For international investors looking to invest in a Southeast Asian rising economy, Singapore presents a promising opportunity. Despite the fact that Singapore sells property at a high price, it has the highest ownership proportion in the world, at more than 90%. The geographic location of this country adds icing to the cake in terms of luring foreign investors. If you want to buy property in Singapore, you need learn more about the market so you can make better judgments. Choosing between a HDB flat and a condominium is always a difficult decision.

So, what is the difference between a HDB flat and a condominium, and which is a better investment in Singapore?

HDB Apartment

HDB flats, or Housing Development Board flats, are government-subsidized public housing in Singapore. The majority of Singapore’s residential housing developments are overseen and developed by the government. Approximately 78.7% of the country’s population lives in such housing. The primary motivation for developing HDB flats was to provide affordable housing with the option of receiving financial assistance from the Central Provident Fund at the time of purchase. The board is developing new facilities for producing up-market public housing developments in response to shifting demands.

Condo

A condominium, or ‘condo,’ is a privately owned individual unit within a building with other units. The owners of such condos acquire shared common areas such as garages, elevators, gyms, pools, and other amenities as a group. Condos are usually built in taller buildings, however individual condos can also be seen in some markets.

• A better investment option

To figure out which is the superior investment option, you must first figure out why you want to acquire property. You must understand the ins and outs, and you must receive a clear response to your request. This is because if you can clarify your needs, you will be able to better match them to the amenities offered by a condo or HBD flat.
Because HBD flats are public housing, there are specific requirements for maintaining them, which can make the investment process more difficult if you don’t want to be restricted. There would also be a waiting period before you could rent or sell the property. When you buy a private condo, however, there are no such restrictions. Nonetheless, it is your goal that should take precedence.

• Property costs

When buying anything, especially in a foreign country, property costs are quite significant. Condos are generally more expensive to rent than HDB flats because they are private property. The cost, as well as the location, are important considerations. Property in a popular or prime location is more expensive than those in less central locations. So, before you make a budget, you need to figure out which sites are important for your needs. Furthermore, if you are on a restricted budget, you can transfer from condos to HDB flats.

• Eligibility

When it comes to buying properties in Singapore, eligibility is another important element to consider. You must have nationality as well as family nucleus eligibility to acquire HDBs. Purchasing a condominium, on the other hand, has no such limits.

• Accessibility

Accessibility considerations should also be considered. If you need easy access to bus stops and rail stations, HDB flats may be preferable to condos because HDB flats are generally placed closer to such locations. Condos, on the other hand, may be a better alternative if you like a quieter environment because they are typically developed in less congested places. Because some condos have equal accessibility, there may still be discrepancies in the decision-making process.

• Risks that have been calculated

Finally, you must take sensible risks. The majority of investors use rental income to fulfill their monthly mortgage payments. For this, you’ll need to concentrate on the interest rate environment. When calculating the rental amount, you can choose a secured or fixed-rate loan. Condos, rather than HBD flats, may be a better option if you are more concerned with capital gains.
It’s worth noting that if you buy a condo and then decide to have an HBD, it won’t be easy to change your mind. When you own a condo, you are not eligible to apply for flats. On the other hand, if you buy a HDB first and then desire to improve, it will be relatively easy to sell and upgrade to a condo. So, before making any decisions, consider all of the advantages and disadvantages so that you do not regret the inconvenience later.