There comes a time in a homeowner’s life when they start considering an upgrade from their HDB flat to a condo. The reason: the fancy amenities and improved long-term investment value. However, while buying a condo comes with perks, the HDB to condo transition can be a complex process to digest with all its financial and legal considerations. To help prospective HDB upgraders, this guide will help you understand all the different steps involved to make your HDB to condo journey a smooth one.
Ensure your Minimum Occupation Period (MOP) is over
One of the first milestones you’ll need to meet before you upgrade to a condo is to ensure that your flat’s Minimum Occupation Period (MOP) is over. For most of the regular flats out there, this period is 5 years long, but if you were lucky enough to score a Premium Location Public Housing (PLH) flat, then your MOP would be 10 years. Be sure to check your HDB MOP eligibility by logging into the My HDBPage portal before you make the HDB to condo upgrade.
Selling your HDB flat
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For most HDB upgraders, the move to a condo usually requires funding from the sale of their HDB flat first—unless you’ve hit the jackpot of course. You can choose to sell your HDB before or after buying a condo, each with its own benefits and drawbacks. Before we get into that, here’s a quick guide on how to sell your HDB.
Registering your Intent to Sell
While listing your HDB on any property site is fairly straightforward, the first step you’ll need to take is registering your Intent to Sell on the HDB Resale Portal—this step is compulsory, and it’s also there to confirm your eligibility to sell. This has to be done by you, the owner of the house; your property agent cannot register on your behalf. This process is free of charge and once you’re done, your intent to sell remains valid for 12 months. If lady luck isn’t on your side, then you’ll need to re-register your Intent to Sell before relisting your property.
Selling your HDB flat with an agent
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The most hassle-free way to sell your HDB flat in Singapore is by engaging a licensed property agent, they’ll handle everything from listing your HDB unit, arranging viewings with prospective buyers and dealing with all the paperwork. They’ll also be able to negotiate the move-out-move-in dates between you and the homebuyers. As you would expect, hiring a property agent will mean you’ll be paying them a fee. Most agents charge a 2% commission on the final sale price, though this could be higher if you need to sell your HDB flat quickly due to time constraints.
Selling your HDB flat without an agent
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In recent times, a number of homeowners in Singapore are opting to sell their HDB flats on their own with no property agent to save a considerable sum on the commission fees. While this can be a smart cost-saving strategy, you’ll need to invest a fair amount of time and effort—it might also take slightly longer to sell your flat as property agents typically do their own marketing.
Once you’ve registered your intent to sell, the next step is to market your property and get the word out that your house is for sale. If your home’s condition is in a live-in condition with a modern interior, it’s likely to be snapped up faster as our eyes naturally gravitate towards aesthetics, plus, some buyers are looking for immediate livability.
Tip: If you’re hoping to maximise your home’s value, you might even want to have it styled for photo-taking purposes so that the home stands out and attracts buyers. Psychological studies suggest that well-presented homes are perceived as more valuable, potentially allowing you to command a higher selling price.
When you have accepted an offer, the next thing to do is to grant your buyer the Option-to-Purchase (OTP). You should also collect an Option Fee from them to ensure some form of commitment; the OTP is the only legally recognized contract for HDB resale transactions—WhatsApp messages or verbal agreements are not valid replacements.
Finalising the HDB Resale Transaction
If the buyer exercises the Option-to-Purchase (OTP) within 21 days, they must pay the Option Exercise Fee, which, combined with the initial Option Fee, cannot exceed $5,000. Things are smoother sailing from here. You and the buyer will have to submit the resale application documents to the HDB Resale Portal within 7 days of each other. So be sure to coordinate in case someone forgets and does an oopsie. Once HDB accepts the documents, you’ll have to get them endorsed and pay your resale fees.
Once HDB reviews and accepts the documents, you’ll need to endorse them and pay the resale fees. The application is typically approved within 2 weeks, and HDB will then schedule a key handover date within 8 weeks.
Last, you might want to consult a lawyer to assist with any legal issues or hire them to draft the necessary documents and contracts so the sale goes smoother.
Buying a condo unit
The second half of your HDB-to-condo upgrade is buying the condo unit. You have two main options: buy a condo before selling your HDB or sell your HDB first and then purchase a condo. Here are some of the most common scenarios when making the upgrade from an HDB to a condo:
Option A: Buying a condo before selling your HDB
Some HDB upgraders who are a little more kiasu might elect to buy a condo before selling their HDB flat, ensuring they secure their ideal unit without rushing. However, this strategy comes with a major financial consideration—your condo will be classified as a second property, triggering the Additional Buyer’s Stamp Duty (ABSD) of 17%. For a $1M condo, this means an upfront ABSD payment of $170,000. Yikes.
