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Ultimate Guide To Resale HDBs in Singapore [2024]

Resale HDB Singapore

Best Resale HDB Singapore
Best Resale HDB Singapore

Welcome to your ultimate guide to Resale HDB Singapore. Whether you’re looking to buy your first home or considering an upgrade from your current BTO flat, navigating the resale HDB market in Singapore can be a daunting task. This guide is here to simplify the process for you. We understand that buying a resale flat in Singapore can be a significant investment, given the rising resale flat prices.

The best resale HDBs in Singapore are Queenstown, Toa Payoh, Bukit Timah, Clementi, and Tampines.

That’s why we’re committed to providing you with all the necessary information you need to make an informed decision. Our goal is to ensure that you find not just any home, but the right home for you. So, let’s delve into the journey of finding that perfect resale HDB flat that suits your needs and budget. Happy house hunting!

Quick Summary

  • Best resale HDBs in Singapore are Queenstown, Toa Payoh, Bukit Timah, Clementi, and Tampines.
  • When purchasing a resale HDB in Singapore, it’s essential to consider factors such as location, flat size, remaining lease, loan eligibility, and the potential resale levy.
  • The resale HDB market in Singapore provides a myriad of opportunities for homebuyers, offering a broad range of flats across various neighborhoods, often with shorter waiting times compared to BTO flats.

What Are Resale HDBs?

What Are Resale HDBs - Resale HDB Singapore
What Are Resale HDBs

Resale HDB flats are an integral part of Singapore’s housing landscape. These flats are homes previously owned by Singaporeans and Permanent Residents and are resold to eligible buyers. Unlike new Build-To-Order (BTO) flats, resale HDBs offer immediate occupancy and often provide more location choices, allowing you to find your dream home in your preferred neighborhood. The key advantage of resale HDBs is their availability throughout Singapore, making them an attractive option for those looking to settle in specific areas.

Key Considerations

  • Location: The location of your resale HDB flat can significantly impact your lifestyle and convenience. Consider factors like proximity to public transportation, schools, healthcare facilities, supermarkets, and recreational areas.
  • Price: While resale HDB flats might be more expensive than BTO flats, the price could be justified by the immediate availability and location advantages. Also consider the Cash-Over-Valuation (COV) amount which refers to the difference between the resale price and the official valuation.
  • Flat Condition: Check the flat’s condition during your visit. Look for signs of wear and tear and any potential repair costs that may be needed.
  • Remaining Lease: Unlike BTO flats, resale HDB flats have consumed part of their 99-year lease. The remaining lease period can affect the resale value and your eligibility for housing loans.
  • Eligibility Criteria: Ensure you meet the eligibility requirements set by HDB. This includes the Ethnic Integration Policy (EIP) and Singapore Permanent Resident (SPR) quota for the block/neighbourhood, among others.
  • Loan Financing: Consider your financing options. You can either take a housing loan from HDB, which may have a lower interest rate, or from banks. Check the loan-to-value (LTV) limit, interest rates, loan tenure and monthly instalments you can afford.
  • Resale Levy: If you have previously bought a subsidised flat, you may need to pay a resale levy.

The Resale HDB Process in Singapore

The Resale HDB Process in Singapore - Resale HDB Singapore
The Resale HDB Process in Singapore
  1. Eligibility Check: First and foremost, verify your eligibility for buying a resale flat. This can be done through the HDB website.
  2. Financial Planning: Determine your budget and consider all costs involved, including the down payment, monthly installments, and additional fees.
  3. Property Search: Look for a suitable flat according to your choice of location, size, budget, and other preferences. Property portals, real estate agents, or newspaper ads can aid in this search.
  4. Flat Inspection: Once you’ve found a potential flat, inspect its condition thoroughly. It’s advisable to bring along a professional inspector for an unbiased opinion.
  5. Price Negotiation: Negotiate the price with the seller. The agreed price should include the Cash-Over-Valuation (COV) amount.
  6. Option to Purchase (OTP): Pay an Option Fee to the seller to secure the Option to Purchase (OTP). The OTP gives you the exclusive right to buy the flat within a specific period.
  7. Submit Application: Submit an online resale application. Both the buyer and seller must submit their portions of the application within seven days of each other.
  8. HDB Appointment: Attend the First Appointment with HDB, where HDB will explain the procedure and financial plan. The resale price will also be finalized.
  9. Sales Agreement: After the First Appointment, a Completion Date is set for the Second Appointment. The buyer and seller must sign the sales agreement on this day.
  10. Handover: On the Completion Date, the buyer makes the remaining payment to the seller, and the seller hands over the flat to the buyer.

