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What type of HDB flats can single Singaporeans buy?

Published

8 years ago

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By SingSaver.com.sg

Single Singaporeans looking to own their own HDB flats can choose between a BTO unit or purchasing a flat from the resale market.

So you’re single and living it up, and the next milestone is to get your own HDB flat. You can finally avoid the increasingly pointed questions from your parents and also get bumped up another rung on the ‘I’m An Adult’ ladder.

It wasn’t so long ago that owning an HDB flat was but a pipe dream for single Singaporeans. Back then, the best you could do was to rope in a parent as a co-lessee, and hope they don’t go nosing around too much while you’re away at work.

Today, HDB rules have been tweaked to recognise that many Singaporeans are putting off marriage until they’re older and that singlehood is becoming a more acceptable lifestyle. So if getting your own home is high on your to-do list, here’s a quick guide to the options you have available to you.

What are the HDB Eligibility Requirements for Singles?

First things first, HDB flats are only available to Singaporeans or PRs. You have to be at least 35 years old if you’re applying as an unmarried or divorced individual. The only exception is if you are an orphan with no siblings; you may apply for your own flat upon turning 21.

Unrelated singles who are 35 years or older can also jointly apply for an HDB flat – up to 4 such individuals can co-own a flat this way.

The only other eligibility requirement is the EIP and SPR quota (used to encourage and maintain social cohesiveness). However, this is more likely to impact your flat’s location, rather than act as a hurdle against your eligibility to apply for one.

What HDB Flats Can Singles Buy?

As a single buyer, you have 2 choices when it comes to HDB apartments – 2-room BTO flat, or a resale HDB flat.

The table below presents a quick summary of the pros and cons of both options.

Which HDB Flats Should Singles Get?
2-Room BTO Flat HDB Resale Flat
More affordable

(approx S$90,000 to S$135,000)

 More expensive

(approx S$270,000 to S$350,000)
Longer waiting time

(average 3 to 4 years)

 Shorter waiting time

(You can complete your purchase in as little as 6 months)
Restricted to 2-room units (35 sqm to 45 sqm) No restrictions in flat type, starting from 3-room flats (65 sqm and up)
Lower availability Higher availability
Brand-new apartment Pre-owned apartment
Full 99-year lease Shorter lease period remaining
Cannot sub-let Can sub-let

 

BTO 2-Room Flats Are Affordable, But Restricted in Size

The biggest advantage of getting a BTO flat is a financial one – BTOs are priced significantly cheaper than those on the resale market. However, unmarried individuals are restricted to 2-room* Flexi units only, even if there are multiple co-applicants.

With 1 bedroom and 1 living room, the total floor space of such units ranges from 35 sqm to 45 sqm.Clearly, a 2-room HDB flat is small, but if you apply for one under the BTO scheme, you’ll be getting a brand-new apartment that you can renovate to suit your needs. For example, the current 35 square meter model has a sliding partition in lieu of a solid wall, allowing you to realise an open floor plan apartment.

However, 2-room BTO flats are notoriously hard to get. As recently as November 2016, the balloting exercise counted 7 applicants for each available unit among singles.Then, there’s the waiting time. Even if you’re lucky enough to be successful in your ballot, you’ll still need to wait around 3 to 4 years for your flat to be built before you can move in.

*When referring to HDB flats, always subtract ‘1’ from the name to determine how many bedrooms you’ll be getting. So a 3-room flat means 2 bedrooms + 1 living room, 4-room means 3 bedrooms + 1 living room, etc.

Resale Flats Are Available Immediately, But Cost Far More

If balloting (and waiting) for a BTO 2-room unit doesn’t appeal to you, you can try looking for a suitable apartment on the resale market. Singles – whether individually or jointly – can purchase any type of HDB resale they desire, provided they can afford it.

The main disadvantage of buying a resale flat is the cost. At present, and reasonably for the next 30 years or so, the smallest resale HDB you can probably buy is a 3-room unit. (HDB flats have a minimum occupancy period of 5 years, and with current supply not yet meeting demand, it is unlikely you’ll find any 2-room units on the resale market anytime soon.)

The prices of HDB resale flats have been steadily coming down, thanks to government cooling measures. This has helped put resale flats within reach of most single buyers. However, you should still expect to pay around S$270,000 to $360,000 for a 3-room HDB resale unit.

