Thinking of upgrading? Here is what every HDB owner must know first.

Vann Lim
Jun 14
4 min read

Updated: Jun 16

Upgrading from your current HDB flat to a larger or more premium property isn’t just about lifestyle. For many Singaporeans, it's a long-term financial decision that impacts both comfort and wealth building. Other reasons include:

More space for a growing family
Better locations closer to work, schools, and amenities
Access to private condo or Executive Condominium (EC) facilities
Capital appreciation opportunities in private property

But with bigger dreams come more moving parts.

Navigating HDB regulations, CPF refund policies, ABSD rules, and housing loan eligibility can be complex. Let us break it down for you.

Are you eligible to upgrade?

Before diving into your next property move, ensure you’ve met these basic HDB upgrading criteria:

Minimum Occupation Period (MOP)

You must fulfil your flat’s MOP before you can:

Sell your existing HDB flat
Buy a private property, EC, or resale HDB

You can check your MOP status on My HDB Page.

CPF Refund Requirement

If you used CPF for your flat purchase, you’ll need to refund the CPF amount withdrawn plus accrued interest (roughly 2.5% per year).

This refund is automatic when your flat is sold, and the CPF funds will be available for your next purchase.

Check Your Outstanding Housing Loan

Make sure you know how much you still owe:

For HDB loans: Check on the HDB website
For bank loans: Use your bank’s app or mortgage portal

HDB upgrader's checklist with icons for housing, loans, and taxes. Steps include checking MOP, CPF , loan eligibility, stamp duties, and transition plan. — HDB upgrade checklist

Your HDB upgrading options

Depending on your financial readiness and risk appetite, there are three common pathways for upgrading from an HDB flat. Each comes with pros, cons, and eligibility conditions.

Option 1: Sell First, Buy Later

Ideal for: Risk-averse homeowners who want financial clarity before committing to their next property.

How it works:

Market and sell your current HDB
Refund CPF and clear your existing loan
Calculate your updated loan eligibility
Purchase your next home: EC, or private condo

Pros:

No Additional Buyer’s Stamp Duty (no ABSD)
Clearer budget after the sale
Higher loan eligibility due to no existing housing debt

Cons:

May need temporary housing
Risk of rising prices while waiting
Pressure to find a new home quickly

Case example:

Our clients, Ricky and Li Ling, sold their 4-room HDB flat for $620,000 and used the proceeds to repay the HDB loan and refund the CPF they had used. With no existing mortgage, both qualified for a higher loan amount and avoided ABSD.

Since the couple preferred to take their time exploring resale options, they temporarily moved in with Ricky’s parents.

Eventually, Ricky and Li Ling secured a 3-bedroom resale condo for $1.3 million on his own timeline and without financial strain.

We only recommend this option if you have access to temporary accommodation and are in no rush to buy your next home.

Option 2: Buy First, Sell Later (Within 6 Months)

Ideal for: Financially prepared buyers who don’t want to risk losing their dream home.

How it works:

Find and commit to your next home
Pay ABSD upfront (since you’ll temporarily own two properties)
Sell your HDB within 6 months to qualify for ABSD remission
Refund CPF and use the remaining funds to reduce your new loan

Key considerations:

Singaporeans pay 20% ABSD on the second property
You can get a full refund if:
- You’re married, and the property is under both names
- You sell your first property within 6 months of purchasing the second property
- The married couple did not own an interest in more than one residential property each at the date of purchase of the second residential property

Pros:

Lock in your dream home early
No need for interim housing

Cons:

Need upfront cash for down payment and ABSD
CPF usage is limited for the second property until the first is sold
Lower Loan-to-Value (LTV) ratio due to outstanding loan

Case example:

Jon and Janice owned a 5-room HDB flat. When we found a resale EC for $1.1 million, they decided to secure it immediately, as it was a golden opportunity to own their dream home at this price.

They had to pay $220,000 in ABSD upfront, as it was their second property. After helping them sell their HDB within two months, they received a full ABSD remission.

This allowed them to secure the home they wanted, without rushing the sale of their existing flat.

We only recommend this option if you have enough funds to afford two property obligations temporarily. If you need the proceeds from your HDB sale to fund the next home, this option is not ideal.

Option 3: Sell and Buy Concurrently (Seamless Timeline Coordination)

Ideal for: Homeowners who want to avoid interim housing, while enjoying a smooth transition.

How it works:

List and sell your HDB flat
Once the buyer has exercised the OTP, you can start to search and commit to your next property
Time both transactions to complete closely (often on the same day)
CPF refund from the sale is used for the purchase of your next home

Pros:

No ABSD
No need to rent or move twice
Only one housing loan at a time = better terms

Cons:

Timeline must be precisely planned
Both sellers and buyers must cooperate
A delay from any party can disrupt the plan
A lot of coordination between the buyer's and seller’s ends

Case example:

Jason and Rachel wanted a smooth transaction and engaged us to upgrade from their 4-room HDB flat to a resale condominium.

We sold their HDB and negotiated for a longer completion period with an 8-week extension stay. This gave them time to secure their new home.

They found a resale condo, and we helped time the completion date to match their HDB sale, allowing them to move out and move in seamlessly with no temporary lodging.

Their successful upgrade was made possible by precise planning and collaboration with a professional agent like us, who managed both timelines, paperwork, and coordination among all parties.

This is the ideal option for many families, but it requires close coordination and planning. We’ve helped many homeowners upgrade smoothly with this strategy.