“HDB Single Scheme” or rather, the HDB Single Singapore Citizen Scheme allows unmarried citizens 35 and above to buy an HDB flat on their own.
Regarding public housing, you typically have two options – buying HDB BTO flat or a resale flat. That’s why hitting 35 can feel like a major milestone. (Obviously, the HDB grant makes this endeavour affordable for most Singaporeans.
At 35, investing for the future, purchasing a home, family planning, retirement planning and others might feel more ‘real’ as your priorities may have changed at this stage of life. With the number of singles rising in Singapore, we might see a trend of more single Singaporeans purchasing homes on their own.
For those looking to establish a cosy bachelor pad or bachelorette, here’s a comparison between the new launch HDB BTO and resale flats.
Comparing Buying an HDB BTO Flat Vs Resale Flat for Singles in Singapore
Here’s a quick overview of what it’s like to buy an HDB BTO flat or resale flat as a single person in Singapore.
|
Factors |
HDB BTO Flat |
HDB resale flat |
|
Buyer age limitations |
35 years old |
35 years old |
|
Size and flat type |
Only 2-room Flexi flats in non-mature estates |
No statutory limitations |
|
Price |
More affordable; lower (Prices are subsidised by HDB, but buyers are limited to 2-room Flexi flats in non-mature estates) |
Mid to high (Buyers buy flats are market rate, can be in mature estates and not limited by flat type) |
|
Rental yield |
Can only rent out after 5-year MOP is fulfilled |
Can only rent entire flat out after 5-year MOP is fulfilled; can rent out rooms after MOP is reached |
|
Loan amount |
Within MSR limit |
Within MSR limit |
|
Government grants available |
Yes (up to $40,000) Enhanced CPF Housing grant |
Yes (up to $80,000) Singles Grant Enhanced CPF Housing Grant (EHG) Proximity Housing Grant (PHG) |
|
Minimum Occupation Period (MOP) |
5 years |
5 years |
Buying an HDB BTO Flat: Most Affordable Option
Under the HDB Single Singapore Citizen Scheme, singles above 35 years old are only eligible to apply for 2-room BTO flats in non-mature estates. Given this, the price is typically quite affordable as BTO flats are heavily subsidised and flats in non-mature estates are typically lower. Also, due to their smaller size, new BTO 2-room Flexi flats are also cheaper to renovate and furnish.
Related articles:
- 9 HDB Renovation Permits and Guidelines You Need When Renovating Your Home
- Renovation Contractor vs Interior Designer: Which Should You Pick?
- Renovation Loan in Singapore: Which Is the Best? (2022)
Moreover, a first-time buyer can tap on the Enhanced CPF Housing Grant (EHG) if eligible. Eligible homebuyers can get up to $40,000 in EHG to pay for their BTO flats.
Singles apply under the Single Singaporean Citizen Scheme or the Joint Singles Scheme (with up to 3 other singles). As with purchasing all HDB flats, there is also an income ceiling. The income ceiling to apply for a 2-room HDB flat is $7,000.
In terms of rentability, you can only do so after the MOP is fulfilled, as 2-room flats can only be rented out as a whole unit. This makes sense as 2-room flats are comprised of a bedroom, bathroom, a dining/living area and a small kitchen. But also means you cannot rent out any part of the 2-room flat for an income while living in it.
If you are interested, the upcoming BTO launches in May 2022 are in Bukit Merah, Jurong West, Queenstown, Toa Payoh, and Yishun. Alternatively, there is also the HDB SBF (Sale of Balance Flats) and Re-offer of Balance Flats (ROF) scheme for buyers who are unable to wait for a BTO.
Related article: HDB Balance Flat (SBF/Open Booking) or Resale Flat: Which Should You Buy?
Buying an HDB Resale Flat: More Flat Choices and Potentially More CPF Grants
Alternatively, singles above 35 years old are also eligible to buy flats on the resale market. Unlike buying a BTO flat, this does not come with any restrictions to the size, location or income ceiling.
Related article: 60 Freshly MOP-ed HDB Resale Flats in Singapore to Expect in 2022/2023
Since it is a flat on the resale market, the flat would be sold at the market rate which is typically higher than at the BTO price level. As these flats can also be in mature estates, prices may also be higher because of that. Currently, HDB resale flat prices are at a 20-month high.
The trade-off is that you are able to get the flat quickly, and have more options in terms of size and location of your unit. Unlike buying a BTO, where you may have to wait up to 62 months for the flat to be built and are restricted to 2-room flats in non-mature estates. It doesn’t help that the construction delays due to the manpower crunch brought on by the COVID-19 pandemic may extend this waiting time.
Nevertheless, first-time singles are also eligible to receive first-time housing grants when you buy a resale flat. Apart from the Enhanced CPF Housing Grant (EHG) which provides up to $40,000, you may also be eligible for the Single’s Grant and the Proximity Housing Grant (PHG).
The Singles Grant is for applicants under the Single Singapore Citizen Scheme. This means you are not eligible if you buy a resale flat jointly with other singles. The Singles Grant provides up to $25,000 (for 2- to 4-room resale HDB flats) and $20,000 (for 5-room resale HDB flats). Your income ceiling (with other occupiers) cannot exceed $7,000.
If your parents either stay with you or are living within a 4km radius of your resale HDB flat, you also qualify for up to $15,000 in Proximity Housing Grants (PHG).
Similarly, you have a MOP of five years before you can sell your HDB flat or rent the property out. If you have purchased a property larger than 2-room, you can rent out rooms in your property for income while continuing to live in it, even during the MOP.
Browse all HDB resale flat for sale on PropertyGuru.
Getting a Property Loan to Pay for Your HDB Flat
In addition to the Total Debt Servicing Ratio (TDSR), a Mortgage Servicing Ratio (MSR) of 30% applies for HDB BTO or resale flats. Set by the Monetary Authority of Singapore (MAS), this caps the borrower’s monthly loan repayment for their property to under 30% of their gross monthly income and any variable income such as from commissions and bonuses or side hustles.
Related articles:
- Singapore Property Cooling Measures 2021: What the Higher ABSD, Tighter TDSR, and Lower LTV Means For You
- Do Singaporeans Agree with the Latest Property Cooling Measures? How Many Are Affected?
- Property Cooling Measures (Dec 2021): How the New TDSR Affects You
The formula is [Monthly instalments for all property loans] / [Gross monthly income] X 100%. (Although technically, if you’re buying an HDB flat you shouldn’t have more than one property loan.)
If your monthly salary is $3,000 and you get an annual bonus of $3,000, your gross monthly income is $3,125 (because only 70% of the annual bonus will be considered). This means you can only utilise 30% of $3,125 for your home loan, which equates to $937.50.
For a better understanding, you can use PropertyGuru’s Affordability Calculator or speak to one of our home finance advisors for tailored recommendations for your buying decisions.
More FAQs about HDB Single Scheme in Singapore
Can I Buy HDB as a Single?
Yes, so long you are at least 35 years old, you may get a new BTO or resale flat.
How Much HDB Grant Can a Single Get?
You can get up to $40,000 under the Enhanced CPF Housing Grant.
Can Single Buy 3-room HDB Flat?
Yes, but you must be able to afford it and it will be a resale flat.
How Much Does a 2-room HDB Flat Cost?
Anywhere from $90,000 to $162,000 in a non-mature estate.
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