NEWS

26-Jul-2009
HDB flats not for making money. Home-seekers may be snapping up HDB flats amid this recession as well, but don't dream of making a killing by investing in a public flat. For one thing, HDB flats are meant to provide basic housing for the masses, which means they are not investment-grade properties. 'If you're looking to make capital appreciation or good rental income, then it is still the private condominiums because people who rent look for facilities,' said Mr Eugene Lim, associate director at property firm ERA Asia Pacific. 'The highest you can fetch in rent for an HDB flat in a good location is probably $2,000 plus. Any higher, people will go to condos,' he added. HDB figures show that a three-room flat in Ang Mo Kio, Jurong West or Serangoon typically fetched rent of about $1,400 a month in the second quarter of this year. Forget about making huge gains from selling your HDB property either. 'HDB is not a market that swings very widely. It is a gradual market,' said Mr Lim. Strict HDB rules make it hard for anyone to profit from renting or selling his flat. The board imposes a minimum occupation period on a home owner before he can sell his flat on the open market. This period depends on the mode of purchase, financing and the flat type.