Property
Million Dollar HDB Flat?
Why I bought a $960,000 HDB flat, and don't regret it one bit.
What kind of person pays almost a million dollars for an HDB flat? Apparently, me.
Yes, I bought a resale HDB Executive Apartment in Mei Ling Street for $960,000. That is dangerously close to seven digits, and depending on who you ask, it makes me bold, foolish, or both. But hear me out before you judge.
From belief to financial logic
I used to believe that freehold property was the only way to go. Why "own" a leasehold asset that you will eventually give back to the government? But I have since learned this.
Beliefs don't build wealth. Logic does.
And when I started approaching housing through logic, not emotion, I saw things differently.
Step one: know yourself
I had to be honest with myself. I am just an average Singaporean who can realistically own one property at a time. This means I will be living in my home, not investing in it. And if you live in it, you are consuming it. That is a cost, not an asset.
Step two: define needs, not wants
Here is what I needed in a home:
- Four good-sized bedrooms
- Near an MRT
- Close to family
- Accessible for daily life: schooling, enrichment, parks, and so on
With these criteria, I looked at Queenstown. It ticked every box.
Step three: compare the math, HDB vs condo
On price per square foot (PSF), HDB units run about $600+ PSF, while condos run about $2,000+ PSF. Assuming a 25-year loan tenure at 2.6% per annum (the HDB concessionary loan rate):
| Type | Price | Monthly mortgage (est.) | PSF cost |
|---|---|---|---|
| HDB | $960,000 | ~$2,800/month | ~$1.80 |
| Condo | $3,000,000 | ~$9,000/month | ~$6.00+ |
Would I pay $6,000 more per month just to get a pool, a gym, and a security guard? No thanks. Even better, my HDB overlooks a nearby swimming pool and running track, and there is a police station just 500m away.
The rent versus buy check
Average rent in the area is about $4.50 PSF, and my mortgage costs me $1.80 PSF. That means I am effectively renting from myself at less than half the market rate. That is value.
The $3 million opportunity cost
If I had gone for the condo, I would be putting an additional $6,000 a month into a non-productive asset. At 4% annual returns over 25 years, that is an opportunity cost of over $3 million in lost investment growth.
Step four: retirement strategy with CPF
Thanks to the lower upfront cost of the HDB, I could cover most of the downpayment myself, my wife could transfer her CPF OA to SA, and she hit the Full Retirement Sum early. This means we have taken "right-sizing" and "asset progression" off the table. No future stress. No forced downsizing. We will just live here long-term and enjoy life.
The three rules I followed
- Keep your mortgage low. Channel excess cash into compounding assets from day one.
- Your home is not an investment if you live in it. It is a lifestyle expense with opportunity costs.
- Buy for your needs, not your ego. Run the numbers. If a condo doesn't make financial sense, it is okay to walk away.
This decision made sense for me and my family. It aligned with our lifestyle, values, and long-term financial goals. It might not work for everyone, but if you are thinking about housing and retirement in Singapore, I hope this gives you something useful to think about.
P.S. The government has done well regulating BTO prices. But remember, resale HDB prices follow market forces, and rising affluence means they are likely to climb. That is not policy failure. It is economics.