But there’s good news for married couples: If you sell your HDB flat within 6 months of purchasing your condo, you can apply for an ABSD refund. However, this rule is strictly enforced, with no extensions.
And as tempting as buying a brand-new condo might be, getting a resale condo might bode better since you can move in soon after you’ve bought it. This would make the transition a little more seamless as you won’t have to worry about finding a temporary home.
Loan-to-Value (LTV) ratio considerations
- If your HDB mortgage is still outstanding, you can only secure a 45% bank loan for your condo purchase.
- If your HDB loan is fully paid, you may qualify for up to 75% LTV, easing your financial burden.
Option B: Sell your HDB & stay somewhere temporarily before buying the condo
Another option for HDB upgraders looking to make the jump is to sell their HDB first before buying a condo unit. Those who choose to go this route would not need to pay any ABSD since their “new” condo will be considered their first property. There will also be no rush to sell their HDB within 6 months just to qualify for the ABSD refund. However, there are some slight caveats still.
You’ll have to find temporary living arrangements either with parents or by renting out a unit. The former will let you save a bit on rent, but either way, you’ll have to move houses twice which can be a hassle. By waiting to sell your HDB, you also run the risk of losing out on the ideal unit you have your eyes set on. Waiting on a similar condo to appear on the market would only mean you’ll be spending time not living in your own personal space.
Option C: Own both an HDB flat and a condo
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The third choice is for those who can afford both a HDB flat and a condo in Singapore at the same time on top of all the fees and mortgages that they have to pay. Basically, if you have no qualms about paying the hefty 17% ABSD, the world is your oyster and you can have 2 houses to call home.
Alternatively, you can also rent one of the properties out to help cover the mortgage. Renting a 4-room HDB flat can start from $2,050/month in Choa Chu Kang all the way to $2,900 in Queenstown*. Renting out a 1,000sqft condo in CCK on the other hand, starts from $2,900, while a similar condo unit in Queenstown starts from $4,450**.
*Prices derived from HDB.
**Prices derived from Squarefoot.
Tips on making the upgrade from a HDB to condo
Speaking to some homeowners who have upgraded from a HDB to a condo, they dished some sage advice for those who are looking to do the same.
1. Ideally you’re shopping around for a freehold or 999-year lease private property
Mr Pang, who moved from an HDB flat in Hougang to a condo in Pasir Ris, advised that house hunters find a freehold condo or 999-year-leasehold property where there’s no expiry date looming over your head. Owning property in perpetuity ensures that your future children and their children will have a roof over their heads, especially in land-scarce Singapore.
However, it’s important to consider whether freehold condos in ulu parts of Singapore are more valuable compared to leasehold condos in sought-after areas. If the price difference between the two is negligible, the perks that come with living nearer to the heart of town might make up for the lack of 900 years on the lease. We’d pick commuting to City Hall from Tiong Bahru rather than from Sembawang any day.
2. Rent out your BTO flat & stay with your parents while saving up for a condo
Another piece of advice from Mr Pang was to rent out your BTO flat and move in with your parents. This lets you save up for your condo’s down payment or renovation costs. We get that this might not be for everyone as different families have different dynamics and housing situations. But if your family is close, this can be a good way to accrue some funds. Just be sure to invite your parents to your housewarming party.
3. Extending your Option-to-Purchase to 12 weeks
Yes, it’s possible to extend your OTP when you’re selling your HDB flat from 14-21 days to longer, as long as both parties are agreeable to the conditions.
4. Negotiate to stay in your HDB if you need while waiting for condo renovations
If need be, you can negotiate with whoever bought your HDB flat for you to stay in your HDB for a while longer. This can come in handy if you’re just waiting for 3 months for your condo’s renovations to finish.
All these negotiations and terms should be listed in the Option to Purchase so it’s all in black-and-white.
How to upgrade from an HDB to a condo
Upgrading from an HDB flat to a condo is a pipedream for plenty of homeowners. Some people do it because of the posh amenities like steam rooms and pools, while others just want the knowledge that they’re owning a piece of property for life. Whatever your reason, making the leap is no small feat, but it doesn’t have to be hard.
As long as you upgrade within your means and don’t overestimate your finances, you too can live a life of gated real estate. Even if you aren’t able to afford it now, you can always put it on your vision board to manifest it in the future.
Read more related articles:
- Condos with panoramic sea views
- Affordable freehold condos near MRTs
- ECs and condos launching in 2022
- HDB vs Condo as an investment
This article was originally published on 4th July 2022, and updated on 4th March 2025.
Cover image adapted from (left): TheSmartLocal
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