In the heart of Singapore’s bustling housing market, a surprising trend is taking root. Young couples, traditionally drawn to the allure of gleaming new condominiums and Build-To-Order (BTO) flats, are increasingly setting their sights on older resale HDBs.
This shift in preference is raising eyebrows and challenging conventional wisdom about what constitutes the ideal home for young families.
For years, the pursuit of newness has been a driving force in the property market. The promise of modern amenities, pristine interiors, and the latest design trends has made new builds the coveted prize for many aspiring homeowners. However, a confluence of factors is now prompting a re-evaluation of this mindset.
Skyrocketing property prices, shrinking floor areas in new developments, and a growing appreciation for the unique charm and value of older estates are just some of the reasons behind this surprising trend. In this blog post, we’ll delve deeper into these factors, exploring why young couples are ditching new condos for older resale HDBs and what this means for the future of Singapore’s housing landscape.
Affordability: A Key Driver
At the heart of this growing trend is a simple, yet undeniable truth: older HDB flats are significantly more affordable than their newer counterparts, especially new condominiums. The price gap between the two has been widening over the years, especially post-Covid, making condos increasingly out of reach for many young couples.
Take, for instance, there are still many numerous 4-room resale older HDB flat, which hovers around S$450,000 to S$550,000. Sound really affordable for many young couples.
In contrast, a similar-sized new or resale condo unit in the range of 900sqfto to 1,100sqft, in a comparable location like Bukit Batok in District 23, can easily cost close to S$2 million. That’s a significance price difference that we are looking here!
Even in mature estates like Clementi, although older flats command a premium, the price difference remains substantial. 4-room resale HDB in Clementi can cost around S$600,000 to S$800,000.
Resale or recent TOPed condo in the same district with similar size can easily range from $1.6 million to $2.4 million.
The Budget Squeeze
This stark price disparity has put immense pressure on young couples’ budgets. Many find themselves priced out of the condo market, unable to afford the hefty down payments and monthly mortgage installments required.
“We always dreamt of owning a condo, but the reality was simply out of reach for us,” shares Emily, a 28-year-old marketing executive who recently purchased a resale HDB in Queenstown with her husband. “We realized that an older HDB would give us more space for our money and allow us to start our lives together without being burdened by a huge loan.”
Emily and her husband are not alone. Many young couples are making similar choices, opting for older HDBs as a practical and affordable way to enter the property market. While the dream of owning a brand-new condo might seem appealing, the financial realities often dictate a different path.
Space and Layout: Getting More for Your Money
One of the most enticing aspects of older resale HDBs is the generous space they offer. Built in an era when space wasn’t as constrained, these flats boast floor areas that often dwarf their modern counterparts.
For example, a 4-room flat from the 1980s or 1990s could easily span 100 to 110 square meters. In contrast, a new 4-room BTO flat today typically measures around 90 square meters. This means that older flats provide an extra room’s worth of space – a significant advantage for growing families or those who simply crave a more spacious living environment.
Even when compared to condos, older HDBs often come out on top in terms of sheer square footage. While new condo units are known for their sleek designs and modern finishes, they often sacrifice space to achieve a more compact footprint. This can be a dealbreaker for couples who prioritize having ample room to live, work, and play.
The Perks of Spacious Living
The benefits of having more space are numerous and far-reaching. For families with young children, it means having enough room for a dedicated play area, a comfortable study space, or even a spare bedroom for guests. For couples who work from home, a spacious HDB flat can be transformed into a functional home office without sacrificing living space.
Below is the 3Rm HDB, located in Clementi, that my client gave me the exclusive right to sell. With a space of 82sqm (882sqft), it is really up to the imagination of the next owner to design to his own preference.
Moreover, spaciousness contributes to a greater sense of comfort and well-being. Having ample room to move around, entertain guests, or simply relax can significantly enhance one’s quality of life.
Creativity Unleashed
The larger floor areas in older HDBs also offer a canvas for creativity. Many young couples are drawn to the potential for customization and personalization that these flats offer. With fewer restrictions on renovations compared to BTOs, homeowners can reimagine the layout, knock down walls, and create unique spaces that reflect their individual tastes and needs.
Here is an instance on how one of my clients has transformed an old 3RM HDB to her own taste and preference where she has shrunk the common bedroom so that she has a bigger living space. I believe the tenant of her home will definitely enjoy this transformation of her!