Best Resale HDBs in Singapore

1. Queenstown

Queenstown - Resale HDB Singapore
Queenstown

Queenstown is Singapore’s first satellite town. It offers a blend of old and new, with many upgraded HDB flats. The area is well-connected with MRT stations and bus interchanges, and it’s close to the city centre.

2. Toa Payoh

Toa Payoh - Resale HDB Singapore
Toa Payoh

One of the most sought-after mature estates, Toa Payoh boasts well-developed amenities and efficient transport links. Its proximity to reputable schools and shopping centres makes it an exciting option for homebuyers.

3. Bukit Timah

Toa Payoh - Resale HDB Singapore
Bukit Timah

Resale flats in Bukit Timah are highly desirable due to the area’s high living standards. With its close proximity to nature reserves and premier schools, the area is often chosen by those who prefer a quieter residential experience.

4. Clementi

Clementi - Resale HDB Singapore
Clementi

Clementi is a popular town due to its balance between commercial and residential spaces, offering residents convenience without compromising on peace. The area is easily accessible via the East-West MRT line and is home to a mix of schools and recreation facilities.

5. Tampines

Tampines - Resale HDB Singapore
Tampines

Tampines is one of the most populated regions, yet it still maintains a sense of community. It is self-contained with three shopping malls, numerous eateries, and is well-connected to the rest of Singapore via the East-West and Downtown MRT lines.

Renovation and Maintenance Tips

Renovation and Maintenance Tips - Resale HDB Singapore
Renovation and Maintenance Tips
  1. Stick to a Budget: Before you begin any renovations, set a budget. Keep a track of all costs, including labour, materials, and unexpected expenses.
  2. Hire Trusted Professionals: If you’re not a DIY expert, hiring professional help can ensure quality work. Be sure to do your research and hire reputable contractors.
  3. Choose Timeless Designs: Opt for designs that are classic and timeless, rather than trendy. These have better long-term value and appeal to a wider range of buyers.
  4. Prioritize Important Areas: Focus on key areas such as the kitchen and bathroom. Well-maintained and updated spaces in these areas can significantly boost your flat’s resale value.
  5. Maintenance is Key: Regular maintenance helps prevent costly future repairs. Address issues as they arise to keep your flat in good condition.
  6. Energy Efficiency: Consider investing in energy-efficient upgrades. These not only reduce utility bills but are also appealing to potential buyers.
  7. Use Quality Materials:: While it may be tempting to save money on materials, cheap options can lead to more frequent repairs. Investing in quality materials can increase the lifespan of your renovations.
  8. Permits and Regulations: Ensure any renovations comply with HDB’s renovation guidelines and regulations. You may need to obtain necessary permits before work begins.
  9. Painting: A fresh coat of paint can drastically change the look of the flat. Stick to neutral colours for wider appeal.
  10. Flooring: Good quality flooring can significantly improve the aesthetic of your flat. Ensure it’s well-maintained and consider updating if it’s worn out.

