Singapore's property market is like a high-stakes diving competition - filled with breathtaking leaps, calculated risks, and the pressure to make the perfect entry. But this isn't just any event; it's a fierce showdown between two top contenders: HDB upgraders and first-time condo buyers.

Before we dive into the deep end, let's set the stage. In this property pool, it's not just about making the biggest splash - it's about technical precision, financial flexibility, and long-term strategy. Both divers must assess affordability, loan restrictions, and shifting government policies before taking the plunge. The challenge comes with TDSR (Total Debt Servicing Ratio) depth checks, ABSD (Additional Buyer's Stamp Duty) ripples, and resale market's unpredictable waves. And let's not forget - just because you've got the financial confidence to jump doesn't mean you'll stick the landing. The ability to navigate market cycles, leverage CPF wisely, and choose the right property will determine the real gold medallist.

In lane one, we've got the HDB upgraders - the seasoned divers who have taken the plunge before. They've built their foundation in public housing and are now aiming for a bigger stage: the private property "I've levelled up!", these experienced contenders are ready to make a splash. With sales proceeds from their HDB flats, a sharper understanding of financial commitments, and a strong desire to upgrade, they've got momentum on their side. But they also face the challenge of timing their exit perfectly - navigating sell-one-buy-one (S1B1) dilemmas, decoupling strategies, and the deep waters of larger mortgage commitments.

In lane two, the challengers: first-time condo buyers. These daring newcomers are skipping the HDB stepping stone and diving straight into private property. They're not wading in cautiously - they're chasing exclusivity, long-term investment potential, and yes, that private pool lifestyle. Armed with fresh loans, potential family support, and a bold appetite for risk, they're making their mark early. But will they keep afloat against rising interest rates, maintenance costs, and the financial discipline needed to sustain their position?

Fun fact: HDB resale prices have hit record highs in recent years, giving upgraders a bigger financial float to fund their next big move.

Source: CNA

Meanwhile, new private condo launches are seeing sky-high demand, with many young buyers snapping up smaller units to get their foot in the door.

Source: The Straits Times

So, who's got the edge in this ultimate property showdown? Whether you're backing the seasoned upgraders or cheering on the bold first-timers, this article is your front-row seat to the motivations, challenges, and strategies each diver brings to the plunge.

The starting whistle has blown. The high-stakes dive into Singapore's property market is underway. Who will execute the perfect entry, and who will make the biggest waves? Let's find out.

HDB upgraders are the experienced players in Singapore's property market, ready to move up the housing ladder. After spending years in their HDB flats, they're now looking for something more - whether it's better facilities, a prestigious address, or an investment opportunity. These buyers are a driving force in the market, especially with record-breaking HDB resale prices giving them more firepower.

Who they are

HDB upgraders can be grouped into two main categories:

• Family upgraders: Families seeking bigger spaces or better living environments. For them, private properties offer lifestyle improvements, such as larger homes, enhanced security, and access to kid-friendly amenities like pools and playgrounds.

• Lifestyle upgraders: Young couples or individuals aiming for convenience and exclusivity. Proximity to the CBD, top schools, or vibrant neighbourhoods plays a big role in their decision to upgrade.

Why they upgrade

• Facilities galore: For many, the lure of private property lies in its luxurious facilities - think private pools, fully equipped gyms, BBQ pits, and function rooms. It's a lifestyle step-up that HDB flats simply can't replicate.

• Investment goals: Beyond lifestyle perks, many upgraders view private property as an investment. While HDB flats do appreciate in value over time, they appreciate significantly slower than condos in the long term. As such, upgrading can unlock better returns.

• Status symbol: For some, upgrading to a private condo is also a statement - it's about making it to the next life milestone.

Advantages

One of the biggest advantages HDB upgraders have is their ability to tap into their existing property's value. With resale HDB prices reaching record highs in recent years, they can often sell their flat for a tidy profit and use the proceeds as a substantial down payment for their condo.

For example, a premium 5-room HDB apartment at Margaret Drive reached a record-high sale of $1.7 million in 2024. This unit was part of a Selective En bloc Redevelopment Scheme (SERS) project launched in June 2017. If the owner had purchased it for $600,000 to $700,000 at that time, they'd now have significant equity to upgrade to a condo without overstretching their finances.

