When we mention public housing, the first thing that comes to mind are high-rise Housing Development Board (HDB) apartments in the heartlands. But did you know that HDB flats aren’t the only housing type that the Government has built? Some of the more well-known, discontinued flat types include the HDB jumbo flat, DBSS flat and HUDC flat. In addition to those, once upon a time, HDB also built landed HDB terrace houses as well.
What Are HDB Terrace Houses?
HDB terrace houses were built in the 1950s by the Singapore Improvement Trust (SIT). SIT is the predecessor of HDB and took care of public housing before HDB was born. The British colonial government created SIT to address Singapore’s early housing needs.
During the SIT era, they developed these HDB terrace houses as one of the public housing options for Singaporeans. In total, 285 HDB terrace houses were built in Whampoa and Queenstown area. Each of them has about 900 sq ft of living space that spans across two storeys.
When HDB came into existence, they took over the HDB terrace houses from SIT in the late 1960s and early 1970s. That was when the HDB terrace houses were issued with a fresh 99-year lease. Today, the HDB terrace houses in Queenstown (lease started in 1968) are left with 46 years of lease, while the HDB terrace houses in Whampoa (lease started in 1972) are left with 50 years of lease.
HDB Terrace Houses vs Landed Property vs HDB Flats: How Are They Different?
HDB terrace houses look just like any other landed property on the outside. However, they aren’t exactly the same as their private counterparts.
All HDB Terrace Houses Are Leasehold
Unlike private landed properties, none of the HDB terrace houses is freehold. Instead, they have a 99-year lease, just like any other HDB property. As such, the government is entitled to take back the land once the 99-year lease is up.
HDB Terrace Houses Have “Block Numbers”
If you look closely, you will notice a distinct and observable difference that resembles an HDB block number at the side of the walls. These HDB terrace houses share the same HDB block plate that you see on old HDB flats.
HDB Terrace Houses Have No Private Parking Space
Another key difference is that unlike most private landed houses, HDB terrace houses do not have their own car porch. Owners of HDB terrace houses have to park at HDB carparks, just like any other HDB flat owner.
What About When Compared to HDB Flats?
As seen above, HDB terrace houses and flats have a lot in common. But since they’re houses (as opposed to high-rise apartments), when it comes to practical living, HDB terrace houses feel more similar to a landed property than an HDB apartment.
How Much Do HDB Terrace Houses Cost?
The price of HDB terrace houses ranges between $680,000 and $1,168,000. But it’s not rare for them to cost much more. In fact, in June 2021, an HDB terrace house in Whompoa was sold for $1.268 million, making it the most expensive resale HDB flat to change hands so far.
There are a few factors that affect the price of an HDB terrace house, including the size, remaining lease, location and condition (furnishing/renovations).
Size
Generally, the bigger the HDB terrace house, the more it costs. While HDB terrace houses aren’t amongst the biggest flat types available, don’t forget that they’re landed properties that come with a backyard also, and hence have a bigger built-up area.
Remaining Lease
Conventionally, the shorter the lease, the lower the cost. That’s because, as the lease slowly runs down, the value of the HDB terrace house also goes down.
Location
While there are only a few areas where HDB terrace houses were built such as Queenstown and Whampoa, the desirability of the location still varies. For instance, the HDB terrace house that was recently sold for $1m was located within a few minutes’ walk to the Queenstown MRT and amenities like Queenstown swimming complex and sports complex. This makes it much more sought-after and thus leading to a higher price tag.
Condition (Furnishing, Renovations, etc.)
Last but not least, the condition of the HDB terrace house also plays a part in the price of each unit. When you have an HDB terrace house that is decorated to the nines and look like it is magazine-worthy, it is no wonder why the valuation of the home is being propped up.
Why Do Homebuyers Pay So Much For Old HDB Terrace Houses?
While conventional wisdom tells us that you shouldn’t be paying so much for HDB homes with expiring lease, it might not apply for old HDB terrace houses. Here’s why homebuyers might be willing to pay so much for old HDB terrace houses.
Firstly, HDB terrace houses are rare and offer homebuyers a chance to own a landed property at a much more reasonable price. Thus, homebuyers are willing to pay for the exclusive living experience that comes with each HDB terrace house.
The second and more likely reason is that homebuyers could be looking for an en bloc windfall. HDB has a redevelopment scheme known as the Selective En bloc Redevelopment Scheme (SERS), which began in 1995. SERS typically target sites where the land has not been well utilised and has good redevelopment potential. HDB terrace houses fall into this category of land that has not been well utilised. Imagine how many more HDB apartments could have been built on the land that currently only house one HDB terrace house unit.
6 HDB Terrace Houses Under $1 Million
For those who are interested in snapping up an HDB terrace house, here are some of the reasonably priced ones that are below $1 million.