Legal and Financial Aspects

Legal and Financial Aspects - Resale HDB Singapore
Legal and Financial Aspects
  • Legal Obligations: In selling your resale HDB flat, ensure you’re compliant with all regulations set by HDB. You must fulfil the Minimum Occupation Period (MOP) and meet all stipulated legal requirements.
  • Flat Valuation: As noted earlier, a valuation of your flat is crucial. This process determines the market value of your flat and is done by a professional valuer.
  • Financial Calculations: Evaluate all financial aspects, including possible profits or losses, the payable resale levy, and the remaining balance in your CPF account.
  • Loan Settlement: If there’s an existing loan on the flat, it needs to be fully settled. You can use the proceeds from the flat’s sale, savings, or a combination of both.
  • Taxes: The seller is responsible for paying property tax up to the point of sale, and the buyer will be responsible for property tax thereafter.
  • Legal Fees: Be aware that legal fees may apply. For instance, if you are engaging a solicitor for the conveyancing process, you’ll need to budget for this expense.
  • Agent Commission: If you’re using a property agent to facilitate the sale, you’ll need to pay a commission, which is usually a percentage of the sale price.
  • Transfer of Ownership: The legal process of transferring the flat’s ownership from the seller to the buyer needs to occur. This is typically done during the HDB Second Appointment.
  • Conveyancing Fees: These are fees for the legal services necessary to transfer the flat’s ownership. The amount varies depending on the nature of the transaction and can typically be paid using CPF.

Resale HDB Singapore

As you’ve journeyed through this Ultimate Guide To Resale HDBs in Singapore, you’ve gained valuable insights into the world of resale HDB transactions. Whether you’re a buyer searching for your ideal home or a seller looking to make a successful transaction, remember that knowledge is your greatest asset. Armed with this understanding, you can confidently embark on your resale HDB journey, making informed decisions that will shape your future in Singapore’s vibrant housing market. For further assistance, feel free to reach out to our experts who are here to guide you every step of the way.

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Frequently Asked Questions

If you have any questions about Resale HDB Singapore, you can refer to the frequently asked questions (FAQ) below:

What are the best resale HDBs in Singapore?

The best resale HDBs in Singapore are Queenstown, Toa Payoh, Bukit Timah, Clementi, and Tampines.

Is resale HDB worth it?

Thus, HDB resale flats are a good option if you don’t want to waste time waiting or renting. However, with prices at a record high, do consider if the price you’re paying is worth it based on the remaining years left on the lease.

Can I buy resale HDB in Singapore?

Yes. Besides the eligibility criteria, the main regulation resale flat buyers need to worry about is the Minimum Occupation Period (MOP), which is typically five years from the key collection date. During the MOP, the buyer is expected to live in the flat and is not allowed to rent out the entire unit.

Can foreigner buy HDB resale in Singapore?

Under the Residential Property Act, foreign nationals are permitted to own residential property in Singapore. However, there are certain restrictions on the type of property they may own. List of Properties Singapore PRs are eligible to Purchase: Resale HDBs – only with another Singapore PR or SG Citizen.

Does it make sense to buy resale HDB?

Though there are arguments for and against renting, the general consensus is that we are better off owning our property than renting one for the long-term. This leaves us to consider resale HDB flats as the best alternative to getting something for our immediate occupation.

What factors influence HDB resale prices in Singapore?

HDB resale prices are influenced by a variety of factors including the flat’s location, size, remaining lease, renovation condition, and market demand. Prime flats in mature estates or near amenities often command higher prices. However, good deals can also be found in non-mature estates.

Can private property owners purchase an HDB resale flat?

Yes, private property owners can buy an HDB resale flat. However, they must sell their private property within six months of the HDB purchase. Additionally, they must meet the HDB eligibility criteria and comply with other HDB resale restrictions.

What is the CPF Housing Grant and how does it benefit resale buyers?

The CPF Housing Grant is a subsidy provided by the government to assist Singaporeans in purchasing their HDB flat. It can be used by resale buyers to offset the purchase cost, subject to eligibility criteria. The grant amount differs for various categories, like family grants, singles grants, and proximity grants.

What are ‘prime flats’ in the context of HDB resale in Singapore?

‘Prime flats’ refer to HDB units located in mature estates, typically close to the city centre or other amenity-rich areas. They are highly sought after due to their convenient location, and they usually command higher prices in the resale market.

Can I use a bank loan to finance my HDB resale flat purchase?

Yes, you can use a bank loan to finance your HDB resale flat purchase. However, there are restrictions on the amount you can loan, which is determined by the Mortgage Servicing Ratio and the Loan-to-Value limit set by HDB and the Monetary Authority of Singapore. It’s also important to note that you may need to pay a downpayment.

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