Better To Buy Condo or HDBIn 2025? Pros & Cons!

In 2025, it’s no longer surprising to hear of HDB resale flats selling for well over $1 million in Singapore. With price tags that rival private properties, many prospective buyers are left wondering — is it really worth spending that much on public housing, or is it time to level up to a private condominium?

As home prices remain resilient despite cooling measures and macroeconomic uncertainty, it’s crucial to weigh the pros and cons of buying an HDB resale flat versus a condo in Singapore. From eligibility and location to space, lifestyle and long-term investment value, the differences are more than just cosmetic.

Let’s begin by looking at what HDB resale flats offer in today’s market.

What is a HDB resale flat?

HDB resale flats are pre-owned public housing units in Singapore that are being sold on the open market by existing owners, usually after fulfilling the mandatory Minimum Occupation Period (MOP) of five years. 

Unlike Build-to-Order (BTO) flats, resale flats don’t come with a fresh 99-year lease. Typically, the lesser the number of years left on the lease, the lesser the price of the resale flat. Homebuyers who don’t want to ballot or wait for a Build-to-Order (BTO) flat can find HDB resale flats an attractive option.

As of 2025, million-dollar HDB flats are no longer a rarity. These tend to be:

• Located in prime areas near the city or MRT stations (e.g. Queenstown, Bishan, Toa Payoh);
• Larger units such as 5-room flats, jumbo flats, maisonettes, or executive apartments;
• Flats with unblocked views, modern renovations, or unique attributes.

Million-dollar HDB flats in Singapore are typically either close to the city centre (RCR) or are large apartments (4-room, 5-room, jumbo flats, or maisonette). Sometimes they are very close to the MRT stations.

To compare with condominiums in a similar price point, we made a quick search on one of the leading property portals and found that you can find relatively smaller condo units (like a studio, one-bedroom unit or two-bedder unit) in the Core Central Region (CCR) and Rest of Central Region (RCR) costing up to a million dollars.

If you are looking for a 3-room or 4-room condo, you may only be able to afford it in the Outside Central Region (OCR).

Please note that only Singapore citizens and permanent residents can purchase an HDB resale flat as long as they meet the HDB eligibility requirements.

Why are HDB resale prices increasing?

The surge in million-dollar HDB resale flats has become the new normal in Singapore. In 2020, only 82 flats crossed the million-dollar mark. By 2021, that number more than tripled to 261. Fast forward to 2024, and over 1,000 HDB flats were sold for at least $1 million—a figure that once made headlines is now a regular monthly occurrence.

And this trend shows no signs of fading in 2025. In just the first four months of the year, nearly 489 million-dollar flats were transacted, setting the stage for yet another record-breaking year. Notably, these flats are no longer confined to prime mature estates in central Singapore—non-mature areas like Bukit Panjang, Yishun, and Woodlands have also entered the million-dollar club.

In early 2025, the HDB resale price index climbed for the 20th straight quarter, recording a 1.6% increase in Q1 2025, and a steady 1.0% gain in January.

Analysts forecast 5–7% price growth by end-2025, easing from 2024.

The key drivers behind this HDB price climb include:

• Tight resale supply: Fewer BTO flats are reaching the 5-year MOP in 2025—only around 9,000 units, compared to over 31,000 in 2022. This severely limits the pipeline of resale-eligible flats. Lower supply alongside strong demand—especially from upgraders and owner-occupiers—has created upward price pressure.
• Lingering BTO delays: Pandemic-induced backlogs, though improving, still affect completion timelines for some BTO projects. Buyers unwilling to wait continue to turn to the resale market.
• Upgrader demand: Many Singaporeans are upgrading to larger HDB flats, especially families seeking more space due to hybrid work arrangements or long-term living plans.
• Desire for location and amenities: Resale flats in mature estates offer proximity to MRT stations, schools, and malls—benefits that many are willing to pay a premium for.
• Sustained confidence despite cooling measures: Despite tighter financing rules and property curbs, resale prices rose 9.6% in 2024, and are still on track to grow another 5% to 7% in 2025. Demand has proven resilient, supported by genuine owner-occupiers rather than speculative investors.