Additionally, having navigated the property market before, upgraders tend to have more experience with negotiations, financial planning, and understanding market trends, although this may vary depending on individual circumstances. That being said, it is still vital to engage a real estate agent to help guide you through your upgrade.

Challenges

However, the upgrading isn't without its hurdles:

• Cooling measures: The ABSD is a key challenge. Upgraders who wish to hold onto their HDB flat while purchasing a condo face higher taxes. This often forces them to sell their flat first, which can be a logistical and emotional challenge. While most upgraders eventually dispose of their HDB to qualify for ABSD remission, the real pain lies in the larger capital outlay required upfront, making the transition financially demanding.

You can own both a private property and an HDB at the same time, but the sequence matters. You can find out by reading this article: Is Owning Both a Private Property and an HDB Possible?

• Market competition: Private condos, especially new launches, are incredibly popular. Upgraders may find themselves competing with first-time condo buyers and investors, driving up prices.

• Price mismatches: While HDB resale prices have crossed the million-dollar mark, they only reflect a small percentage of the property landscape, and, therefore, don't always align with the rising cost of condos. This can make the financial leap to private property more daunting. In fact, over the years, it has been found that the number of HDB upgraders have decreased significantly, citing the cost of private condos as the key obstacle.

For example, according to Investment Suite, a 4-room BTO unit in Buangkok Link that MOPed in 2024 was sold for $665,000. Now, if those owners were to look for a new launch project in the same estate (eg. Kovan Jewel: TOP 2025), they will find themselves significantly priced out. The starting price at Kovan Jewel is at $1.5 million.

Another example would be a 4-room BTO unit in Canberra Crescent that MOPed in 2024 that was sold for $810,000. Now, if those owners were to also look for a new launch project in the same estate (eg. The Watergardens At Canberra: TOP 2025), they might find upgrading a tight stretch. The starting price at that project is at $1.118 million.

Source: The Business Times

First-time condo buyers bring youthful energy and fresh aspirations to Singapore's property market. They're eager to enter the private housing scene, often motivated by dreams of exclusivity, lifestyle upgrades, or smart investment. This group represents a growing force, particularly as younger generations prioritise homeownership earlier in life.

Who they are

First-time condo buyers generally fall into these categories:

• Young professionals or couples: Typically in their late 20s to early 30s, these buyers often represent dual-income households with steady career progress. They're looking to establish independence, start a family, or secure a long-term home.

• New investors: Individuals eyeing entry-level private properties as their first step into property investment. They're drawn to smaller units like one-bedroom or studio condos, which are easier to rent out and maintain.

• Singles with high disposable income: Young, upwardly mobile individuals who prefer skipping the HDB route altogether for the prestige and freedom of owning private property.

Why they choose condos

• Lifestyle and convenience: Private condos come with facilities like swimming pools, gyms, and clubhouses that enhance day-to-day living. Many developments also include convenience stores or even childcare centres on-site, making them particularly attractive.

• Skipping the HDB wait: Buying a new BTO flat can take three to five years (sometimes more) to complete. As such, savvy first-timers are choosing condos, especially move-in-ready ones, bypassing the wait altogether.

• Investment potential: Condos are seen as an asset class with strong potential for rental yields and capital appreciation. Many first-timer buyers aim to leverage their purchase as a stepping stone toward future wealth.

• Exclusivity and status: Let's face it, whether you are team HDB or team condo - owning a condo is as much about the "wow" factor as it is about practical benefit. For many first-timers, a condo symbolises financial independence and upward mobility.

Advantages

First-time condo buyers enjoy several unique benefits that make their entry into the property market smoother. One of the most significant benefits is flexibility - they don't have an existing property to sell, which allows them to act quickly in a competitive market. This is particularly useful for new launches, where early decision-makers often get better unit choices and promotional pricing.

Additionally, first-time buyers exploring Executive Condominiums (ECs) can tap into government grants, which significantly reduce the financial strain. ECs blend public and private perks, making it an attractive option for young buyers seeking affordability without compromising on luxury. That being said, they are not available for single buyers.

Another key advantage lies in the availability of smaller units like one-bedroom condos. These units come with lower price tags, making them more accessible to first-timers, and they also offer flexibility as a potential rental asset in the future. Together, these factors make the journey into private property ownership more manageable and appealing for first-time buyers

Challenges

However, first-time condo buyers face a unique set of hurdles:

• High initial costs: Private condos require substantial upfront payments, including a 25% down payment, stamp duties, and other fees. For younger buyers with shorter work histories, saving enough might be a struggle.

