Should You Sell Your HDB Flat For A (Smaller) New Launch Condominium?

Considered one of the 5Cs of Singapore, owning a condominium remains an aspirational goal for many Singaporeans.

Beyond offering amenities like a gym and swimming pool—features that can be particularly appealing to families—condominiums also serve as a subtle marker of socioeconomic status. Just like the car you drive, the career you have, or even the school your child attends, they all act as social signals that shape perceptions of one’s financial standing and lifestyle.

Unfortunately, due to rising property prices in Singapore, purchasing a condominium has become increasingly expensive in recent years. The Private Residential Property Price Index (Non-Landed) has risen from 100 in 2009 to 203.4 as of 2024—an increase of 113.4 points over 15 years, or approximately 7.5% per annum. This growth outpaces the average wage increments enjoyed by the population during the same period, making it more challenging for the average person to afford a condominium today compared to two decades ago.

To counter rising property prices, developers have opted to build smaller units, keeping the overall price of newly launched condominiums within reach for buyers. For example, ParkTown Residence—a development designed with families in mind, as reflected in its child-friendly amenities—offers 3-bedroom units starting from 926 square feet, with an indicative price of $2.07 million ($2,236 psf). Similarly, many other newly launched condominiums feature compact 3-bedroom units, such as The Orie (starting at 850 square feet for $2.09 million) and The ELTA (starting at 926 square feet for $2.198 million).

In comparison, 4-room BTO flats are typically at least 90 square meters (approximately 968 square feet) in size. This means that homeowners selling their HDB flats to “upgrade” to a condominium may be downsizing in terms of living space.

The key question is: Does this trade-off make sense? What are the pros and cons of such a decision?

Greater Price Upside In Buying A Condominium Unit, Particularly New Launches

Despite the smaller size and significantly higher price, many buyers are drawn to condominium living because they believe in its greater price appreciation potential—especially for newly launched developments.

Whether this holds true is highly debatable. Stacked Homes has explored this topic in detail. Still, the key takeaway is that many HDB upgraders (and the agents advising them) perceive new launch condominiums as having higher upside potential, particularly when one buys directly from the developer, compared to older resale condominiums.

In recent years, this strategy has indeed paid off. For example, Stacked Homes highlighted that Pasir Ris 8, an integrated development, had its 3-bedroom units initially sold at an average price of $1,503 psf when launched in 2021. By 2024, prices for similar units had risen to $1,800 psf—an increase of approximately 20%. A quick search on PropertyGuru shows that the development, now that it’s about to receive its TOP soon, has asking prices ranging from $1,888 to $2,400 psf.

There are a few reasons why this strategy has worked for some buyers.

First, purchasing a newly launched unit and holding it until its Temporary Occupation Permit (TOP)—ideally after the three-year Seller’s Stamp Duty (SSD) period—can yield a good return. The reason is straightforward: new buyers are willing to pay a premium for a unit they can move into immediately, without the wait. This follows a similar logic to why the Sale of Balance Flats (SBF) in Build-To-Order (BTO) exercises sees high demand.

Another reason is the pricing dynamics of new launches. Buyers who enter early often secure a better price than those who purchase later from the developer. This is because developers, once they have sold the bulk of their units, can afford to raise prices while still being confident of selling out before the five-year Additional Buyer’s Stamp Duty (ABSD) deadline. For instance, if a developer manages to sell 90% of its units in the first week of launch, they will likely price the remaining 10% higher, knowing that demand remains strong. This pricing strategy creates at least a paper gain for early buyers.

The Prestige Of New Launch Condominiums

There’s no denying the extensive marketing efforts that developers pour into promoting newly launched condominium units. Beyond highlighting the investment potential, developers and their agents also sell the lifestyle aspirations that come with a new launch.

Step into a showroom, and everything is designed to impress—you see beautifully furnished interiors, well-planned layouts and premium finishes that make it easy to picture yourself living there. Even if the actual unit is smaller than your current home, the showroom experience creates an aspirational pull that makes the upgrade feel worthwhile.

The Logic Of Paying More For A Smaller Space

Suppose you sell your BTO flat after its Minimum Occupation Period (MOP) to upgrade to a newly launched condominium. In that case, you might find yourself paying two to three times more for a similarly sized home in today’s market. Is this a logical decision?

From an investment perspective, there are some valid arguments in favour of upgrading. Assuming the property market continues to perform well in the long run, private condominium prices will likely appreciate faster than HDB flats. This is partly because the government is vested in keeping HDB prices affordable for the masses, while price increases in the private property market are less of a political concern.

If your main priority is to own a private condominium—whether for decoupling purposes, proximity to a preferred school or lifestyle reasons—a resale condominium or even a private apartment might be a more practical choice. Many homeowners prefer older condominiums, which tend to offer larger living spaces at a lower price per square foot compared to new launches. This allows them to enjoy a more spacious home than their existing HDB flat while benefiting from the amenities of condominium living.

Read Also: Why The $16,000 EC Income Ceiling For EC May No Longer Makes Financial Sense

Top Photo By Raymond Quek/DollarsAndSense

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