When Is Your HDB Flat The Most Profitable?

Pinnacle @ Duxton, Natura Loft, these are some of the most familiar HDB estates, for good reason! Units in these developments have sold for over a million dollars, raking in a hefty profit for the lucky owners, and giving the rest of us Singaporeans a serious case of FOMO. Although everyone hopes to be sitting on a million-dollar unit, these units are unfortunately far and few between. But, all is not lost! Our HDB may not be worth a million, but with the right timing, it can still be worth a pretty penny! Today, UnlockHome is diving deep into the value of our HDB flats, and the stage at which they’re the most profitable.

Let’s cut right to the chase – for HDBs, the most profitable stage is usually M.O.P. stage. That’s when an HDB or BTO has just fulfilled their minimum occupation period of 5 years, and the unit finally becomes eligible for resale. Why is this so? During M.O.P. stage, the unit has the most number of years left on its lease, and commands a much higher value because of this. Due to HDB lease depreciation, the value of an HDB drops over time as the lease starts to run out. This means units with more years on their lease will command a higher value, making it much more profitable. Of course, there’s other perks to a newly-M.O.P. flat, such as condition – newer flats are generally in much better condition both inside and out, which also contributes to the premium price these units can command. This means, selling at M.O.P. stage generally looks to be the most profitable for HDB homeowners, who can then take the extra profits and invest in their next property – usually a private property with even higher capital appreciation.

In fact, this is exactly what UnlockHome’s clients, Jason and Alyssa, did! They started off with a 5 room flat in Punggol, which they purchased in 2014 for $285,000 when they got married. Fast-forward to 2019, when their HDB hit M.O.P, they were unsure what to do, and contacted UnlockHome to see their options. Through detailed financial calculations and strategic planning, they realized it was possible for them to sell their HDB and upgrade to a private condo, and decided to take the leap of faith. They sold their HDB for a whopping $638,000, and upgraded to their dream private condominium. Jason and Alyssa are some of the many clients who have taken the asset progression journey, leveraging the value of their HDB flat to upgrade to a private property and start growing their wealth.

So, should HDB owners be locking their profits in their HDB? The answer – absolutely not! In fact, HDB owners are in the perfect position to leverage their HDB, and start growing wealth for the long-term. If your unit has just reached M.O.P, and you’re wondering what to do, UnlockHome would love to help guide you along your real estate journey, and equip you with the best strategies to start growing your wealth. Check out our website at for more!