Ask an Agent: Answers to selling and buying older flats

Thinking about selling an older flat or buying one with fewer years left on its lease? You’re certainly not alone. 

Questions about lease decay, future value, and when the right time is to sell have become increasingly common, especially as more flats in Singapore move past the 30- and 40-year mark. At the same time, older flats continue to attract buyers because of their larger layouts and established locations.

These answers were provided by Ann Lee, Group District Director at Huttons Asia Pte Ltd (CEA: R007611F).

Selling strategies for older flats

Jamaluddin asks: How do I start selling an older flat?

The first thing you should do is ensure that you are eligible to sell. 

For HDB owners, this means checking whether you have fulfilled the Minimum Occupation Period (MOP). Most flats require owners to complete a five-year MOP before they can be sold.

After that, it is important to think about your plans after the sale. Ask yourself why you are selling and where you intend to stay next. Having a clear plan can help you make better decisions throughout the process.

It may also be worthwhile to engage an experienced property agent. Besides helping with the paperwork and marketing, a good agent can provide guidance on pricing and positioning your flat in the market.

Eric asks: How do I sell an older flat at a record-high price?

There is no single formula for achieving a record-breaking price. However, several factors can improve your chances.

Location remains one of the biggest drivers of value. Flats near MRT stations, integrated developments, shopping malls and established amenities often command stronger demand. The condition of the flat also matters. Units with well-maintained interiors, attractive renovations and unblocked views, such as city or sea views, can appeal to more buyers.

That said, every flat is different. Factors such as the specific block, floor level and unit attributes should all be considered before deciding on a pricing strategy.

Anonymous asks: I want to sell my HDB without paying an agent’s commission. Is it possible?

Yes, it is possible.

Homeowners are not required to engage a property agent to sell their HDB flat. However, taking the DIY route often requires a significant amount of time and effort.

You will need to market the property yourself, take quality photos, create listings and respond promptly to enquiries from prospective buyers. Arranging and conducting viewings will also fall entirely on you.

Since many buyers expect quick responses and flexible viewing arrangements, managing the sale yourself can become time-consuming, especially if you have other commitments. 

For many sellers, engaging an experienced agent is recommended, especially for those who prefer professional support with marketing, negotiations and administrative matters.

JYMC asks: What is the average time a land-only landed property takes to find a buyer?

There is no fixed timeline.

The speed of a sale largely depends on factors such as location and pricing. Properties in highly accessible areas, especially those near MRT stations and amenities, may attract buyers relatively quickly if they are priced realistically.

On the other hand, properties in less convenient locations or those listed significantly above market value may take much longer to sell.

Ultimately, pricing expectations and location often work hand in hand when determining how quickly a buyer can be found.

Syed asks: What is the exit strategy for buying older flats, especially HDBs?

Location should remain one of the key considerations when buying an older flat.

Many older flats in mature estates such as Queenstown, Toa Payoh and Bishan have continued to command strong prices because they are situated near amenities and transport nodes.

As long as an older flat is located in a desirable area with enduring demand, owners may still be able to attract buyers when they decide to sell in the future.

Fumi asks: Why is it hard to sell now?

Many sellers and agents have noticed that homes are generally taking longer to attract viewings. One reason could be buyer sentiment. Some prospective buyers are adopting a wait-and-see approach because they are uncertain about market conditions.

At the same time, HDB has been ramping up its BTO supply, while waiting times for some projects have become shorter than before. As a result, certain buyers who would have otherwise considered resale flats may now prefer to apply for a BTO flat instead. This is especially evident now during the June BTO exercise period, when some buyers choose to wait and see if they are successful in their application before re-entering the resale market. 

Cheryl asks: I live in a 49-year-old flat and I’m now 44 years old. Should I sell and buy a newer home?

It may be worth considering, especially if you are thinking about the long-term suitability of your current home. 

A flat that is 49 years old has around 50 years of lease left. Depending on your financial situation and housing needs, moving to a newer HDB flat or even a smaller condominium may provide you with a property that has a longer remaining lease.

However, the decision should also depend on your affordability, lifestyle preferences and long-term plans.

Anonymous asks: Can I secure a buyer now if my new BTO flat will only be ready in Q2 2029?

Technically, you can. However, sellers should carefully think through the practical implications.

Selling too early means you will need another place to stay while waiting for your new flat. Depending on your circumstances, this could involve renting for several years or staying with family.

Because of this, it may be more practical to begin planning your sale closer to the completion of your new BTO flat. 

Amanda asks: When should I sell my existing flat if my new home will only be ready in six years?

Selling too early may not be ideal unless you already have alternative housing arrangements. 

For many homeowners, beginning the selling process around six to 12 months before the expected completion of the new home could be a more practical timeline. This reduces the likelihood of having to move multiple times or pay for several years of rental accommodation.

Amanda also asks: Should I renovate or spruce up my flat before engaging an agent?

The advice here is to hold off on making major changes. 

An experienced property agent can assess your flat and advise you on improvements that could make a difference. In many cases, simple and cost-effective enhancements may be enough.

These could include repainting walls, changing worn fixtures, using wallpaper or adding furnishings and decor to improve presentation. Spending large sums on major renovations before seeking professional advice may not always provide the desired returns.

Amanda also asks: Is it okay to hold on to my current flat while my new flat undergoes renovations?

