Why Are Young Singaporeans Snapping Up Old HDB Flats???

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In the past year, we’ve seen a renewed surge of interest in younger couples who are buying older (40+-year-old) HDB flats. This runs contrary to attitudes from five years ago when HDB flats were often criticised as “99-year time bombs” (and let’s not even get into the debate over whether flats are “really just rented”!) But why is it happening? Here are some possible reasons:
- High homeownership rates reduce legacy needs
- HDB flats depreciating slower than theories suggest
- Trending gentrification
- The oldest flats tend to be bigger (for 5-room flats at least)
- Changing perspectives of flats as assets
- Optimism about flats being just a temporary home
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00:00 - Intro
00:56 - High homeownership rates reduce legacy needs
03:20 - HDB flats depreciating slower than theories suggest
04:34 - Desire for authenticity
05:45 - The oldest flats tend to be bigger
06:35 - Changing perspectives of flats as assets
07:39 - Optimism about flats being just a temporary home
09:54 - Outro
Cover image credit: / limliakstories
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Пікірлер: 97

@StackedHomes Жыл бұрын

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@terence3908 2 жыл бұрын

My perspective is that older HDB flats are attractive in terms of space, location, convenience, and most importantly they are much more affordable vis-a-vis other alternatives. A condo that ticks those checkboxes would easily cost >1.8m, while BTOs on the other hand have other shortcomings (limited in choices and availability, longer wait times, income ceiling and etc). If you put less emphasis on the investment aspect of your property and focus more on day-to-day living, I think older HDBs are a good choice. There's also a certain charm you get from older properties

@StackedHomes 2 жыл бұрын

Well said Terence!

@mesmeriz3 2 жыл бұрын

excellent video and i agree with the points mentioned. young families these days are about self expression, wanting more space to accommodate hobbies/activities/personal belongings like yoga/home gym/walk-in wardrobe. in the past these ideas werent that common.

@StackedHomes 2 жыл бұрын

Well said!

@h.l6849 2 жыл бұрын

Have a 3bd rm condo (currently rented out) and a hdb EM (for stay). Seriously love my EM, due to the space and conveniences of an old estate. Several Coffee shops, and supermarket just a stone throw away, no need to drive. etc while condo has facilities, quite meaningless to me since i almost never use them anyway.

@StackedHomes 2 жыл бұрын

Thanks for sharing!

@Potomacstud 2 жыл бұрын

This is one of the most important channel in Singapore Housing matters..superb

@StackedHomes 2 жыл бұрын

So nice of you to say that! Thanks!

@homeforthree 2 жыл бұрын

This is a good video. As someone who is living in a 121sqm flat within the inner city ring and thinking of an upgrade … i can’t find it in me to justify the price of a condo of either the same or larger size and what’s worse is that a lot of condos out there have extremely shoe box size kitchen unlike hdbs! I’m even thinking of upgrading to a jumbo/maisonette as I would still have savings for my old age rather than dumping all into a, say, 999/freehold condi

@StackedHomes 2 жыл бұрын

Very valid points. The quality of life is not something you can buy back because we only get older. It's important to spend on what really matters to you and not the status or investment value if that's not important to you at all 👌

@h.l6849 2 жыл бұрын

Retiring in hdb would be better choice from financial pov. Can unlock the assets for comfortable daily spending and at the same time enjoy some of govt grants/aids/subs.

@commieskungflu1635 2 жыл бұрын

What’s this size in square feet? I’m not familiar with square meter, as haven’t bought HDB before. The private market uses square feet.

@h.l6849 2 жыл бұрын

@@commieskungflu1635 i assume u r refering to 121 sqm. That's slightly larger than 1300sqft.

@charlesfoo1698 4 ай бұрын

Nice analysis. Can you share what is likely to happen when the 99yr lease is running out? Any examples to share?

@chaangru 2 жыл бұрын

Totally agree with pt 5. Great video.

