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HDB Terrace Houses: What Are They & Why The Demand?


What in the world is an HDB Terrace House? No, it’s not a Singaporean version of the popular Netflix series. HDB Terrace Houses are an incredibly rare breed of Singaporean public housing, similar to landed properties, but at HDB prices (mostly). Sounds too good to be true? Read on!


Built by the Singapore Improvement Trust (SIT) in the late 1950s, HDB terraces were issued 99-year leases in the late 1960s and early 1970s, when HDB took over the management of public housing. There’s only 285 HDB Terraces in Singapore, and this type of housing has been discontinued since, meaning there won’t be any new ones being built. With such short supply and scarcity, it’s no wonder there’s an increasing demand for these unit types!


You might be wondering, what are the perks of an HDB Terrace, and how is it different from say, a private landed property? While HDB Terraces do not come with a private parking space, homeowners can look forward to having their very own private backyard. The HDB terraces also offer a larger space than a typical HDB flat would – and at a much lower price than that of private landed homes!


However, there’s one major consideration to be made – lease depreciation. Since HDB Terraces have been discontinued, the current units available are generally running out of time on their lease, with maybe only around 50 years left. When the lease hits 0, the land returns to the government, so buyers do need to be aware of this and plan accordingly.


In any case, there is still a proven demand for HDB Terraces, and with the supply being so limited, it’s definitely a unique opportunity for buyers. Wondering if HDB terraces are suitable for you? UnlockHome specializes in finding homebuyers the perfect home for their unique needs. Check out our website at www.unlockhm.com, or drop us a call today!

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