Can I Afford to Upgrade from HDB to Condo in 2025?
Upgrading from an HDB flat to a private condominium is a big financial leap — and one of the most common questions we get at PropertySpaceSG is: “Can I actually afford it?”
In 2025, with rising interest rates, evolving government policies, and increasing property prices, it’s more important than ever to assess your financial readiness before making the move. This guide breaks down the essential affordability factors you must consider before upgrading to a condo in Singapore.
1. Understand the Minimum Requirements for HDB Upgraders
To buy a private condo in Singapore after owning an HDB, you must first complete your Minimum Occupation Period (MOP), which is usually five years from key collection. Your HDB loan must be fully repaid before you can legally purchase a private property. You also need to prepare a minimum down payment of 25% of the condo price, of which at least 5% must be in cash. If your HDB is not sold before you buy a condo, you may also be subject to Additional Buyer’s Stamp Duty (ABSD).
These are non-negotiable requirements. Not meeting them could delay or block your upgrading plans.
2. Calculate Your Total Condo Budget Carefully
Assessing your affordability starts with knowing how much you can borrow and how much you can pay upfront. Your available cash savings and CPF OA balances will form the basis of your down payment and stamp duties. Your loan eligibility depends on the Total Debt Servicing Ratio (TDSR), which caps monthly repayments at 55% of your gross monthly income. Based on this and current interest rates (approximately 4% in 2025), calculate how much you can borrow and what your monthly repayments will be.
Use mortgage calculators or speak to a broker to simulate different price points. Set a realistic budget ceiling to avoid financial stress later.
3. Don’t Forget the Upfront Costs When Buying a Condo
In addition to the down payment, you must budget for several upfront expenses. These include Buyer’s Stamp Duty (BSD), legal and valuation fees, and possibly ABSD if your HDB isn’t sold. Home insurance and renovation costs should also be considered.
For example, a $1.5 million condo purchase could require more than $375,000 in upfront funds if you’re buying before selling your HDB.
4. Factor in Monthly and Ongoing Costs for Condo Owners
Your monthly condo ownership costs extend beyond the mortgage. These include monthly maintenance fees, which vary by project and range between $250 and $600, property tax based on the annual value of your unit, insurance premiums, and utilities. Larger units or those with full facilities may incur higher running costs.
Ensure your total monthly financial commitments are manageable in the long term.
5. Sell First or Buy First? Strategize Your Upgrade Wisely
One key decision is whether to sell your HDB before or after buying the condo. Selling first allows you to avoid ABSD, unlock CPF and cash for your purchase, and reduce loan obligations. However, it may require you to find temporary housing. Buying first secures your preferred unit but requires higher upfront funds and the ability to manage two properties temporarily.
Plan your transition carefully to minimise disruptions and financial pressure.
6. New Launch vs Resale Condos: What’s More Affordable in 2025?
New launch condos are usually sold during construction and follow a progressive payment schedule, which helps reduce the initial financial burden. They often come with modern designs and new facilities but tend to be more expensive per square foot.
Resale condos offer immediate availability, larger layouts in mature estates, and room for price negotiation. They’re ideal if you need to move quickly or want more space.
Each option has pros and cons — the right choice depends on your budget, timeline, and goals.
Final Thoughts: Yes, You Can — With the Right Planning
Can you afford to upgrade from your HDB to a condo in 2025? The answer is yes — if you plan it right.
From budgeting and loan calculations to property selection and ABSD strategies, there’s a lot to think about. But with the right advice and a step-by-step approach, upgrading can be financially achievable — and deeply rewarding.
Want help reviewing your numbers? Feel free to reach out to us!