@StackedHomes 2 жыл бұрын

Glad you enjoyed it!

@vbsc8822 2 жыл бұрын

Straight-up information with both objective and subjective views. And yeah, I agree with your last advice, buying a home with permanent tenancy instead of seeing it plainly as a trade investment. So you don't get personally caught up with emotions when the market price doesn't meet your expectations.

@StackedHomes 2 жыл бұрын

Thanks for watching! Yes, many are seeing a home as a home - especially for these older flats!

@user-um8wi5ym4y 2 жыл бұрын

Depend on individual preferences but I'm not a fan of bathroom in the kitchen + bathroom so far away from the common rooms (4S, 4I & 4NG etc.). Also older flats, especially those built in the 1980s and earlier, have tiny bathrooms with no dry/wet areas i.e. shower stalls.

@StackedHomes 2 жыл бұрын

Thanks for sharing! Very valid points! Hope that those looking at old flats read this 🙌

@newsteadyjlf76john47 2 ай бұрын

been looking for someone to convince me if worth getting older HDB, and you just did it. ya, world, policies, lifestyle, needs, wants have changed. we need to adapt. thank you so much for your in depth sharing. Great contents

@StackedHomes 2 ай бұрын

You're welcome! We're thrilled our content helped you find clarity. 😊

@ryanyoutube7315 2 жыл бұрын

Near city too. 4rm hdb is 136sqm. Shhhhh… And somewhere near sells $0.50 charcoal brewed kopi. Affordable meals. Near the beach, near the marina barrage ;)

@StackedHomes 2 жыл бұрын

😂

@syakila4959 2 жыл бұрын

4rm 136sqm??!!! OK lets go propertyguru stat!!

@contrarian2496 2 жыл бұрын

You must be dreaming or gotten your measurements wrong. 4rm HDB at 136sqm doesn't exist, the largest 4rm HDB in SG are not even 110sqm, maybe you meant HDB with 4 full sized rooms, that's called Executive Apartment (EA).

@gz3540 2 жыл бұрын

i bought my 30 yrs old HDB 5 years ago for a very simple reason... it's cheaper and bigger! we considered BTO back then, but luckily we get a resale instead. we never treated out first home as investment, and rightly so. we just do full renovation to really make it a home, and the big size really paid off during covid where we can just hide inside our home for days or even weeks!

@singaporefoodreview9591 2 жыл бұрын

Same here. Coz I found an old HDB resale I foresaw myself living long term, even in contrast to my parents sea view apartment. this hdb is defo much bigger and super retirement feels (spacious, airy, quiet, with nature around) love it ❤️

@StackedHomes 2 жыл бұрын

Thanks for sharing your thoughts!

@veejeeloo4280 2 жыл бұрын

thanks for sharing

@pyt6631 2 жыл бұрын

The glass is half empty - most old flats still have more than half of their paper lifespan left! 😂 Also, CPF and HDB rules manage the situation by allowing CPF usage when remaining lease + buyer age is min 80 so if one uses CPF for the purchase, whatever old flat it is, it's young enough. HDB wise, when they kids have their own HDB , they can't keep the inherited HDB anyway.

@StackedHomes 2 жыл бұрын

True! Thanks for sharing!

@dessertspring6206 2 жыл бұрын

So Singaporeans (married or single) can only have one HDB flat under lease? What happens when an old couple both passed away in their 50s, leaving a 40y lease tenure HDB apt unoccupied, HDB will purchase the flat back from the couple’s children ?

@mohamedjahangir9522 6 ай бұрын

Whatever you said is the same thing i told my wife. Nice video.

@hentie5371 2 жыл бұрын

I will buy a house as a home. If I am certain that I won't move around after this purchase, I would buy an old flat just enough to age with me, to save the premium on other stuffs.

@StackedHomes 2 жыл бұрын

That's a goos way moving forward!

