How To Choose the Perfect HDB Resale Flat in Singapore

This was originally posted on Planner Bee.

Finding your dream home can feel overwhelming with the wide range of choices in Singapore, from Housing Development Board (HDB) build-to-order (BTO) and resale flats to condominiums and landed properties.

Most first-time home buyers would pick an HDB flat as it is significantly more affordable than condominiums and landed properties. With a wait time of at least three and a half years for BTO flats, it is no wonder that many turned to the HDB resale market to get their homes quicker.

Inevitably, this led to an increase in prices of HDB resale flats over the past few years, rising by 4.9% in 2023 and 10.4% in 2022. However, with careful planning and prioritisation, you can still navigate the world of HDB resale flats and find the perfect one for yourself.

For those who are curious to learn more about HDB resale flats, read on as we’ve compiled a few golden must-knows when it comes to buying your first HDB resale flat in Singapore.

First of all, are you eligible?

Firstly, you must apply for an HDB Flat Eligibility (HFE) letter via the HDB Flat Portal for a holistic understanding and assessment of your housing and financing options before you commence your home-buying journey.

You will also have to be eligible based on your marital status or age to successfully purchase an HDB resale flat.

With all that done, what are the factors to consider next?

1. Price

The cost of an average 4-room HDB BTO flat in Queenstown along Commonwealth Drive starts from S$537,000 (October 2023 BTO), while a 4-room resale flat in the area will set you back S$900,000 to S$1,200,000. With 11 years off its 99-year lease, the resale flat in a similar location is asking for at least S$363,000 more, up to double a BTO flat’s price.

Despite the higher price, you could be saving on renovation costs, depending on how well-kept the resale flat is. If you are doing minimal renovations and are not modifying most of the installations, it might be worthwhile to choose the resale flat.

An upside of getting older flats is that they are also typically larger than the current BTOs of the same type. In this case, you could be getting a bigger flat with a resale purchase, making the price you paid worthwhile.

2. Lease expiry

The remaining lease period for the property you’re eyeing is extremely important. This ensures that you can sell the flat for a reasonable price if you intend to do so in the future, or if there are enough years on it for you to live in your golden years.

Remember, HDB resale flats are units currently owned by someone else. For them to sell to the next eligible buyer, they must be occupied for at least 5 years — the Minimum Occupation Period (MOP) as mandated by HDB.

HDB resale flats do not come with a new 99-year lease and the value of these flats depreciates over the years. Hence, you are technically buying a flat at a higher cost with fewer years on its lease.

You should also note that as a current buyer, you will not be allowed to rent out the house during the first 5 years of your stay.

Therefore, before purchasing a resale flat, it’s good to have a basic idea of what you intend to do with it later on, be it for your own stay, for renting purposes, or as an investment. This would save you from any headaches or bumps in the road ahead.

3. Location and amenities

One of the biggest reasons for picking a resale flat over a BTO is that you get to pick where you want to stay as opposed to being restricted by where the next BTO launch will be. The location and accessibility of your future flat is vital to ensure you live comfortably in your new neighbourhood.

Recce the area to check if public transport is within walking distance and if malls or other amenities like hospitals and gyms are nearby. Identify the important amenities you would need, for example, if you plan to have children, living near childcare centres and primary schools would be a great help for you.

Also, regardless of whether you drive or not, you would also want to study the traffic situation around your potential flat.

If your HDB block is near a major intersection or a religious space, for example, a church, temple, or mosque, chances are, the roads will be congested during specific timings or days. Should you drive, there could be potential jams, or parking would be difficult to find during these times. With an increase in human traffic on these days, it could be difficult to get a taxi or a seat on the bus for those who do not drive.

More importantly, if you are keen on selling or renting in the future, property prices in convenient areas appreciate better and their rentability rates are also higher.

4. Direction of the flat

With how hot and humid Singapore is, knowing the direction your flat faces can help you understand if your home will feel warmer and if it is able to stay relatively cool throughout the day.

West-facing units tend to get the warmest during the day due to the afternoon sun. If your bedroom’s windows face the west, chances are your bedroom could stay warm into the night, making it even less ideal for a good sleep.

Instead of relying on your agent for the directions, pop open your phone’s Compass app and check the directions yourself. Stand in front of the door and windows to get a more accurate reading of the directions.

5. Interior condition of the flat

Another crucial deliberation is the current condition of the flat. Buying a resale flat is a big ticket expense, and you must make sure you are getting what you paid for.

As HDB resale flats are usually older and have been lived in, you should look out for signs of wear and tear or installations that cannot be moved, such as water pipes, during your house viewings. All these could affect your interior design choices or the flat’s livability, and can increase costs of renovations should you need to make drastic changes.

Check closely to make sure that the walls and ceilings are crack-free. Freshly painted walls and ceilings might indicate a cover-up job for mould or water leaks. You should also look out for water stains in the bathrooms and kitchen as they can indicate existing structural damage and would require extensive repairs.

Floors are also expensive to fix so make sure to check that the tiles are well-maintained. Loose tiles, chipped tiles, and discoloured tiles could all be additional costs for you in the near future.

Visiting the flat in person also gives you a chance to check how different it is as compared to its floor plan. For example, you might have wanted to place a new closet in the corner, but visiting the flat itself shows electrical wiring obstructing the space, making it impossible to fit in the closet. You must consider all these little inconveniences as changing the existing layout will cost more.

6. Existing fixtures

Next — water, lights and electricity.

Test out the water pressure (turn on taps or showers), check for any flickering lights (if you don’t intend to change the bulbs), and take note of the placement of pipes and electricity sockets when you visit the house.

Ideally, one should consult an electrician to check the cables and electrical outlets before moving in. Electrical rewiring might also be needed if the flat is well-lived-in due to wear and tear. Weak water pressure might indicate a need to refit the plumbing fittings, increasing renovation costs.

If you don’t intend to change the existing air-conditioning system, you should also check that they are functioning well and have been maintained regularly. Any worn-out insulation or pipelines that require replacing will rack up your renovation costs.

7. The vibes

We are not just talking about feng shui, but more about the feels you get when you are in your potential new home.

Try to immerse yourself in the space and contemplate if you can imagine yourself living in the neighbourhood. In your immediate surroundings, watch out for any signs of loan shark activity in the corridors (could be repainted walls or even the infamous O$P$), and mingle around with next-door neighbours if you catch them to get a feel of the environment.

Also, it’s good to know the neighbourhood’s history before you move in, especially the block and unit you’re planning to cop because – well, there are less auspicious reasons why people sell their flat. You can do a quick Google search on the area and look up any notable news that could have cropped up in the past.

If you’re superstitious or religious, you can also consult a fengshui master to assess the unit.

Otherwise, it is always good to bring someone along to check out the unit, especially if you are staying there with them. You might like the unit but your family could have weird vibes towards it, and living there could affect your relationships.

Conclusion

While the search for your perfect HDB resale flat will require patience and possibly even compromise, remember not to settle for anything less than a home that aligns with your lifestyle and needs.

By weighing the above considerations and prioritising your needs, you will be well-positioned to make an informed decision. Otherwise, engaging a good property agent who understands both your needs and the market well can make the buying process painless.

Take your time, do your research, and find the perfect space to call your own.