What is the rental yield after selling an HDB?

When considering the yield after selling an HDB flat in Singapore, several factors come into play:

Price Trends

HDB resale prices have been on an upward trend, with a 1.6% quarter-on-quarter increase in the first quarter of 2025, marking the 23rd consecutive quarter of price growth. However, this growth is at a more moderate pace compared to previous quarters.

Transaction Values

A significant number of HDB resale transactions are occurring at higher price points. For example, 5.5% of the transactions in the first quarter of 2025 were concluded at prices above $1 million, and 6% of the transactions fell between $900,000 and $1,000,000. This indicates that sellers can potentially achieve high prices, especially for flats in desirable locations like Queenstown, Bukit Merah, and Toa Payoh.

Market Conditions

The resale market is influenced by various factors, including the supply of new Build-To-Order (BTO) flats and the Minimum Occupation Period (MOP) for existing flats. With a lower number of newly MOP-ed flats entering the resale market in 2025, supply constraints could keep prices elevated, making it a favorable time for sellers.

Financial Considerations

Sellers should also consider the financial implications, such as any outstanding mortgage, the cost of selling (including agent fees and other expenses), and potential gains or losses. The yield after selling would be the net profit after deducting these costs from the sale price.

Next Steps

After selling an HDB flat, buyers often have to consider their next housing option. Some may opt for private properties, especially if interest rates drop and make mortgages more affordable. However, the demand for larger HDB flats, particularly Executive units, remains strong due to limited supply and strong demand from upgraders and multi-generational families.

In summary, the yield after selling an HDB flat can be significant, especially in a market with sustained price growth and high demand for certain types of flats. However, it is crucial to consider all associated costs and market conditions to maximize the yield.