirements. May I have more info and requirements about your plans so to make better recommendations? Thanks and look forward to value-add to your housing plans.

Warm Regards,

Ivan Ng Realtor
ERA Senior Marketing Director
ERA Diamond Achiever

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-- EC Sellers, Private Property Buyers Dr. Chan & Ms. Xie --

I would like to compliment Mr Ivan Ng for his professional work and effort.I sent my first post in Jan 2019 and Ivan replied promptly, so I have decided to contact Ivan for follow up. My EC was not ready for sale due to MOP (another 3 months from Jan) at that time and Ivan was able to give me advices on how to proceed from there. Initially we have decided to try to write to HDB for early sale but since it was only 3 months left, eventually we waited for another 3 months while we looked for our next property. Ivan was able to arrange for new property showroom appointment at a timely manner while helping us to list for our EC for sale. We were a bit worried when our EC sale time was longer than expected due to trade war, but Ivan was able to reassure us that our EC would sell. By November, he managed to secure a buyer for our EC. Thank you.

-- HDB Yishun BTO 5-RM Sellers, Private Property Upgraders Mr. & Mrs. Koh --

I would like to express my appreciation to Ivan Ng for his excellent work. Ivan is a dedicated, client-focused, patient and sincere agent. Throughout the whole process of selling and looking for our next property, he has always acted very professionally that makes my wife and I feel at ease and assured. Ivan is not a pushy and hard sales agent. Ivan listens and understands our needs and carefully guided us through. We are fortunate to have Ivan as our agent. Thank you Ivan. Read More


Nick Tan
Dear Sir/Mdm,

A lot of my clients faced the same dilemma with you and are undecided between selling or retaining their HDB. It will be good if you can review the situation from the overall HDB price trend and data perspective.

Please feel free to contact me so that I can show you the charts and figures so that you can have a better understanding before making an informed decision.

Nick Tan
(M) +65 9644 4854
B.Eng(Chemical)(Hons)(NUS) / Cert-in-REA
(E) nick96444854@gmail.com
SEAA Salespersons Achievement Platinum Award 2020
Visit my website to get to know me better:
I was featured recently on Council for Estate Agencies (CEA) Newsletter:

Testimonial from Satisfied Clients
“I would like to recommend Nick Tan from SRI. Before we engaged Nick, we were working with another agent from a very popular property agency in February 2017. We decided to terminate the contract after 5 weeks of zero viewings and no paper advertisements. Basically he was just waiting for phone calls. We engaged Nick on 20th April and by 10th of May, our unit was sold off. Why Nick? 1. He has good marketing strategies 2. He always kept us posted on what he did (communications!) 3. He made sure we understand the current market situation but he will consistently reassure us that the unit can be sold off 4. He is not greedy and trusting 5. He walks the talk”
Peter & Wendy (Property Seller)

I write to commend Nick Tan (R040814C). When my husband and I first met Nick, we were impressed by his drive, commitment, business acumen and strategical thinking, and decided to engage him. We were not disappointed. Nick sourced for prospective quality buyers in a targeted methodical fashion and was effective in connecting us with serious buyers, notwithstanding the fact that the search primarily took place over Dec – Feb (a traditional lull period). Throughout the transaction, he also gave us helpful advice in various aspects; the advice reflected his personal experience and expertise and was not simply regurgitated from public sources without any value-add. Further, Nick went beyond the call of duty of a competent professional. He had a sense of humanity in the way he interacted with myself and the other parties to the transaction such as my parents. As an example, my newborn daughter was warded into A&E on the completion date of the transaction; the care and concern that Nick showed went beyond the scope of work of an estate agent. I commend Nick for his capabilities and character, and would certainly wish to engage him for future property transactions.
Weilun & Benita (Property Seller)

“We are very grateful to Nick for his extensive marketing efforts. With his comprehensive marketing plan, he helped us to achieve a record selling price within 2 weeks of listing our property for sale! We highly recommend his service to anyone who is keen to sell their properties.”
Mr & Mrs Wong (Property Seller)

“Nick has conducted himself ethically and professionally when handling the sales of our property. Thanks to his patience and perseverance, we managed to secure a sales price beyond our expectations. We are very happy and satisfied with his services and will definitely recommend him to our friends and family in the future.”
Mr & Mrs Tan (Seller of Inter-Terrace House)

“Nick provides a delightful customer experience from day one when I engage him as my agent to look for a flat of my choice to the completion of the deal. He is competent, resourceful and has a pleasant manner to work with. He is the Agent of my choice in dealing with properties and I would highly recommend him to others who would appreciate an agent that takes care and can give the customer a peaceful mind.”
Susana (Buyer)
“Nick is very pro-active in helping us to resolve whatever questions and problems that we encountered. All the issues are settled even before us having to request or ask for a second time. He was very frank and transparent with all the Read More


Silvia Yang
Hi Sir/Madam

I will need more information to be able to advise you
I won't be able to contact you first as I do not have your contact, appreciate if you can contact me at (65) 96608508 or Silviayang8@gmail.com with details of your unit
or click here https://bit.ly/WaSilvia to whatsapp me for no obligation discussion
Thank you.

Warmest regards,

Silvia Yang

Senior Marketing Director
ERA Realty Network Pte Ltd
Mobile: (65) 9660 8508
Email: Silviayang8@gmail.com Read More


Ling CK

1) HDB flats were appreciated in the '80s & '90s where Singapore upgrade from 3rd World to 1st World. Thus property became an asset during that transition.
2) Average BTO built in the '90s was around 10,000/annual
3) Average BTO built in the '00s was around 4,000~6,000/annual
4) HDB flat had appreciated during 90's & 00's due to demand and supply off balance.
5) Since 2012, BTO built per annual is >20,000 till 2016. 2017 onwards, an average of 17,000 to 19,000 built per annual. This stabilized the resale market where you observed there were lesser COV cases. Also due to the new policy of later valuation after price negotiation unlike before.
6) HDB is only meant for SC & SPR couple. No foreigners are allowed to touch implying you won't see multi-millionaire coming in to raise the price in the near future unless there is a change of policy.
7) Rental yield is one of the main factors to justify the retention of the flat. However, you have to understand this is just a figure, quantum wise is still not raising.
8) According to Bala's curve the older the flat, the higher the depreciation.
9) With aging of any property, higher cost of maintenance is expected.

Thus your main question of whether there is a future appreciation.
By gathering all facts shall give you a clear idea on whether older HDB flat will appreciate further.

Hope the above answer to your main concerns, but if there are more query, please feel free to contact me at 90110636, or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.

Best regards
Ling CK

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