2025 continues to see HDB resale prices climb—albeit at a slower pace—with record-high million-dollar unit transactions and constrained supply backing steady demand. Analysts project a measured 5–7% annual growth. This makes investing in an HDB resale flat still attractive for upgraders and owner-occupiers, though buyers should prepare for premiums, especially in popular estates.

Benefits of buying a HDB Resale flat

More spacious for the same price: For families seeking space, resale HDB flats remain the best value-for-money option in 2025. At the million-dollar mark, a 4-room or 5-room resale flat can range between 970 to 1,200 sq. ft., with jumbo flats offering even more room—up to 1,900 sq. ft.

In comparison, a $1 million condo unit in the CCR or RCR typically ranges from 450 to 800 sq. ft., while you may get around 1,000 to 1,200 sq. ft. in the OCR, assuming a less premium location.

Prime locations with better amenities: Million-dollar HDB flats are often found in mature estates like Bishan, Queenstown, Toa Payoh, or Bukit Merah. These areas are highly connected, close to MRT stations, schools, hawker centres, and malls. That translates to a shorter commute and better daily convenience—often without the premium condo pricing.

No long wait or balloting: Resale HDB flats are move-in ready once the sale is completed—no need to wait years as with BTOs. There’s also no need for balloting, which increases your chances of securing a home in your preferred location, especially if you’re working with tight timelines (e.g., school enrolment or family expansion).

Good value for money (Strong price-to-space value): HDB resale flats still offer better PSF value than condos, particularly for larger units. Even as prices rise, resale flats remain one of the most affordable ways to live near the city or enjoy a larger home footprint. 

Plus, eligible first-time buyers can still benefit from grants like the CPF Housing Grant and Proximity Housing Grant, further reducing the net cost.

Drawbacks of buying a HDB Resale flat

Restrictions on reselling: For HDB resale flats, you must meet the minimum occupancy period (MOP) of 5 years before you can resell. For BTO flats, the time can go up to 9 to 10 years, which includes 4 to 5 years of construction time and then a 5-year MOP. This limits flexibility for those who might need to relocate, upgrade, or cash out early.

May need to pay a COV: In today’s competitive resale market, cash over valuation (COV) is becoming more common, especially for well-located or renovated units. Since banks will only finance up to the official valuation, you’ll need to fork out the difference in cash—often a five-figure sum—on top of your downpayment. This can strain buyers who aren’t prepared with sufficient liquid funds.

Pet ownership restrictions: An HDB flat may not be a viable choice for keeping pets. Note that HDB flats allow only a certain range of dog breeds and disapprove of having exotic pets like large spiders, iguanas, snakes, etc. Unfortunately, cats still are not on the approved list of pets in HDBs. If someone complains about your pet, you will have to let your pet go, considering you are still a few years short of fulfilling your 5-year MOP.

Higher cost of renovation: Renovating a resale flat often comes with hidden costs. You may need to remove outdated fixtures or redo prior modifications made by the previous owner. Unlike BTO flats, resale units typically require more extensive upgrades to plumbing, wiring, flooring, or layout changes to suit modern living preferences.

Are condos a good investment in 2025?

Whether a privately-owned condo is a good investment or not will differ depending on its intended use. For example, whether you use a condo as your primary residence, a rental property or a vacation home.

1. As a primary residence

If you took a home loan to buy a condo and are using it as your primary residence, you are building equity into your condo with each mortgage payment. You are also saving the monthly rent you would have paid otherwise. Plus, private condos offer a middle ground—more affordable than a landed home, yet with better amenities than public housing. This makes them a popular choice for first-time homeowners and couples planning long-term. 

2. As a rental property

Buying a condo as a rental property to generate passive income can also be a great decision. Condos remain a strong investment for rental income, especially in well-connected areas like Pasir Panjang, Novena, or Tampines, where rental demand remains high.