@Gamebred-Nightmare 2 жыл бұрын

Can the audio be more crisp? A bit muffled

@StackedHomes 2 жыл бұрын

Thanks for your feedback! Will let the video team know about this 👌

@don-ent8272 2 жыл бұрын

People goes with resale because they cannot wait for bto.

@Kalimatullah_Yoh1-1.14 2 жыл бұрын

btw how many think that selling the hdb back to gamen for extra retirement income is good option?

@h.l6849 2 жыл бұрын

How old is the flat? Personally i am sceptical abt older flats (50 and above) to cont to appreciate over the next 20years. So to sell back to the govt at current valuation and get a monthly payout, to me is a good idea if there r no intention to leave it to his/her children.

@clairvaux8459 2 жыл бұрын

Has anyone ever wanted to have their child to inherit their home? Seems an odd thought when the 99-year lease prevents that anyway 😂 It's always been crazy to me that some see homes as an investment and the need to constantly upgrade and cash out from appreciation. I would only be able to purchase my own home at 35 and I'd rather try to find a permanent home (or at least semi-permanent, a couple of decades) than play the long investment game and hope it pans out.

@StackedHomes 2 жыл бұрын

That's a much better way to look at your HDB. But a lot of people see it as - if they are paying a large chunk of their wealth over their life, why should it go back to the government? But this is the harsh reality we face.

@lzh4950 2 жыл бұрын

Actually my grandmother wanted me to inherit my parents' home but I've different design preferences & my parents don't agree also. Seeing how complicated home renovation can be I also imagine it'll become an added work if you change houses more frequently

@redbloodedwoman79 2 жыл бұрын

Beware of buying old hdb resale. I bought a 43yo hdb resale early last year thinking to spend the rest of my life here. Put in money to do up the reno for the whole flat. And what happened.. A news broke out 1 day ago, the flat will be undergoing SERS! The compensation is not enough to cover back my sentiment for the location and the reno cost. Btw, i m in my 40s. Considering the financial consequences I have to face, it is really unnerving.

@StackedHomes 2 жыл бұрын

Thanks for sharing your thoughts! To be fair, overall you should still gain as the asset value of the new flat provided would be a lot higher since there is a fresh lease. But definitely the inconvenience is there! We didn't cover SERS as an issue when buying old flats because we do think some people actually buy old flats with the added bonus of having their home selected for SERS later on too since the compensation is generally enough + the new lease. SERS projects also tend to be very sought-after!

@singaporefoodreview9591 2 жыл бұрын

Wow dam insightful points

@StackedHomes 2 жыл бұрын

Thank you!

@aosika4155 2 жыл бұрын

well said bro

@StackedHomes 2 жыл бұрын

🙌

@ganhaithong2097 Ай бұрын

But many youngster doesn't know which are right one to buy. Some just follow listen what their friends tell them . 🥴😵‍💫

@StackedHomes Ай бұрын

It's important to do your own research and not just follow friends' advice. 😊

@aissws 2 жыл бұрын

Bruh ryan is so smart 🥹

@StackedHomes 2 жыл бұрын

One of the best in this field in SG. So glad to have him with us.

@sherwinh1661 2 жыл бұрын

is HDB really considered owning a home? r just long term renting

@StackedHomes 2 жыл бұрын

It's kind of in the middle. You are able to do certain things like a typical homeowner can - such as selling your home or leasing out. YET, you are confined to certain rules like having to make certain applications or can't sell it within 5 years of the MOP, or not being able to vote for an en bloc 👀

@LordBagdanoff 2 жыл бұрын

Cause Bto layout is like crap and most these days just buy to make money after it MOP. Even a 3 room resale flat looks bigger than a 4 room Bto.

@BeOutstanding 4 ай бұрын

2:00 Around 90% of Singaporeans are home owners???

