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HDB flat vs. Condo: Which is a better investment in Singapore?


Singapore proffers a promising investment scope for foreign individuals who are targeting an emerging market in Southeast Asia. Although Singapore sells property at a high price, it holds the record of an ownership percentage more than 90%. This country’s geographical location works as a cherry on the cake for attracting foreign investors. If you want to buy property in Singapore, you need to know more to help you make more informed decisions. There is always a dilemma between buying an HDB flat or a condominium.

So let’s find out what is a HDB flat and condominium, and which is a better investment for you in Singapore.


HDB Flat

HDB flats or Housing Development Board flats are public housing in Singapore that the government subsidizes. Most of the residential housing developments in Singapore are governed and developed publicly. About 78.7% of the residents of the country live in such property. Primarily, providing reasonably priced housing was the main motive behind building HDB flats where there was an opportunity to be financially aided by the Central Provident Fund in the time of purchasing. Since the demands are changing every now and then, the board is introducing new facilities for producing up-market public housing developments.


A condominium, shortly known as a ‘condo’, is a privately owned individual unit within a building of other units. The owners of such condos jointly purchase shared common areas, including garages, elevators, gyms, pools, and more. Usually, condos are made in taller buildings while separate condos in some markets can also be seen.

Better investing choice

  • To understand what the better investing choice is, first and foremost, you need to understand why you want to buy property. You must know the ins-and-outs and there must be a specific answer regarding your need. This is because when you can specify your requirements, it would be better for you to match it with the facilities provided by a condo or HBD flat.

Since HBD flats are public housing, there are some rules on maintaining such properties which complicates the investment process if you do not want to be bound by criteria. Also, there would be a period to be obeyed before you can rent or sell the property. On the other hand, when you buy a private condo, no such rules will be applied. Still, it is your purpose that should be in priority.

  • Property prices

Property prices are very important when you are buying anything, more so when it is in a foreign land. Generally, renting a condo will be more expensive than renting an HDB flat since condos are private property. Location plays a significant role; the cost as well. Popular or prime location’s property is costlier than the non-centrally located properties. So before making the budget, you need to know what locations matter for your requirements. Besides, you can switch condos to HDB flats if you have a tight budget.

  • Eligibility

Eligibility is another factor that will play a considerable role when you want to buy properties in Singapore. To purchase HDBs, you will need to have nationality along with family nucleus eligibility. Antagonistically, there are no such restrictions about purchasing a condominium.

  • Accessibility

You should also take note on accessibility issues. If you want to access bus stands and train stations easily, you may prefer HDB flats over condos as HDB’s are often located closer to such stations. But, when you prefer a peaceful atmosphere, condos might be a better choice since they are usually built in some of the less busy areas. There can still be differences in the choice-making process since some condos have equally fair accessibility.

  • Calculated Risks

Lastly, you need to take some calculated risks. Most of the investors cover the monthly mortgage repayments by the rental income. You will need to focus on the interest rates environment for this. You may go for a secured or fixed-rate loan when you want to calculate the rental amount. If you are more focused on capital gains, condos might be the option for you rather than HBD flats.

Point to be noted; when you have bought a condo and then want to change your decision to get an HBD, it will not be very easy for you to do so. You are not allowed to apply for flats when you have a condo. Contrarily, if you purchase an HDB first and decide to change it, it will not be too difficult to sell it and upgrade to a condo later.

So before making any decisions, think about all the pros and cons so that you do not regret the hassle later.

Want to know other aspects of Singapore? Here are 5 Reasons Why You Need to Invest in Singapore in 2020.

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