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|August 21,2025Should You Sell or Rent Out Your HDB After Upgrading?
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You're finally upgrading. You've got the keys to your new condo and you're ready to settle in. But there's still one thing lingering in your mind: What should you do with your old HDB flat?
Should you sell it right away? Or maybe it's better to rent it out?
Well, the answer is not so black and white. Because depending on the current market and your property goals, you might prefer one over the other. So which one is for you? Let's break it down.
Why you'd want to sell
For many people, selling is more simple. It's a clean break, so you won't have to think about managing your old flat. But more importantly, you can avoid paying a hefty Additional Buyer's Stamp Duty (ABSD) that applies to your second property.
Current rates are 20% for Singapore Citizens and 30% for Singapore Permanent Residents. But if you sell your HDB flat within six months of the condo purchase, you may be eligible for a remission. You can click here for more details on stamp duties and remissions.
Selling also gives you more flexibility in financing your condo. If you're holding two properties, banks will only let you borrow up to 45% of your condo's value. But if your HDB is sold, you're back to the standard 75% loan-to-value (LTV) limit.
And don't forget about CPF. If you've used your CPF to finance your flat, you'll need to refund not just the principal, but also the accrued interest. So the sooner you sell, the less you have to pay back. But more on that later.
The most intriguing part about selling is probably the cash you'll receive. Whether your HDB is fully paid off or still under mortgage, chances are it has appreciated since you bought it. You can use that capital and put it towards your condo mortgage, emergency fund, or other investments.
Trade offs
While the resale market was hot a few years ago (around 2022), things have started to cool down. Right now, prices are softening due to higher interest rates and tightened loan limits among others. Plus, with the 15-month wait-out rule, the market is kind of subdued.
In Q4 2024, resale HDB price growth rose by 2.6% QoQ. But by the next quarter, it slowed to just 1.6%. This was the slowest it's been since Q42023. And it appears that this trend will continue at this pace throughout the rest of the year.
Then, there's resale levy. If you ever plan to downgrade in the future, specifically for a subsidised HDB flat, you'll have to pay up to $50,000 depending on your flat and ownership type.
Of course, that is not to say that you shouldn't sell your flat solely because of these reasons. If the benefits outweigh the drawbacks, then by all means, go ahead. Just make sure you are well-informed before you make your decision.
Passive income
Once you've fulfilled your Minimum Occupation Period (MOP), HDB allows you to rent out your entire flat after moving to a private property. This makes for a good passive income, which can help cover your new mortgage or even upgrade your lifestyle.
Rental demand is still relatively healthy (despite growth slowing down), especially those in mature estates and central locations. Generally, a gross rental yield of five to seven per cent is expected. Here's how 4- and 5-rooms performed in the past year.
4-room performance August 2024 - August 2025 | ||||
| Towns | Average rental psf | Average rental price | Average purchase price | Gross rental yield |
| Ang Mo Kio | $3.27 | $3,290 | $684,220 | 5.77% |
| Bedok | $3.16 | $3,171 | $633,348 | 6.01% |
| Bishan | $3.25 | $3,480 | $770,753 | 5.42% |
| Bukit Batok | $3.02 | $3,174 | $612,415 | 6.22% |
| Bukit Merah | $3.84 | $3,802 | $877,235 | 5.20% |
| Bukit Panjang | $2.81 | $2,954 | $576,937 | 6.14% |
| Bukit Timah | $3.46 | $3,670 | $841,834 | 5.23% |
| Central Area | $4.31 | $4,236 | $1,088,592 | 4.67% |
| Choa Chu Kang | $2.71 | $2,993 | $552,725 | 6.50% |
| Clementi | $3.79 | $3,757 | $788,364 | 5.72% |
| Geylang | $3.43 | $3,507 | $798,278 | 5.27% |
| Hougang | $2.94 | $3,127 | $625,197 | 6.00% |
| Jurong East | $3.15 | $3,285 | $552,906 | 7.13% |
| Jurong West | $3.09 | $3,250 | $548,742 | 7.11% |
| Kallang / Whampoa | $3.63 | $3,639 | $860,770 | 5.07% |
| Marine Parade | $3.65 | $3,345 | $630,308 | 6.37% |
| Pasir Ris | $2.79 | $3,169 | $636,707 | 5.97% |
| Punggol | $3.20 | $3,189 | $670,764 | 5.71% |
| Queenstown | $4.04 | $3,986 | $937,511 | 5.10% |
| Sembawang | $3.01 | $3,045 | $625,544 | 5.84% |
| Sengkang | $3.10 | $3,095 | $652,797 | 5.69% |
| Serangoon | $3.22 | $3,384 | $665,586 | 6.10% |
| Tampines | $3 | $3,272 | $678,880 | 5.78% |
| Toa Payoh | $3.55 | $3,523 | $892,855 | 4.73% |
| Woodlands | $2.79 | $2,939 | $557,193 | 6.33% |
| Yishun | $2.94 | $3,025 | $559,632 | 6.49% |
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