Their compact size makes maintenance easier, and they’re attractive to singles, couples, and expats. While short-term rental rules (like Airbnb) vary by condo management, the right location can fetch rental yields between 3% to 4.5% annually in 2025.

If you are investing in a condo to rent out, make sure you know what locations matter the most per your requirements. Make sure you pay close attention to any condo rules or rental policies that may impact your ability to find tenants for your property.

3. As a vacation or second home

If you’re considering a second home near your favourite leisure spots—say East Coast, Sentosa, or even the Iskandar region—condos can be a convenient and flexible choice.

Remember that if you are going to physically occupy the vacation home for only a few weeks each year, it should be worth the rent you are paying for the property. After all, you will be paying monthly instalments for a property that is just sitting there. In such scenarios, it is recommended to rent the condo when you are not using it and use the money from renting to cover the mortgage costs and HOA fees.

4. Price appreciation potential

Private property prices in Singapore have remained resilient post-pandemic, rising around 28% from Q1 2020 to Q4 2024 (URA data). While past gains like the 53.6% surge between 2010 and 2020 may not repeat, condos—especially freehold or well-located ones—still offer strong capital appreciation over the long term. 

That said, don’t expect quick flips. Most gains are realised over a 10+ year horizon. Your returns will depend on:

• Location and surrounding developments
• Future MRT lines or expressway access
• Facilities and overall condo upkeep
• Government cooling measures (like ABSD or loan restrictions)

Even if your rental strategy doesn’t go as planned, reselling the unit is always an option—especially if you’ve chosen a condo in a growth corridor or with unique appeal.

Benefits of buying a private condo

More privacy & tighter security: Privacy and 24/7 guarded security and controlled access are possibly the two biggest selling points of a private condo as they attract affluent individuals including professionals, expats, and families who prioritise safety and peace of mind.

You are saved from the annoyance of sales agents and even allow your little ones to go alone in the playground without worry because condos are gated and guarded round the clock. 

Lifestyle amenities at your doorstep: Apart from being a status symbol in Singapore, condos often come with an assortment of amenities like swimming pools, gyms, tennis or squash courts, barbecue areas, etc., which are also a plus if you use these facilities frequently.

This way, you don’t have to travel anywhere or compete with the general public for using these facilities. If you value convenience and use such facilities regularly, a condo saves you the trouble of separate memberships and travel time.

No restriction to fulfilling MOP: Unlike HDB flats, there’s no MOP for private condos. That means you can rent out or sell your unit at any time, subject to loan and tax regulations. This flexibility makes condos especially attractive for investors and homeowners who may relocate, upgrade, or cash out earlier than five years.

Drawbacks of buying a private condo

Monthly maintenance fees can be hefty: Condo living comes with ongoing financial commitments in the form of monthly fees paid to the Management Corporation Strata Title (MCST)—often referred to as condo or maintenance fees. These cover communal services like security, cleaning, landscaping, and upkeep of shared facilities such as pools, gyms, and function rooms.

The catch? Fees can increase over time, especially if major repairs or upgrades are needed. Plus, if you rarely use these amenities, you may feel like you’re paying for perks you don’t enjoy.

Rules and restrictions apply: Living in a condo means playing by the rules set by the homeowners’ association or MCST. These can include guidelines on renovations, pet ownership, and especially rental terms.
If you’re buying with the intention to rent, it’s essential to check for rental restrictions—some developments prohibit short-term rentals (like Airbnb), while others may enforce minimum lease periods or require landlord registration.

Should I upgrade from HDB to a condo?

In Singapore, “upgrading” from an HDB flat to a private condo is still widely seen as both a lifestyle and financial milestone. Many homeowners make this move after fulfilling the MOP of five years—whether for more space, better amenities, or a step up the property ladder.

Why consider upgrading?

The reasons why you can consider upgrading to a condo can vary. Some people look for a better location, while some may just want freedom from HDB’s ‘one-approved-dog’ per household rule. When you upgrade to a condo lifestyle, amenities like a swimming pool, gym, sports club, etc., are just a walk away from your home.