@mirelleong3370 2 жыл бұрын

With the divorce rating going higher and higher, we should also bear in mind worse case scenarios such as buying a 50 years old flat. When you divorce in 10,15 years or even later and you have to sell your 20 year old or less lease remaining matrimonial home. You will be in deep trouble hahaha

@LordBagdanoff 2 жыл бұрын

By then will SER so don’t need to worry

@stevenheng3336 2 жыл бұрын

Younger people are getting richer 😁 as older units need more renovation and now 3rm or 4rm are easily going for cool $90k and they will say they not taking it as 'investment'.. frankly I couldn't afford at all... 👍

@StackedHomes 2 жыл бұрын

Good point! Yes many of them don't see this as their investment. They're putting their investments elsewhere. Now with Robo-advisors which makes it easy for people to invest (unlike last time!) and the rise of Crypto, many see these old HDBs as more of an improvement in their quality of life, while they focus on making money elsewhere through career and investments.

@haku86 2 жыл бұрын

Flats don't go for 50k anymore... margins for returns are not going to be like in the past

@ifuknjk 2 жыл бұрын

bought older hdb 5-room flat @ bukit merah 4 $520,000.00 in 2020...2022 worth $620.00 close to chinatown n orchard road mrt, buses n kepple golf club... in faber reserve ....similar 1300 sq. feet condo is worth $1.800,000.00...wat not to like...I can hear birds singing in reserve.....

@ifuknjk 2 жыл бұрын

@@norman6499 sgoreans r never satisfied ...even though 88% owned hdb... hdb r subsidised n part by cpf... NOT to make a profit.......older flats served its owners for 50+ years...unlike hong kong... sporeans r very lucky to like in BIG flats ... so don't complain too much... if u prefer buy private condos.

@norman6499 2 жыл бұрын

@@ifuknjk whos complaining? Your own inner voice?

@ifuknjk 2 жыл бұрын

@@norman6499 me? complaining ?...I m so lucky living in a subsidised old hdb 1,300 sq. feet ...close to orchard road , mrt, markets etc... how great is that !.. bless pap govt

@ifuknjk 2 жыл бұрын

@@norman6499 go away

@norman6499 2 жыл бұрын

@@ifuknjk yes sir

@gotmyonu1027 2 жыл бұрын

I guessed younger generation probably can afford the taxes needed to pay for resale flats.

@StackedHomes 2 жыл бұрын

😂 To be fair, HDB taxes based on annual rental is quite affordable!

@gotmyonu1027 2 жыл бұрын

@@StackedHomes Good to know... Thanks

@ganhaithong2097 Ай бұрын

Cause nowadays younger people are no longer like before. Many want to live independently before marriage, move out from their parents. house. Some younger people doesn't want to rent or wait for long new flats. Making them buy resale.

@StackedHomes Ай бұрын

Independent living is becoming more popular among the younger generation.

@17teeth 6 ай бұрын

Older flats doesnt mean bigger. A bto 4 room is bigger than old hdb 4S flat. 😂 old hdb flats comprises alot of models.

@StackedHomes 6 ай бұрын

There's a diversity of options and layouts to consider. 😊

@jimbaranresidence8 2 жыл бұрын

Tiong bahru area n boon tiong rd r GOLD MINE living residential area, the rest surrounding IT r cemetery graveyard! History way back WW2 fact.

@StackedHomes 2 жыл бұрын

😱😱😱

@user-kk8hq4ob1w Жыл бұрын

new flat design not feel right .....aftet stay in it was not a good experience.

@StackedHomes Жыл бұрын

What was your experience like?

@cybergod77 7 ай бұрын

Is HDB supporting all these million dollar flats with their valuations?

@jasonong7097 2 жыл бұрын

So that they can buy cheap and spend very big on reno.

@commieskungflu1635 2 жыл бұрын

Your assessment is not objective if you base on Tiong Bahru. Tiong Bahru is the oldest but it also happens to be located on the fringe of downtown. So it just happens the oldest HDB to have its lease decayed has this special location. Wait till the millions of old flats in the next batch - Toa Payoh and Ang Mo Kio in these outlying towns further from downtown reach their lease decay en masse.