If your resale flat has less than 60 years remaining on its lease, you’ll be limited in how long you can use your CPF to pay for your mortgage. This means that as your mortgage matures, you’ll have to pay more cash out of your pocket. Do bear this in mind when planning your finances.

After you’ve located and purchased your own HDB resale flat, you’ll most likely have to/want to carry out some major renovation work. Anecdotal evidence suggests that you should budget S$30,000 for a 3-room flat, S$40,000 for a 4-room flat, and S$50,000 for a 5-room flat for renovation.

As a single homeowner, you’ll undoubtedly find a resale flat more expensive to own. However, a resale unit offers you one financial advantage that a 2-room BTO does not. If you don’t need the extra rooms, you can rent them out to generate some additional income.

Granted, there are pros and cons to sharing your home with renters, but don’t underestimate the financial possibilities that leasing can open up.

Singsaver.com.sg, Singapore’s go-to personal finance comparison platform, guides consumers on the best money habits with its credit card comparison tool and allows real-time personal loans product comparison.

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Worries loom over speculative trends in HDB market as S$1M transactions dominate headlines

Four HDB flats at Bidadari’s Alkaff Vista estate recently crossed the S$1 million mark after reaching their Minimum Occupation Period (MOP). The surge in property agent visits prompted residents to put up signs to deter them. Netizens are concerned about speculative trends in the HDB resale market, particularly as properties in mature estates are viewed as lucrative investment opportunities.

Published

1 week ago

on

8 October 2024

By

Earlier, it was reported that four HDB flats at Bidadari’s Alkaff Vista estate recently crossed the S$1 million mark following the completion of their Minimum Occupation Period (MOP), signalling the rising demand for homes in the centrally located estate.

These high-value transactions took place between August and September 2024, with the highest being a five-room unit that sold for S$1.2 million last month.

The other three, all four-room flats located at Block 106B and Block 106A, changed hands for prices ranging from S$1.08 million to S$1.17 million.

According to HDB’s website, another unit at Block 105A, a low-floor flat, was sold for S$937,500.

Property Agents Flood Estate, Prompting Residents to Put Up Signs to Ward Them Off

In a report by Shin Min Daily News, several residents have complained about being inundated by property agents.

Some residents have reported daily visits from agents, prompting them to put up signs requesting that agents refrain from knocking on their doors, as they have no intention of selling.

At least 200 residents have reportedly placed “Do Not Disturb” signs outside their homes to ward off these unsolicited visits.

According to residents, agents typically knock on doors during weekday evenings, but since the signs were posted, many agents have taken the hint and now leave brochures instead.

Alkaff Vista is a Build-to-Order (BTO) project consisting of four blocks, was initially launched between 2015 and 2016.

Prices for four-room flats ranged from S$433,000 to S$682,000 during that period, depending on factors such as floor level and location, according to PropertyNets.SG.

Social Media Users Fear Rising Housing Costs May Impact Future Generations

Public reaction to these million-dollar flat sales has been mixed, with many expressing concerns on social media about the rising costs of public housing.

Some worry that the trend of million-dollar flats making headlines could make it more difficult for future generations to afford homes.

One comment recalled that the government had previously stated only about 2% of transactions would exceed S$1 million.

He expressed concern for future generations, stating that even with grants, they may still need to pay more than S$500,000 for a new flat.

He questioned how Singaporeans can increase the birth rate while also ensuring sufficient retirement savings.

The comment referred to a recent statement from HDB asserting that public housing in Singapore remains affordable and attainable for citizens.

It noted that million-dollar flats made up only 2 percent of total resale transactions in the past 1½ years.

HDB also pointed out that these high-value flats primarily consist of maisonettes, executive apartments, jumbo flats, and five-room units with desirable features, such as prime locations.

Netizens Voice Concerns Over Speculative Trends in HDB Resale Market

A netizen even questioned whether the current HDB resale market has “become a lottery”, with some hoping to secure en bloc or BTO units in high-demand areas. “This island is one big casino!” he remarked.

Another echoed this sentiment, noting that those who pay over S$1 million for an HDB flat are often individuals who have sold their landed properties and downsized to single-storey flats for retirement, freeing up cash in the process.

