Housing development board flats, HDB for short, have been around for decades. In fact, more than half of Singapore’s population are housed in this type of accommodation. With Singapore’s economy further expanding to impressive heights, thanks mainly to its well-executed government policies and strong business and finance sectors, it makes strategic sense to buy HDB flats with more than hopeful anticipation of its value significantly increasing in the near future.
What are HDB Flats?
Before discussing the benefits of buying and owning this type of property in Singapore, let’s first cover what it actually means. HDB flats are public housing that is facilitated by the Housing and Development Board hence its given name. HDB flats are free-standing satellite towns that are in close proximity to schools, healthcare centres, supermarkets, sports stores, and so forth.
As an investment property, HDB flats for sale in Singapore are in great demand. There is also a huge variety of flat configurations that cater to different renter and buyer budgets. In general, however, most flats are built to offer affordable accommodations to the poor. If you are eligible, you can also get financial aid from the Central Provident Fund. This can be difficult if not impossible to secure for expatriates who are not Singaporean citizens or do not meet any of the other eligibility requirements imposed by governing bodies.
Both the physical and management structure of an HDB flat may vary. For instance, there are flats that implement a Married Child Priority scheme while others have a Multi-Generation Priority scheme. Knowing the types of schemes governing your prospected flats can save you both the time and money from searching for incompatible housing options.
HDB flats for sale are distributed to interested buyers through several sales programs. Currently, there is a Build-to-Order sales program, which was implemented back in 2001, wherein approved applicants for new Build-to-Order flats will usually incur a waiting period of a few years while the flat is being built. Construction of the building can only commence once at least 65 percent of the sales are attained.
Covering this first is essential since it dictates whether or not you can actually start shopping for HDB flats. Interested buyers and owners should be a Singaporean citizen or at least have one family member who is a citizen. You must also be at least 21 years of age. Your family nucleus must also incorporate the following accepted combinations – applicant with spouse and children, applicant with parents and siblings, widowed or divorced applicant with children under legal custody, applicant with fiancée, and/or applicant wherein both parents are deceased and have unmarried siblings.
Whether as an investment property or a housing for you and your family, HDB flats are an affordable and versatile choice for housing in Singapore. While the legal process can take significant amounts of time to complete, the promising future valuation of HDB flats make it a meaningful stake.