To those HDB owners who flat have fulfilled or near Minimum Occupation Period (MOP) of 5 years

How can you and your spouse upgrade/buy a new condominium unit and create an extra $1.1M wealth in your retirement fund without touching your savings?** 


**Note: If your combined household income is at least $8,000 and do not own any other private property. 

Jason & Mary are married with 2 children. They are now living a 4-room HDB Flat in Seng Kang and the flat has just met its MOP. Jason & Mary are considering to buy a new condominium. They both have a combined household income of at least S$8,000 per month.

However, their plan was to upgrade to bigger HDB unit as the children are growing up fast and they could enjoy bigger house. 

Eventually, they decide a new condominium as they think it will be a better choice for them. As Jason & Mary still prefer the young housing estate of Seng Kang, they are considering to buy a nearby new condominium.

Which one to choose?

Most of the people think that they can't afford to buy private property due to the much higher financial commitment like 5% cash downpayment when booking a unit, 20% upfront payment via cash or CPF before 75% bank loan kicks in etc. 

So, which one to choose?

A S$550K 5-room HDB Flat or 3-Bedroom condominium less than $1.5M in the nearby area.

What made their final decision?

Both Jason & Mary are 40-year-old this year. They will reach the retirement age of 65-years old in 25 years time.  

If they choose to buy and own $550K 5-room HDB flat which will be fully paid after 25 years, the flat price remains flat due to ageing. They downgrade to 2-room flat (let's say is S$300K) for them to live after retirement. They will get back $250K in cash (assuming after deducting the CPF money used & incurred interest).

With monthly expenses of $2351 per month expected during their retirement life, it can only last for 8 years. What will happen next?

What if they choose to buy a private condominium?

Assuming the condominium price also remain flats after 25 years. The housing loan will almost be fully paid. After downgrading to 2-room flat, there will have est. $1.0M which will last for many more years.

In the long run, the private condominium will continue to appreciate due to supply & demand while HDB will depreciate sharply after 40 years old.

With a combined household income of at least S$8,000...

Jason & Mary can purchase a private property of more than $1.0M, assuming 25 years tenure and 2.5% interest rate. 


There are a few new condominium developments in District 19 now. 3-bedroom units at Parc Botannia, Riverfront Residences, The Florence Residences, Affinity @ Serangoon, The Garden Residences etc which are affordable to Jason & Mary.


Based on the $1.0M property, the upfront cash will be around $276,600 plus the legal fee of about $3,000. Jason & Mary can utilise the cash proceeds from selling their 4-bedroom HDB flat, together with fund of CPF. With that, they probably can purchase a new condominium without forking out savings. 

Check out all the Singapore new condominium here.


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