Singapore’s property market is known for its resilience, even during global downturns. For many homeowners, especially those who already own an HDB flat, the next big question is:
“Should I buy another property now? How do I know if it’s a good deal — and how can I build a property portfolio from here?”
This blog post breaks down:
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How to evaluate if a property is a bargain
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What options you have as an existing HDB owner
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Strategies to grow your real estate portfolio in Singapore
Let’s dive in.
🔍 Step 1: What Is a “Bargain” in Singapore Property?
In a market where land is limited and demand is always strong, the word “bargain” doesn’t mean “cheap”—it means “value for money.” A property is a good deal when:
✅ 1. It’s Below Market Value
Check recent transaction data on:
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HDB Resale Price portal
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PropertyGuru or 99.co
Compare the asking price to similar units in the area, factoring in size, floor level, facing, lease remaining, and renovation.
✅ 2. Rental Yield Is Solid
If the gross rental yield is above 3–4% for residential (or 5–6% for commercial) — and you’re able to service the mortgage — it’s worth evaluating.
Formula:
Rental Yield = (Annual Rent / Purchase Price) x 100
✅ 3. It Has Capital Growth Potential
Look for:
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Upcoming MRT lines (e.g., Cross Island Line)
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New malls, schools, business hubs
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Undervalued neighborhoods in transformation (e.g., Bukit Batok West, Geylang, Queenstown)
If URA Master Plan shows development in the area, chances are capital values will follow.
✅ 4. It Fits Your Financial Profile
Even a discounted property isn’t a bargain if it over-stretches your cash flow. Make sure:
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You can meet the Total Debt Servicing Ratio (TDSR) (max 55%)
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You have at least 6 months of emergency savings
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You're not sacrificing retirement, kids’ education, or insurance for property
🏠 Step 2: What Are My Options as an HDB Owner?
As an HDB owner, your strategy depends on whether your current flat is:
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Fully paid or with an existing loan
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Under the Minimum Occupation Period (MOP)
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Your only residential property
Let’s explore the options.
🏘 Option 1: Sell HDB, Buy Condo (Upgrade)
This is the classic route. After fulfilling your 5-year MOP, you sell your flat and use the proceeds + CPF + cash to buy a private condo.
Pros:
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No need to pay ABSD (Additional Buyer’s Stamp Duty)
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Can unlock gains from HDB appreciation
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Move into a private property with more freedom and facilities
Cons:
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Gives up public housing safety net
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Higher financial commitments
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Condo prices fluctuate more than HDB
💡 Tip: Always check how much CPF you need to refund upon sale of your HDB (principal + accrued interest) before calculating affordability.
🏘 Option 2: Keep HDB, Buy Condo (Second Property)
If you can afford it, you can retain your HDB and buy a second property. But this route involves:
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ABSD: Currently 17% for Singaporeans (on the second residential property)
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Stricter Loan Limits: You may only get 45%–55% loan based on your profile
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Cash Outlay: You’ll need to fork out 25% of the condo value in cash/CPF
Pros:
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HDB remains a fallback residence
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Rental income from the second property
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Diversifies your real estate holdings
Cons:
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ABSD eats into returns
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Higher upfront and monthly costs
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CPF usage is limited for second property
💡 Strategy: Look for properties with high rental demand near MRT, business parks, or international schools to offset ABSD through yield.
🏘 Option 3: Buy Commercial Property (No ABSD)
If you want to avoid ABSD altogether, consider commercial shophouses or office spaces. These don’t count as residential, so no ABSD or MOP restrictions.
Pros:
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Higher rental yields (5–7%)
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No ABSD or MOP
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Can use company structure to purchase
Cons:
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Requires strong business acumen
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Tenants less stable
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GST & commercial property tax apply
💡 Tip: Ideal for investors with cash on hand and a network of SME tenants or F&B operators.
🏘 Option 4: Upgrade HDB to Executive Condominium (EC)
Executive Condos (ECs) are a hybrid: subsidized like HDB but privatize after 10 years.
Pros:
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Lower entry price than private condos
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Strong capital growth after 5–10 years
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Eligible for CPF grants if you’re upgrading from an older flat
Cons:
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MOP still applies
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Income ceiling of $16,000
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Limited supply
💡 Tip: New launch ECs like those in Tengah or Sengkang may offer best of both worlds.
💼 Step 3: Building a Property Portfolio
Once you’ve bought your first or second property, building a portfolio means adopting an investor’s mindset:
🧠 1. Understand Your Risk Appetite
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Conservative? Focus on yield-generating condos or REITs.
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Aggressive? Consider undervalued properties or value-add opportunities.
📍 2. Diversify by Type and Location
Avoid putting all your eggs in one basket. A well-balanced portfolio may include:
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1 city fringe condo for rental
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1 HDB flat for personal use
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1 small commercial unit (e.g., Joo Chiat shophouse) for yield
💸 3. Consider Joint Ownership or Trust
Buy under your spouse’s name (if they don’t own property) to avoid ABSD. For children’s future, explore holding in trust (but note the ABSD is 65% for trust-held properties as of 2023).
📊 4. Track Your Portfolio Like a Business
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Monitor cash flow, rental returns, maintenance cost
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Keep tabs on URA Master Plan and cooling measures
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Rebalance if one property underperforms
🧾 5. Use Leverage Wisely
While property is a leveraged asset, don’t overextend. Use equity unlock (refinancing or cash-out) only if you have a clear reinvestment plan.
✅ Final Thoughts: Yes, You Can Build a Portfolio — With Strategy
If you already own an HDB and have dreams of building a real estate portfolio, it’s possible — but only with the right planning, financial discipline, and long-term view.
Always ask yourself:
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Is this property serving a purpose (home, income, or appreciation)?
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Can I hold it comfortably for 10–20 years?
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Is the deal supported by data, not emotion?
In today’s high-interest, high-tax environment, bargains are rare — but value can still be found if you think long term and execute with clarity.
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