While most modern HDB flats nowadays are more or less your run-of-the-mill, cookie cutter type of flats with roughly the same type of layout and orientation, there’s also a small segment of the HDB resale market that belongs to a very different breed of home━the HDB terrace house.
And before you immediately assume that these terrace houses come with 7-figure price tags, hold up. You’d be surprised to know that they are actually much more affordable than you think. In fact, they actually cost less than what you’d pay for a modern 3-room BTO flat these days.
What are HDB terrace houses?
Image credit: PropertyGuru
Built by the Singapore Improvement Trust (SIT), AKA the predecessor of HDB, these HDB terrace houses are essentially two-storey HDB units with a small yard, akin to private landed properties but tied to a 99-year lease, and subject to HDB rules.
For example, owners of private landed properties have the freedom to completely demolish their home and build a completely new one in its place, but those in HDB terrace houses do not have the liberty to do so.
What makes these homes unique? Well, these properties are distinctive for their ground-level access, private gardens, and unique status as landed homes managed by HDB, and are found mainly in older residential estates areas like Queenstown and Whampoa.
Terrace house that’s cheaper than a 3-room BTO
While most of us would naturally be inclined to think that these terrace houses would be rather costly simply by virtue of them being landed properties, you’d be surprised to know that there are, in fact, some pretty affordable options available on the market right now.
Image credit: PropertyGuru
For example, this listing for 39 Jalan Bahagia has the house advertised for $880,000. Spanning 896sqft, this is a quaint 2-bed 1-bath terrace house in the Whampoa neighbourhood, bordering the likes of Toa Payoh, Novena, and Balestier.
There are almost no fixtures throughout the house, offering potential buyers the opportunity to do with it whatever they will, without having to do too much heavy reno. Then comes the fine print: the unit was released in 1972, which would put its remaining lease at approximately 45 years.
Image credit: Reddit
While it’s not within easy walking distance to an MRT station, there are some convenient alternatives. As a Redditor shares, there are plenty of bus services which will bring you to multiple MRT lines, and if you drive, then connectivity will certainly be a breeze given that the CTE and PIE highways are more or less at your doorstep.
At $880k, it’s also cheaper than most modern 3-room BTO flats, especially if you’re comparing to the likes of those found in Bidadari and Dawson estates.
Image credit: PropertyGuru
Take for example this 3-room HDB flat located at Bidadari Park Drive. If you’re familiar with property news as of late, you’d recognise that Bidadari Park Drive has established itself as being one of the addresses in Singapore that has seen million-dollar 3-room HDB flats listed in recent times.
Given that the majority of 3-room flats in Bidadari now start from $900k, then the $880k terrace house at Jalan Bahagia, which is larger than the under-800sqft of 3-room HDB flats, begins to look all the more attractive.
You might have to give up notions of high-rise living, and the accompanying breezes and views, but you also get a bigger space, and a front yard, AKA landed living perks.
Image credit: PropertyGuru
Apart from Bidadari, Dawson Road in Queenstown is yet another address that’s made the news for million-dollar HDBs. Here, prices for 3-room flats range around the mid- to high-$900,000s, such as this one at 94 Dawson Road.
Exceptions to the rule
Image credit: MustShareNews
Now, one important caveat to bear in mind is that not all terrace houses are dirt-cheap. In fact, in August last year, a HDB terrace house located at 53 Jalan Ma’mor in Whampoa was sold for an eye-watering price of $1.568m, which made it not only the most expensive HDB terrace and most expensive 3-room HDB flat in Singapore then, but also the most expensive HDB property ever to be sold in the Kallang area.
The good news is that 53 Jalan Ma’mor was the exception to the rule, and as mentioned above, there are current HDB terrace listings to be found under the $1m mark.
Risks of buying an HDB terrace flat
Image credit: AsianPrime Properties
Now that’s a very subjective question, because it will largely depend on your lifestyle needs and preferences.
On one hand, these terrace houses tend to be rather small, with most of them being either just 2-bedder or 3-bedder units. Because of this, if you have a large household to accommodate, you might find space to be a little constrained. However, if you’re just a DINK couple, or have just one kid, then it might be cosy enough for your family to live in.
Another plus point of terrace houses is the front yard that you get. Many homeowners of HDB terrace houses have creatively used these spaces to suit their lifestyles, such as making it into an outdoor meditation spot, or even an alfresco dining area, which you certainly won’t get in a high-rise flat.
Of course, the age of these properties are a key consideration. You have to remember that these houses were built in the 60s and reached completion in the 70s, so they are pretty old. Depending on how the previous owners have maintained the houses, you might have to pour in a good deal of money for considerable renovation and/or repair works.
The other elephant in the room is lease decay. To date, no HDB development has ever run the course of its 99-year lease, though there are the Voluntary Early Redevelopment Scheme (VERS) and Selective En-Bloc Redevelopment Scheme (SERS), of which the government has said there will be no more of the latter.
VERS has not been rolled out as yet, so details are still scant on how that and its accompanying payout scheme will work. Even so, it’s possible that your home might simply be repossessed by the government at the end of its lease, with zero value left.
Thus, there’s an added risk that you might not be able to sell your HDB terrace down the line.
That said, HDB terrace houses do offer owners the opportunity to be a part of Singapore’s heritage, since you’ll be living in homes that are relics from the past, with an old world charm that some would adore. Ultimately, whether or not these are worthwhile purchases is highly subjective, as long as you have weighed your options and risks.
For more content:
- Minimalist Kirigami-inspired 7-storey landed home
- Cottage-inspired HDB terrace house in Kallang
- Historic mansions in SG that are now condo clubhouses
Cover image adapted from: PropertyGuru
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