Yes, but there are important timelines to keep in mind.

Owners who buy a new HDB flat while already owning another property are generally required to dispose of the existing flat within the stipulated timeframe after collecting the keys to the new home.

Because completion dates can sometimes shift earlier or later than expected, it may be sensible to start planning the sale around six to 12 months before the expected completion date. In some cases, sellers may also negotiate an extension of stay arrangement with the buyer, subject to mutually agreed terms.

If owners have genuinely tried to sell their flat at market value but still require more time, they may appeal to HDB for an extension. Approval is not guaranteed, and HDB taking back the existing flat would generally be considered a last resort.

Lease decay & government policy

Eric asks: How do you calculate the 95-year rule?

The rule is based on the buyer’s age and the remaining lease of the flat. For example, if a buyer is 35 years old and the flat has 60 years of lease left, the total comes up to 95 years.

Meeting the 95-year threshold is important because it can affect the amount of CPF savings and housing loan that buyers may be able to use.

Sha and CS ask: At what age is a flat considered old?

Generally speaking, flats that are less than 20 years old are still relatively young. Flats between 20 and 30 years old may be considered middle-aged and can still attract healthy demand.

However, once a flat reaches around 40 years old, owners may want to start reviewing their long-term plans. Flats aged 40 years and above generally fall into the category of older flats because they have around 59 years or less of lease remaining.

Joan asks: Are older but bigger flats with less than 55 years of lease left still a good purchase if their value could eventually fall to zero?

Yes, they can still make sense for certain buyers. 

Large executive apartments, executive maisonettes and spacious five-room flats are increasingly rare in today’s market. Many of these homes were built in the 1980s and early 1990s and offer significantly more living space than newer flats.

These properties often appeal to middle-aged buyers, including those who have sold private properties and are looking to downsize while still enjoying spacious living.

Because some of these buyers may not require large loans, there can still be a market for older, larger flats.

Joan also asks: What might happen when flats reach the end of their 99-year lease?

There is currently no definitive answer. Under Singapore’s leasehold system, land is generally returned to the state once the lease expires.

Many homeowners are familiar with concepts such as the Selective En bloc Redevelopment Scheme (SERS) and the Voluntary Early Redevelopment Scheme (VERS). However, SERS only applies to selected sites, while VERS has not yet been implemented.

As things stand, there is no official framework that guarantees a lease top-up or compensation once a lease expires.

Read more: The 99-year question: How VERS will refresh ageing HDB towns

Kan asks: If an older HDB flat has 60 years of lease left and is near the Cross Island Line, will it be demolished once the lease expires?

Proximity to an MRT station does not automatically change what happens at the end of a lease. Under current leasehold principles, properties are generally expected to revert to the state upon lease expiry unless future policies provide alternative arrangements.

Investment potential & value appreciation

Khalid asks: Is there potential for appreciation if I buy a 25-year-old 5-room HDB flat in Pasir Panjang and spend S$100,000 to S$125,000 on renovations?

Pasir Panjang remains an attractive location because it sits close to the city and offers strong accessibility. However, it is important not to assume that expensive renovations will automatically translate into higher resale prices. 

Renovation preferences can vary greatly from one buyer to another. Features that appeal to one person may not necessarily attract another. Instead of focusing purely on renovation spending, buyers may want to pay closer attention to location and long-term demand fundamentals.

As for future price growth, the flat would still be relatively young from a lease perspective. Depending on broader market conditions, owners could potentially continue holding the property for several more years if they are not ready to sell.

Ed asks: Will the value of flats go down? I’m considering an executive maisonette that TOP-ed in 1987 and plan to sell it 10 years later.

Yes, there will likely still be buyers, although the buyer pool may look different from that of newer flats. 

An executive maisonette built in 1987 would have around 50 years of lease remaining today. While its buyer pool may differ from that of newer flats, demand for such properties can still exist.

Many buyers are drawn to executive maisonettes because of their generous layouts, which are difficult to find in today’s market. These homes may appeal particularly to multi-generational families and middle-aged buyers seeking more living space.

As a result, older executive maisonettes can still retain a niche market even years down the road.

Eligibility & technical requirements

Mike asks: I rejected the option to sign the lease agreement. Am I still eligible to buy an HDB resale flat?

Yes, you can still purchase an HDB resale flat. 

However, if you had already signed certain agreements before withdrawing, there may be penalties depending on your circumstances. Buyers should check their specific case with HDB if they are unsure.

Lim Pek Hong asks: I’m selling a flat. How much is the agent’s commission, excluding GST?

The commonly charged commission for HDB resale transactions is 2% of the sale price, before GST.  As commission structures can vary, homeowners should clarify the fees and services included before appointing an agent.

Stay tuned for the next Ask an Agent

Ask an Agent is a monthly initiative by 99.co where a guest property agent is invited to answer your questions about a selected topic. The aim is to get clarity and provide readers with clear, practical insights into today’s property market, directly from industry professionals. 

As Singapore’s housing stock continues to mature, questions surrounding older flats are likely to become increasingly common. While concerns about lease decay and future value remain, older flats can still offer opportunities depending on your needs and circumstances. 

We’ll be back with another round of Ask an Agent, where we will explore another topic within the Singapore property market and continue addressing the questions that matter most to homeowners, buyers and sellers alike.

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