For many Singaporeans, the resale value of a Housing and Development Board (HDB) flat is often assumed to be tied to its age, particularly once the structure hits the 40-year mark. This assumption usually stems from stricter rules regarding Central Provident Fund (CPF) usage and the amount of loan available from the board. Despite these economic headwinds, a significant number of homeowners are opting to purchase older units, often bypassing newer Build-to-Order (BTO) flats entirely.
Three Singaporeans shared their reasons for choosing resale flats over new developments. One buyer noted they acquired the property below the estimated market rate, which they felt secured a good financial position. Their primary objective was not investment, but finding a home close to their original residence and family members, specifically in an estate with established amenities like hawker centres, wet markets, and bus routes.
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Another owner, unable to secure a BTO flat due to salary exceeding the income ceiling, cited the superior layouts and better amenities found in mature estates. They also expressed a long-term view, suggesting that because many neighbours in the area were of a similar vintage, the government would eventually have to address the estate’s future, whether through the Selective En bloc Redevelopment Scheme (SERS) or interim upgrading.
A couple looking to expand their family chose a resale flat to avoid the lengthy waiting period for a BTO. They valued the ability to pick a specific location, choose neighbours based on the building’s condition, and access grants available for resale flats. However, they acknowledged that age remains a concern, preferring a unit that isn’t too old—specifically targeting the 35-year-old bracket—while noting that new BTO flats do not always guarantee higher quality.
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It is easy to assume that as lease years tick down, prices should fall. Yet, local economist Donald Low has argued that the premise of HDB flats as appreciating assets relies on “myopia and/or speculative herding” rather than fundamental value. If buyers accept that flats with fewer than 60 years of lease lose value, logic suggests they should begin to depreciate even earlier, potentially destabilising the market from the start. This theoretical tension is often ignored in favour of immediate convenience.
Not every buyer desires the shiny, inaccessible homes offered by BTO projects. The resale market offers immediate occupancy and the flexibility to choose a location that balances work, family, and lifestyle. While the condition of the unit and the general upkeep of the estate are critical factors, the unique trends of each neighbourhood mean that prices can remain surprisingly stable even as structures age. Ultimately, a property is only worth what a buyer is willing to pay.
