Are you purchasing a property for the first time? Which is a better option? Housing Development Board (HDB) flat – BTO or HDB Resale, Executive Condominium (EC) or Private Condominium? You may wish to consider the following point.
Built To Order (BTO) / Sales of Balance Flat (SBF) HDB Flat
- BTO prices are increasing and a 4 room flat will easily cost $350K on average in suburban areas. Upon meeting your MOP, the resale market for 4 room HDB flat is ranging from $400K – $450K.
- Not much capital gain if you were to sell after meeting MOP, taking into consideration of the high entry price and loan interest.
- Recommended for lower income group and with the intention to stay for good.
HDB Resale Flat
- Entry Price of a 4 room flat is ranging from $400K – $450K as mentioned above in suburban areas.
- No capital gain, even after deducting the first timer grant as loan interest has to be taken into consideration.
- Recommended for lower income group who needs a place to stay immediately with the intention to stay for good and Permanent Resident citizen.
Executive Condominium (EC) – new launches
- Entry price is 20% – 25% lower than private condo.
- Only those who fall under the EC eligibility criteria can buy.
- Can sell in the open market after 5 years of MOP and fully privatised after 10 years.
- Best capital appreciation as compare to HDB flat and private condo.
- Recommended for Singapore Citizen (SC) or Singapore Permanent Resident (SPR) citizens with medium income group and buyers looking for good capital gain.
Private Condominium – new launches
- Anyone can buy
- Entry level is 20% – 25% higher than EC
- Not restricted by MOP to sell but do take note of the Seller Stamp Duty (SSD) under the cooling measures.
- Good Capital gain as compared to HDB flats.
- Recommended for people who do not qualify for New Launch ECs, higher income group and looking for good capital gain.