Some questions never get old — coffee or tea, Friends or How I Met Your Mother and of course, HDB or condo? That last one might be the trickiest, especially when both options have their own perks. While I can’t choose your beverage or recommend one sitcom (I recommend both), I can walk you through the pros and cons of these two housing options so you can decide which is a better fit for you!
1. Lease Ownership
HDBs come with a 99-year lease. This means you legally own your home but after 99 years, the government decides what to do with the property. Since no HDB has reached the end of its lease yet, what happens next is still unknown.
Condos, on the other hand, are private properties where owners have more say in what happens to the development. Most condos on the market have either a 99-year or 999-year lease, although 999-year leases are pretty rare these days.
When a condo’s 99-year lease is nearing its end, condo owners typically have two options: pay a premium to extend or refresh the lease, or let the property revert to the government. The decision is made collectively by all the owners in the development.
While the difference between these two may not impact your day-to-day life, it’s something worth considering, especially if you’re planning to leave the property as inheritance for future generations.
2. Cost
This is possibly the most important, if not THE deciding factor in this debate.
HDBs are significantly more affordable, making them ideal for first-time buyers. Plus, they offer access to grants like the Additional CPF Housing Grant (AHG) and Special CPF Housing Grant (SHG), lowering entry costs. On the other hand, condos typically have higher entry prices with no government grants, making them a less accessible choice for many.
Another key factor is the income ceiling—HDB sets a cap of $14,000 for families and $7,000 for singles under the Single Singapore Citizen (SSC) Scheme for flat purchases. If your monthly income exceeds this cap, then good for you! But you won’t be able to purchase a flat.
Ultimately, your choice depends on your financial situation and how big of a financial loan you’re willing to take. If you’re seeking value and flexibility, HDB flats offer a smart option. On the other hand, if you’re ready to invest in luxury living, a condo might be the more appealing choice.
3. Amenities and Facilities
When it comes to the perks that come with living in your estate, both property types have their strengths.
Living in a HDB often means having all your lifestyle needs conveniently within reach. These estates are designed to be self-sufficient, with easy access to hawker centers, coffee shops, schools and recreational spaces. The close proximity of these community amenities makes HDB living ideal if you value a strong sense of neighborhood and connection.
If you’re someone who values exclusivity, then a condo might be a better fit. Most condos offer facilities like swimming pools, gyms, BBQ pits and function rooms for gatherings. Since these amenities are exclusively for residents, they provide an added layer of privacy and a more exclusive living experience.
Your lifestyle preferences—and how often you rely on certain amenities—will play a big role in determining which option best suits your needs.
4. Location and Convenience
Where you live matters as much as what you live in. For instance, would you prefer being near a park, enjoying a sea view, or is being close to an MRT station a must-have for you?
HDB flats are often located in prime areas with easy access to multiple public transport options, making them a popular choice for commuters and families who value convenience.
Condos, on the other hand, are spread across various neighborhoods, offering options from heartland areas to upscale districts. However, condos don’t necessarily mean that it’s in an ‘ulu’ location. Developers are increasingly focusing on building near transport hubs to meet demand. This wide variety gives buyers greater flexibility in choosing a location that suits their lifestyle.
If being close to an MRT station is a top priority for you, properties within 1km are generally considered walkable, while those within 300m are regarded as highly convenient. Otherwise, take a look at each development and see which estate appeals to you!
5. Resale Value
Many buyers overlook a property’s investment potential in their eagerness to move in quickly. However, we need to think long-term and consider the potential investment opportunity of a property.
Condos generally have higher resale prices due to their more upmarket status and a consistent market demand. Private properties also tend to appreciate more over time compared to HDB flats. While HDBs are more affordable, their resale prices can be impacted by depreciation as the 99-year lease nears its end. Additionally, restrictions on foreign ownership for HDBs can limit the pool of buyers you can reach out to.
If upgrading or downgrading in the future and maximizing investment potential are priorities for you, a condo might be a better choice. On the other hand, if affordability and practicality are your main concerns, HDB flats are a solid, reliable option. If you’re planning to stay in your chosen property and selling is not in your cards right now, then resale value may not be a very important factor for you.
Weighing the Pros and Cons
Ultimately, choosing between an HDB and a condo boils down to your priorities, lifestyle, and financial situation. Are you looking for affordability and convenience? Or is luxury living and investment potential more your thing?
Take time to evaluate what matters most to you—you’ll be living in your decision for years to come! If you need help deciding between these two property types, then it might be worthwhile to consult someone who’s well-versed in the property market.
Yepp, that’s me! You don’t have to navigate your property journey alone—it can feel a little daunting, and that’s totally okay. Why not WhatsApp me? We can chat over coffee, and I’ll help you figure out whether an HDB or condo is the better fit for you!
