For many Singaporeans Housing Development Board (HDB) flats are like stepping into bigger and more luxurious housing ahead. The upgrade from HDB flats to costly, comfortable condos is a common phenomenon in Singapore.
That is one reason new condos sell like hotcakes in Singapore. The recent examples of faster Condo sell-out are evident in the Normanton Park sale within a week, and the faster sell-out of Reef at King’s Dock, Martin Modern, and Parc Central Residences.
There is advice from property gurus on how to upgrade HDB to a condo in SG. Of course, there are lucrative options for those who want to move into private condos selling their HDB housing property.
There are also options in Executive condos or villas in exotic locations. Ultimately, it all depends on the financial resources of the upgrading buyer and the selling price of the current HDB in hand that is up for sale.
The soaring demand for new condos and a series of private condo launches are testifying that upgrading from HDB is a big business. Those HDB homeowners who have completed the flat’s Minimum Occupation Period (MOP) can buy a private property mostly stylish condos using the proceeds of the sale of their HDB flat and leveraging other funds like savings.
So, if you are looking to upgrade HDB to Condo in SG there are specialist experts ready to advise you on the best ways to go about transitioning from HDB to a new condo or Executive Condo under construction.
These property agents are fully specialized in the upgrade domain guiding HDB owners to purchase swanky condos and villas.
One option is to buy the new property and wait for the HDB flat to sell. It is good to sell HDB within six months of collecting the keys to the new place. The second option will be selling your HDB flat first, then using that funds to purchase a new unit and arrange an interim accommodation during the waiting period.
The third plan is to own both HDB and private condos simultaneously. This is applicable only for a new private condo purchase. Compared to buying a fresh condo, moving to a resale condo, is not very cumbersome. In the latter, the new home is already built and you only need to shift in once the purchase is complete and after selling your HDB. The transition is seamless.
In the case of buying a new condo as upgrading from HDB flat directly from the developer, unless the unit has a Temporary Occupation Permit or TOP, there will be delays in taking possession. If it is still under construction including executive condos, they will be called “Buildings Under Construction” or BUC.
There are many reasons behind the craze for purchasing BUC over a resale property. The pull of the latest new amenities, swanky and modern facilities, and early-bird discounts are great attractions. The ready-to-move-in house does not need require big spending on extensive renovations.
BUCs have a waiting time of three to four years, depending on the construction time. This means upgrading from HDB flat to a BUC condo will entail a gap of a few years and you have to settle into another accommodation until then. Executive Condominiums (ECs) are public housing for the first 10 years where HDB rules are in force.
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JJ Wong is the founder of MOPUpgraders.sg and has been a Property Wealth Planner in the real estate market for the past 6 years. He has helped many clients achieve their aspirations with the right financial planning and sound timeline planning. He is the man behind upgrading case studies of those who are holding on property under 10 years.