For instance, some couples have transformed their older HDBs into open-concept havens, merging living, dining, and kitchen areas to create a seamless and airy space. Others have carved out dedicated home offices, hobby rooms, or even walk-in wardrobes. The possibilities are limited only by one’s imagination and budget.
The Allure of Mature Estates
Location plays a pivotal role in any homebuyer’s decision, and for young couples seeking older resale HDBs, mature estates hold a unique appeal. These well-established neighborhoods offer a wealth of advantages that newer developments often lack.
Established Amenities
Mature estates boast a wide array of amenities that have been developed and refined over time. From bustling hawker centers and wet markets to modern shopping malls and entertainment hubs, everything you need is just a stone’s throw away. This convenience factor is a major draw for busy couples who value easy access to daily necessities and leisure activities.
Infrastructure and Connectivity
Older estates typically have well-developed infrastructure, including efficient public transportation networks, extensive road systems, and ample parking facilities. This ensures seamless connectivity to other parts of the island, making commuting a breeze for those who work or study in the city center.
Schools and Educational Institutions
Many mature estates are home to reputable schools and educational institutions, from preschools to tertiary institutions. This is a significant consideration for couples with children or those planning to start a family in the future.
Community and Vibrancy
Older neighborhoods often have a strong sense of community and a unique character that newer developments lack. The presence of long-time residents, traditional shops, and local landmarks creates a vibrant and authentic atmosphere that many find appealing.
While mature estates offer undeniable advantages, they also come with certain trade-offs. Older flats might require more maintenance and upkeep compared to newer ones. The surrounding infrastructure might not be as modern or cutting-edge as in newer developments.
Additionally, the higher demand for older flats in mature estates can sometimes lead to increased competition and higher prices. This means that buyers might have to compromise on factors like floor area or unit condition to secure a property within their budget.
Beyond Price and Space: A Multifaceted Shift
While affordability and space are undoubtedly major driving forces, the allure of older resale HDBs extends beyond these factors. A confluence of additional elements is reshaping young couples’ preferences and contributing to this surprising trend.
Time is of the Essence
For many young couples, the prospect of waiting years for a BTO flat to be built simply doesn’t align with their timeline. Resale flats offer a compelling alternative, allowing couples to move in almost immediately after the transaction is completed. This is particularly appealing for those who are eager to start their lives together, establish a home, or accommodate a growing family.
Freedom to Personalize
Unlike the cookie-cutter layouts of new BTO flats, older HDBs offer a blank canvas for creativity and personalization. With fewer restrictions on renovations, couples have the freedom to transform these spaces into unique homes that reflect their individual style and needs.
Shifting Priorities
Beyond practical considerations, there’s also a shift in attitudes towards homeownership among young couples. Many are less interested in viewing their homes as long-term investments and more focused on creating a comfortable and fulfilling living space now. This aligns well with the appeal of older flats, which offer a sense of character and history that new builds often lack.
Furthermore, recent government policies have also played a role in boosting the appeal of resale flats. Enhanced CPF grants, relaxed CPF usage rules, and initiatives like the Voluntary Early Redevelopment Scheme (VERS) have made older flats a more attractive proposition for buyers.
These combined factors have created a perfect storm of sorts, fueling the demand for older resale HDBs and leading young couples to rethink their housing priorities. As the trend continues to evolve, it’s clear that older flats are no longer seen as mere budget options, but as viable and desirable alternatives to new condos and BTOs.
Conclusion
The growing popularity of older resale HDB flats among young couples signals a significant shift in Singapore’s housing landscape. Driven by affordability concerns, a desire for more space, the appeal of mature estates, and a changing mindset towards homeownership, this trend is redefining what constitutes an ideal home for young families.
Resale flats offer a compelling alternative to new builds, providing not only a more budget-friendly option but also a wealth of possibilities for customization and personalization. With their unique charm, spacious layouts, and established neighborhoods, these homes are capturing the hearts and imaginations of a new generation of homeowners.
If you’re a young couple contemplating your first home purchase, consider exploring the world of older resale HDBs. With the right guidance and a bit of creativity, you might just discover that your dream home is hiding in plain sight, waiting to be transformed.
For those who are ready to embark on this exciting journey, consider engaging the services of Jimmy Sum. With his professional knowledge for resale HDBs, he can help you navigate the market, find your perfect home, and unlock its full potential. Don’t miss out on this opportunity to create a home that truly reflects your values, style, and aspirations. The resale renaissance is here, and it’s time to embrace it!