Another netizen pointed out that some view properties in mature estates as profitable investment opportunities.

The comment suggesting that buyers are rushing to purchase properties there, hoping to cash in once they are eligible to sell after the five-year mark, potentially earning a fortune for the first owner.

He suggested that if the government sells flats to citizens who no longer need them, it should take the flats back at a reasonable price and resell them to those in need.

He emphasised that these flats should not be placed on the open market, as they must adhere to HDB regulations, noting that HDB properties are not private assets to begin with.

A comment expressed frustration and concern over the government’s allowance of high-value HDB flat sales, which they believe contradicts the purpose of subsidised housing meant for poor and middle-income citizens.

He highlighted perceived loopholes in the system, as rising prices make it difficult for some citizens to afford homes, even with CPF (Central Provident Fund) assistance.

One netizen propose implementing an income ceiling for resale flat buyers and recalling subsidies for those who profit from selling their flats.

The comment also expresses dissatisfaction with the current Minimum Occupation Period (MOP), suggesting that it is ineffective in curbing speculative trends.

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Housing

Four Bidadari flats sold for over S$1 Million after reaching MOP

Bidadari’s Alkaff Vista estate has witnessed a surge in million-dollar HDB resale flat sales, with four units surpassing S$1 million after meeting their Minimum Occupation Period (MOP). A five-room flat fetched S$1.2 million in September. Meanwhile, some residents have resorted to placing signs on their doors to deter persistent property agents.

Published

1 week ago

on

7 October 2024

By

SINGAPORE: Bidadari’s Alkaff Vista estate has seen a surge in million-dollar Housing and Development Board (HDB) resale flat transactions, with four units crossing the S$1 million mark following the completion of their Minimum Occupation Period (MOP).

These high-value sales took place between August and September, showcasing the rising appeal of the centrally located estate.

Alkaff Vista, a Build-to-Order (BTO) project consisting of four blocks, was initially launched between 2015 and 2016.

Prices for four-room flats ranged from S$433,000 to S$682,000 during that period, depending on factors such as floor level and location, according to PropertyNets.SG.

Now, four out of the five resale flats in the estate have fetched prices exceeding S$1 million.

A check on HDB website indicated that the highest resale transaction recorded so far is a five-room flat at Block 106A Bidadari Park Drive, which sold for a staggering S$1.2 million in September.

This unit, located mid-level in the 17-storey block, is classified as an “improved” flat model.

Other significant transactions include:

  • A high-floor unit at Block 106B, sold for S$1.17 million.
  • A flat at Block 106A, between the 13th and 15th floors, sold for S$1.13 million.
  • A unit at Block 106B, between the 10th and 12th floors, sold for S$1.08 million.

Meanwhile, the only unit sold below S$1 million was a low-floor flat at Block 105A, which changed hands for S$937,500.

Demand Fueled by Strategic Location and Design

Alkaff Vista’s strategic location plays a pivotal role in the skyrocketing prices.

Situated within a five-minute walk from Potong Pasir MRT Station and a 13-minute walk from Woodleigh MRT, the estate offers residents easy access to Singapore’s public transport network.

Both stations lie on the North-East Line (NEL), providing seamless connectivity to key destinations like Dhoby Ghaut and HarbourFront.

Bidadari, part of the mature estate of Toa Payoh, has been designed as a “community in a garden,” featuring vast green spaces, parks, and walkable areas.

The 10-hectare Bidadari Park adds to the estate’s appeal, offering residents a serene environment amidst urban living.

Additionally, the estate is located near well-regarded schools such as Cedar Primary and Secondary, Maris Stella High School, and Stamford American International School, making it a prime choice for families.

PropertyNets.SG also attributes the rise in prices to the estate’s well-thought-out housing layouts and proximity to these public transport hubs, which significantly increase its attractiveness to potential buyers.

Residents at Alkaff Vista Urge Property Agents to ‘Stop Knocking on Our Doors’

While some homeowners have benefited from the lucrative resale market, not all are pleased with the increased attention.

According to Shin Min Daily News, several residents have reported being bombarded by property agents who visit their homes nearly every day, prompting some to place signs outside their doors, requesting that agents refrain from knocking as they have no intention to sell.

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