Check out all the HDB terrace houses that are listed on PropertyGuru here.
1. 42 Stirling Road
| Price | $940,000 |
| TOP | 1968 (46 years left on lease) |
| Size | 1,284 sq ft (three bedrooms, one bathroom) |
| Nearest MRT station | Queenstown MRT |
This unit at 42 Stirling Road is located in Queenstown and has 46 years of remaining lease left. It comes with three bedrooms and has an area of 1,284 sq ft. It’s also only 350m away from Queenstown MRT station, and is surrounded by a good range of amenities.
Check out this HDB terrace house unit at 42 Stirling Road on PropertyGuru
2. 48 Jalan Bahagia
| Price | $800,000 |
| TOP | 1959 (37 years left on lease) |
| Size | 840 sq ft (one bedroom, one bathroom) |
| Nearest MRT station | Boon Keng MRT |
48 Jalan Bahagia is a 1-bedroom HDB terrace house that is being sold at $800,000. According to the listing, the two-storey house originally has two bedrooms, however, it has been converted into a 1-bedroom with a study area (but can be reconverted back into two bedrooms). The home has also been renovated to feature an open space concept for a breezy feel.
Check out this HDB terrace house unit at 48 Jalan Bahagia on PropertyGuru
3. 58 Stirling Road
| Price | $820,000 |
| TOP | 1959 (37 years left on lease) |
| Size | 850 sq ft (two bedrooms, two bathrooms) |
| Nearest MRT station | Queenstown MRT |
58 Stirling Road is another 3-bedroom HDB terrace house located on the same road as the unit at 42 Stirling Road in the Whampoa estate (see above). It has been renovated so there’s an additional bathroom downstairs. However, this HDB terrace house has a shorter lease (37 vs 46 years), and is also smaller at 850 sq ft, which may explain the lower price.
Check out this HDB terrace house unit at 58 Stirling Road on PropertyGuru
4. 43 Jalan Bahagia
| Price | $930,000 |
| TOP | 1959 (37 years left on lease) |
| Size | 1,076 sq ft (three bedrooms, two bathrooms) |
| Nearest MRT station | Boon Keng MRT |
43 Jalan Bahagia is located on the same row as 48 Jalan Bahagia above. However, this unit has been renovated to have three bedrooms instead of two, as such, this unit may be more preferrable if you have a bigger family and need more bedrooms. However, note that this unit has a higher asking price of $930,000.
Check out this HDB terrace house unit at 43 Jalan Bahagia on PropertyGuru
5. 46 Jalan Bahagia
| Price | $900,000 |
| TOP | 1959 (37 years left on lease) |
| Size | 990 sq ft (two bedrooms, two bathrooms) |
| Nearest MRT station | Boon Keng MRT |
Just three units away from 43 Jalan Bahagia is 46 Jalan Bahagia. Although this unit is priced higher at $900,000, the owner has spent a significant amount on renovations to make the home both cosy and functional.
Check out this HDB terrace house unit at 46 Jalan Bahagia on PropertyGuru
6. 57 Jalan Ma’mor
| Price | $990,000 |
| TOP | 1972 (50 years left on lease) |
| Size | 990 sq ft (three bedrooms, two bathrooms) |
| Nearest MRT station | Boon Keng MRT |
57 Jalan Ma’mor has a land area of 990 sq ft and a build-up area of 1,220 sq ft. The unit has been renovated to have three bedrooms and the kitchen and bathrooms have been renovated to include new fixtures and fittings. However, at $990,000, this is the most expensive HDB terrace home on this list, but it also has the longest remaining lease left (50 years).
Check out this HDB terrace house unit at 57 Jalan Ma’mor on PropertyGuru
Could these six HDB terrace houses bring you closer to your landed property dream? Alternatively, if you are looking for more affordable HDB homes, perhaps you can consider these HDB apartments that are priced at below $400k. If you don’t mind the waiting time and want to opt for BTOs, be sure to also check out PropertyGuru’s BTO guide here.
Other FAQs on HDB Terrace House
What is an HDB Terrace House?
HDB Terrace houses are a type of landed public housing and are managed by HDB. They come in two storeys and a nice private garden. Built by the Singapore Improvement Trust (SIT) (the predecessor of HDB) in the 1950s, they were given fresh 99-year leases in the 1960s and 1970s when HDB took over. Today, there are only 285 HDB terrace houses remaining.
What Happens When the 99-Year Lease Expires?
Like ‘regular’ HDB flats, HDB terrace houses are 99-year leasehold properties. As such, they will be surrender to the government once the lease is up.
Can Singapore Permanent Residents Buy an HDB Terrace House?
Singapore Permanent Residents (SPR) looking to buy a landed property may need to get approval from the Singapore Land Authority (SLA).
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