@StackedHomes 2 жыл бұрын

Thanks for sharing! We're also wondering how things would play out there!

@contrarian2496 2 жыл бұрын

Agreed. Of all HDB locations, Tiong Bahru is certainly amongst the most prime location and given its higher chances of En-Bloc it hedges any effects of lease decay which is why even flats with less than 50 years lease are able to transact above $1M in Tiong Bahru, most HDB estates don't enjoy such prime location and faces price depreciation even before the 10 year mark. Hence there's a correlation between location and price depreciation of lease decay, the further away from city centre, example Punggol/Sengkang/Jurong/Woodlands, the earlier their price depreciation. The only saving grace for faraway located HDB against an early price depreciation is that it has to be significantly larger in size compared to typical BTO sizes (i.e jumbo, EA, EM units). The worst units for price appreciation are those faraway HDB built after year 2000 with similar sizes to typical BTO, because buyers expect older HDB to be larger, but when the sizes are similar they will then prefer the newer crop of BTO hence the lack in demand is unable to negate the effects of price depreciation. In summary, price appreciation of old HDB is certainly possible when the location and flat-type are still highly in demand, which is exactly what's happening to the booming property prices in Tiong Bahru.

@commieskungflu1635 2 жыл бұрын

@@contrarian2496 Punggol is in the same ulu score as Jurong and Woodlands, but not Sengkang. Sengkang is sandwiched between Ang Mo Kio and Hougang. Go look at the map. How do you expect Punggol to have large sized HDBs compared to typical BTO sizes when Punggol is one of these new BTO towns?

@commieskungflu1635 2 жыл бұрын

@@StackedHomes I feel that Stacked Homes, at least in its video production, focuses too much on HDB lease decay and too little on the same issue plaguing the majority of condo buyers, since most condos are 99 year lease as well. How many of your viewers are knowledgeable enough to know that while no HDB has reached the end of its lease yet, there’s already been private property that reached the end of the lease and the land of those properties really was RETURNED TO THE GOVERNMENT? It’s so common to come across super SuaGu responses from Singaporeans, when you tell them that 99 year leasehold condo buyers face the same lease decay issue, they say those buyers can just “wait for en bloc”, as if every private property gets en bloc 🤣🤣🤣 Stacked homes wrote a great informative article on this, spotting what kind of condos actually have a chance of being en bloc (the ironic thing is, most en bloc actually go to freehold condos, even though 99 year leasehold condos need it more). It would be good if you did a video for it.

@lzh4950 2 жыл бұрын

@@contrarian2496 Also interesting is how some regions may be less prime than others equidistant from downtown e.g. Tiong Bahru vs Beach Rd Garden

@bf.258 2 ай бұрын

Perhaps the saying "Let's BTO" is no longer cool...

@StackedHomes 2 ай бұрын

Haha, trends change! Thanks for sharing your thoughts. 😊

@syakila4959 2 жыл бұрын

And I still cant convince myself to get a 20yo flat.

@StackedHomes 2 жыл бұрын

😂 20 is not bad! Once you let go of that fear of depreciation and accept that a house is a home, it's much easier. Cheaper too.

@syakila4959 2 жыл бұрын

@@StackedHomes fear of depreciation. That is it. Thank you for your words. ☺️

@contrarian2496 2 жыл бұрын

Depending on the location, even a 10+ years old flat can depreciate in value especially in non-mature estates. If I'm going for 20+ years old flat I'll look at the ones in mature estates, some mature estates have a median age of about 25 years old for all its HDB hence 20+ years old flat in those locations isn't considered old and it's still able to utilise the maximum CPF. If your concern is price depreciation then you should be considering desirable locations like Tiong Bahru where buyers are still paying $1M for a less than 50 years remaining lease flat, such locations where demand is high will enable it to hedge the effects of price depreciation.