Should I sell one HDB and purchase two condos?
12 October, 2023 by
Should I sell one HDB and purchase two condos?
Mindlink Groups Pte Ltd, Admin


Is the "sell one HDB, buy two condos" strategy a smart investment now?

Many have seen the tempting pitch: "Sell 1 HDB, Buy 2 Condos! NO ABSD!"

This idea gained traction last year, enticing sellers and buyers looking to expand their property portfolios without incurring the Additional Buyer's Stamp Duty (ABSD).

Here's the concept: Singaporean couples could sell their HDB flat and use the proceeds to make a down payment on two separate condos, each in their respective names.

But is this strategy too good to be true, or a wise move in the current economic climate? Let's dive in!

Considering selling your HDB and diving into the world of condo investments? Here's a scenario to help you grasp how it might work:

Imagine you and your spouse jointly own an HDB flat. You're planning to expand your family and need a more spacious home closer to your parents for support.

So, what's next? Find out if the "sell one, buy two" rule might be of assistance!

Explore the "Sell One, Buy Two" Approach

Considering carrying out the "sell one, buy two" strategy? Here's how it could play out:

You can choose to live in one condo and rent out the other, offering rental income.

You have the flexibility to switch between the two properties based on your family's evolving needs.

Imagine selling your HDB for $400,000, with $120,000 left after settling loans and fees. Then, you and your spouse each snag a condo:

Use $75,000 for a spacious Condo A, worth $1.5 million.

Use the remaining $45,000 for Condo B, valued at $900,000.

Two properties, no ABSD! 

Avoid ABSD, Simplify Your Finances

Why use two names for your properties in the "sell one, buy two" strategy? There are some key reasons:

Legally Avoid ABSD: When you co-own a property, the Additional Buyer’s Stamp Duty (ABSD) can kick in, especially when buying a second property. For Singapore Citizens, that can mean a hefty 12% on the property price.

Simplify Financing: By purchasing the properties separately under each spouse's name, you can often secure up to 75% financing for each property, making it easier to manage financially.

In essence, this strategy provides a way to bypass ABSD and create a financially manageable path to owning two properties

To pull off the "sell one HDB, buy two condos" strategy successfully, certain factors need to align:

  1. Dual Income Household: Both spouses must have stable incomes to meet the Loan-To-Value (LTV) limits and Total Debt Servicing Ratio (TDSR) requirements. This is crucial because your individual incomes will be considered separately, not as a combined household income. In case of unexpected job loss or financial challenges, managing two mortgages could be burdensome.

  1. Sufficient Savings: You'll need enough savings to cover the required stamp duties and cash down payments. This includes having the funds to cover the next 20% down payment as well as having proceeds from the sale of your HDB flat to reimburse any CPF funds used.

These are key prerequisites for executing this strategy. Planning, financial stability, and a dual-income household are central to its success. 

The pros and cons of "Sell One, Buy Two"

Do you intend to invest in real estate using the "sell one, buy two" strategy? Here's what you should consider:


  • Diverse Portfolio: Own two properties, providing flexibility to live in one and rent out the other for extra income.

  • Long-term Planning: As your needs change, you can swap residences to support your retirement.


  • Economic Uncertainty: The ability to service mortgages in changing economic conditions can be challenging.

  • Property Market: Property prices can fluctuate, and economic impacts on housing markets should be considered.

With the current economic downturn and uncertainty, cautious consideration is advised when pursuing this strategy.

Please note: Economic conditions, employment prospects, and government relief measures play a significant role in the success of this strategy.

Always assess your financial situation and consult with professionals for guidance.

"Sell one, buy two properties" might sound appealing, but it's not a one-size-fits-all strategy. It's crucial to understand that this approach works best for highly-affluent individuals who are financially stable and have a substantial income. With economic uncertainties and many Singaporeans facing income challenges, it's a strategy that should be approached cautiously.

Homeownership is a significant long-term commitment. Before making any property decisions, it's wise to consult with a qualified financial planner to assess your specific situation and guide you through the process.

At Mindlink Groups, we're dedicated to providing you with a seamless and fulfilling real estate experience, whether you're buying or selling your home. Our agents are experienced in real estate advisory, and our skilled services team is here to support you every step of the way. Your financial well-being is our priority

Share this post
Our blogs