Comment: Why buy a S$1 million HDB resale apartment instead of a private condo?

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For a buyer to get a resale condo similar or larger in size to the HDB Executive Apartment, it would cost well over S$1 million. In 2022, the average negotiated price for 180-200 m² units at Rosewood in Woodlands was S$1.8 million while that of The Miltonia Residences was S$1.9 million.

Rosewood, Rosewood Park and The Miltonia Residences are all 99 year leasehold properties. If the buyer is looking for a freehold development, he will certainly have to shell out more for the apartment. In any case, there are fewer freehold residential properties in the suburbs than in the central region.

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Private home buyers are also not eligible for public housing subsidies. Therefore, if a buyer wants such a large house priced at S$1 million, the HDB resale market would offer more options than the private residential market.

HDB RESALE APARTMENTS REMAIN LARGELY AFFORDABLE

With these size, location and property type considerations in mind, are HDB resale apartments still affordable? After all, HDB resale prices are up for the 23rd consecutive month since May.

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But the rise in prices is also a reflection of demand exceeding supply.because the HDB resale market operates on free market fundamentals.

Over the past two years of the pandemic, work-from-home deals have led some buyers to seek larger apartments, while delays in project completion due to construction labor constraints have encouraged others to choose a resale unit over new construction. Some people who were shut out of the private residential market may have purchased an HDB resale apartment instead.

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