• Tight budgets: While smaller units are more affordable, they often come at the cost of space, which can be a compromise for young families or those planning to grow their household.

• Limited loan capacity: First-time buyers may not qualify for the maximum loan amount due to their incomes, especially if they're early in their careers. This can limit their options to less desirable units or locations.

• Market competition: Popular projects - especially those in prime locations - attract fierce competition from seasoned investors and HDB upgraders, driving up prices and leaving first-timers with fewer choices.

• Cooling measures: Measures like the Total Debt Servicing Ratio (TDSR) cap how much buyers can borrow, further restricting their purchasing power.

Singapore's property market is like a high-stakes game, and both HDB upgraders and first-time condo buyers are navigating its twists and turns. From fluctuating interest rates to fierce competition for the best units, the challenges are real, but so are the opportunities. Let's break it down.

Dropping interest rates

Good news for buyers: interest rates have started to dip, and that's giving both HDB upgraders and first-time buyers a bit of breathing room. Lower borrowing costs mean more manageable monthly repayments, making it slightly easier to afford that dream condo.

For HDB upgraders, this can be a game-changer, especially if they're stretching their budgets to transition to a private property. It's an opportunity to lock in favourable rates, which could make upgrading a more viable option.

First-time condo buyers stand to benefit as well. Lower rates reduce the overall cost of financing, making it easier for younger buyers with tighter budgets to qualify for loans. It's a small win, but in a market where every dollar counts, it's a step in the right direction.

Soaring property prices

Let's not sugarcoat it - property prices aren't slowing down. Private condos, especially in desirable areas, are setting new records with every launch. HDB upgraders might feel the sting here, too. Even selling a flat at a record-breaking price doesn't always bridge the gap to a high-value condo. If you are selling high, chances are you are in a seller's market, which means you will most likely be buying high too.

If you're not in the rush to upgrade, then you might want to consider holding on till the right time.

First-time buyers are often forced to make compromises - smaller units, suburban locations, or older developments that don't necessarily match their original vision. It's about getting a foot in the door, but it's hard not to dream of something bigger.

Cooling measures

Ah, cooling measures - the market's way of saying, "Hold up, let's not get too wild." But these measures hit both groups differently. For HDB upgraders, the ABSD can be a major roadblock. Want to hold on to your HDB while looking for a condo? It's possible but that will cost you extra 20%. For many, selling their flat first is the only practical option, but it contributes additional stress to an already complex process.

First-time buyers don't have to worry about ABSD, but they're hit with the TDSR. It's like a ceiling on how much you can borrow, which often means having to adjust expectations accordingly. When you've found a place you love but can't quite afford, it's a reality check that can feel a little too real.

I know the feeling of stepping into a showflat or unit and that instant "feel good" feeling. That's the psychology of property in play.

Market competition

Here's the kicker: competition. Everyone - from seasoned investors to HDB upgraders and first-time buyers - is chasing the same pool of properties. Hot new launches or resale condos in prime locations? They're snapped up almost as soon as they hit the market.

Three-bedroom units are consistently in high demand. The average price of new three-bedder private condos, according to Investment Suite, is at $2,516,419. Resale prices would be at $2,120,445. This is not encouraging for first-time buyers. Neither is it for HDB upgraders. The result? A crowded battlefield where securing the perfect unit often comes down to timing, speed, and maybe a little bit of luck.

When it comes to the property game, both HDB upgraders and first-time condo buyers bring unique strength and face distinct challenges. So, who really has the upper hand in today's market?

HDB upgraders: The experienced veterans

HDB upgraders have the experience of owning and selling a property under their belt, which gives them a significant edge. With resale HDB prices soaring in recent years, many upgraders can cash out with substantial proceeds to fund their move into private property. This financial boost often allows them to afford larger units or condos in better locations.

However, the road isn't entirely smooth. Cooling measures can force upgraders to sell their flats before buying, adding pressure to time their transactions perfectly. And while their HDB flat might fetch a good price, it doesn't always fully bridge the financial gap to a private condo, especially in today's high-price environment.

First-time condo buyers: The fresh face

First-time condo buyers may lack the experience of upgraders, but they make up for it with flexibility and enthusiasm. Without the need to sell an existing property, they can move quickly when the right opportunity arises, especially for new launches with early-bird pricing.