If you have kids and want to reside close to a specific primary school, you can choose a condo nearest to it.

When can you upgrade?

Switching from an HDB to a condo is a much easier process. You can upgrade as soon as you complete your MOP of 5 years. During this period, you cannot buy another HDB flat or private property in Singapore or abroad. You are also not allowed to sell your current HDB flat during your MOP.

How does the financing work?

If your HDB flat is fully paid off, you’ll have more flexibility:

• You can sell your HDB first before buying the condo, allowing you to use sales proceeds for the new downpayment.
• Or, buy the condo first, then sell your flat within six months—provided you meet the criteria for financing and can handle the interim cash flow.

In either case, you may be eligible for the maximum 75% loan-to-value (LTV) on your new mortgage—as long as you don’t have an outstanding home loan and your Total Debt Servicing Ratio (TDSR) remains within limits.

Can I downgrade from a condo to a HDB flat?

Yes, the reverse journey—from condo to HDB—is not only possible but becoming more common in Singapore, especially as life stages and financial goals evolve.

If you’re starting out in a compact one- or two-bedder condo and your family begins to grow, trading up in space by moving to a larger HDB flat might be the more practical move. Likewise, retirees or empty-nesters often opt for smaller HDB homes to cut costs and simplify their lifestyle.

But there’s a catch—a 30-month wait.

If you’re selling your private condo and plan to:

• Ballot for a BTO flat,
• Buy a new executive condominium (EC),
• Take an HDB housing loan, or
• Apply for CPF housing grants,

you’ll need to wait 30 months after the sale of your private property before becoming eligible.

This cooling-off period can be a major obstacle for condo owners looking to switch to HDB, especially for those hoping to move quickly or tap into subsidized housing options.

Still, there are situations where downgrading to an HDB flat makes sense:

• Older homeowners wanting to reduce monthly mortgage payments or cash out property gains.
• Empty nesters looking to right-size after their children move out.
• Owners tired of condo maintenance fees—especially if amenities like pools, gyms, or tennis courts go unused.
• Those eyeing government schemes like the Proximity Housing Grant (PHG) or Silver Housing Bonus (SHB) for seniors.

Bottom line? Downgrading isn’t necessarily a step back—it could be a step toward smarter financial planning.

Can I buy a resale HDB if I own a condo?

The short answer is: no—you can’t own both at the same time.

If you’re planning to buy a resale HDB flat while owning a private property in Singapore, HDB rules require you to sell your condo within six months of taking possession of the HDB flat (i.e. key collection). This condition applies even if you meet all other HDB eligibility requirements.

So while you technically can apply to buy a resale flat, it comes with a strict condition: you’ll need to let go of your private property soon after.

Pro tip: If you’re buying your first home as a condo, make sure it’s spacious enough to suit your long-term lifestyle plans—like starting a family—because moving into an HDB resale flat later requires giving up your private property.

This is especially important if you want to avoid the 30-month waiting period required to buy a BTO or apply for an HDB loan later on.

Final Thoughts

Both HDB resale flats and condos have distinct benefits that appeal to different types of homeowners and investors. A lot depends on your lifestyle, future plans, and financial flexibility.

For example, whether you travel every day to work in your own car or rely on public transport, or whether you have retired from work or not, might have an impact on your choice of property – HDB or condo – since usually HDBs are considered to provide good connectivity to public transportation. 

On the other hand, if you prefer privacy, amenities, and the long-term investment potential of private property, then a condo could be the right fit.

When comparing value, HDB flats offer more space for the same price, especially in central or city-fringe locations. Plus, first-time resale buyers may qualify for generous housing grants. That said, private condos tend to appreciate better over time and come with fewer usage restrictions.

If you have the financial muscle, buying a well-located condo could be a solid long-term investment in 2025. But don’t fall for the hype that a condo is always a lifestyle upgrade. 

There’s no shame in choosing an HDB resale flat that’s affordable, well-connected, and meets your family’s needs—you can always move up the property ladder later.

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