That said, first-time buyers face significant hurdles. High property prices and rising costs of living mean they often have to consider location, size, or amenities. They also contend with tighter borrowing limits under the TDSR, limiting their purchasing power.

The verdict

At the end of the day, the edge largely depends on the buyer's goals and financial situation. HDB upgraders have the advantage of equity from their flats, enabling them to afford more premium options. First-time buyers can seize opportunities quickly, building their property portfolios early. In a market as competitive as Singapore's, both groups need to play to their strengths while being prepared for the challenges ahead.

Whether you're an HDB upgrader looking to level up or a first-time condo buyer eager to make your mark, navigating Singapore's property market can feel like running a gauntlet. But with a little strategy and foresight, you can turn the odds in your favour. Here are some practical tips to help you succeed in today's competitive landscape.

For HDB upgraders

1. Sell high, buy smart

   • Aim to sell your HDB flat in a seller's market, where demand and prices are at their peak. Use the proceeds as leverage to fund your condo purchase.

   • If the market timing isn't perfect, consider renting temporarily or staying with family after selling. This flexibility allows you to wait for favourable conditions to buy in a buyer's market.

2. Explore resale condos

   • While new launches get all the buzz, don't overlook resale condos. In fact, if you are looking for condos with a decent amount of space, resale condos are generally bigger than the condos today.

3. Work with a trusted agent

   • A skilled agent can help price your flat competitively, market it effectively, and coordinate the timing of your sale and purchase. They can also identify private properties that meet your needs and budget.

4. Budget beyond the basics

   • Remember to factor in costs like stamp duties, renovation expenses, and monthly condo maintenance fees. These can add up quickly and impact your overall financial planning.

For First-Time Condo Buyers

1. Start small, dream big

   • Being capable of entering the private property market doesn't mean you need to splurge on a large or luxurious unit. Compact one-bedroom condos or 2-bedroom ECs (if you are purchasing with another individual) are excellent starting points that balance affordability and potential appreciation.

2. Take advantage of grants

   • If you're considering an EC, don't forget to apply for government grants. These can significantly lower your financial burden, making private property ownership more accessible.

3. Be financially prepared

   • Save for your down payment and have a buffer for other costs like stamp duties, legal fees, and furnishing your new home. Ensure you understand your borrowing capacity under the TDSR.

4. Research like a pro

   • Don't just fall for glossy brochures and marketing pitches. Study the neighbourhood, assess upcoming infrastructure developments, and check past transaction data to gauge the property's value and growth potential. All these can easily be achieved through the help of a property agent.

And there you have it - the ultimate showdown between HDB upgraders and first-time condo buyers has reached its final splash. Both divers brought their best to the competition, each showcasing unique strengths and facing their own set of challenges.

In lane one, the HDB upgraders executed a well-calculated dive, leveraging their experience, equity, and strategic timing. Their ability to sell high and capitalise on rising resale prices gave them a strong launch off the platform. However, they had to navigate tricky currents - cooling measures like ABSD and the pressure to sell before buying tested their endurance.

In lane two, first-time condo buyers took a daring leap, bringing youthful energy and adaptability into the mix. Swift and strategic, they made the most of compact units, EC grants, and the allure of private property ownership. Their financial readiness and long-term vision fuelled their confidence, but rising property prices and tight loan restrictions made the dive more challenging, requiring precise calculations to ensure a smooth entry.

Source: The Straits Times

As the judges tally the scores, the results are in - HDB upgraders take the gold!

Why? Because equity is a game-changer. Having built financial resilience through years of property appreciation, upgraders have a stronger platform to spring from when making the leap to private property. While they still face hurdles like cooling measures and timing risks, their ability to monetise an existing asset, time the market, and scale up strategically gives them the slight edge over their competitors.

That said, first-time condo buyers are far from washed out. Their bold move into private property early puts them in the long game, and with careful planning, they can still make strategic dives that set them up for future wins.

At the end of the day, there's no single perfect dive - only different techniques to master. Whether you're upgrading for a better lifestyle or taking your first plunge into private property, success comes down to playing to your strengths, staying informed, and making decisions that align with your long-term goals. Singapore's property market may be deep and competitive, but with the right strategy and financial endurance, you can make a splash and emerge a champion in your own right.

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