Answer
HDB MOP: What Happens Next?
You've done the 5 years. The MOP countdown is over. Now what? Here are your real options — and the math behind each one.
Answer: After MOP, you have 3 main paths: sell and upgrade to a condo (most common), rent out the whole unit (with HDB approval, max 3 years at a time), or buy a second property while keeping the HDB (but you'll pay 20% ABSD on the condo — $300,000 on a $1.5M purchase). Most upgraders sell first to avoid the ABSD hit.
Your 3 Options After MOP
| Option | Pros | Cons | Best For |
|---|---|---|---|
| 1. Sell & upgrade | No ABSD, unlock HDB equity, CPF released for next buy | Need interim housing, timing risk | Most upgraders |
| 2. Rent out HDB | Rental income, keep asset, no rush to sell | Need alternative housing, rental management | People not ready to sell |
| 3. Buy second property | Keep HDB as investment, grow portfolio | 20% ABSD ($300K+ on condo), huge cash outlay | High-income / cash-rich |
Option 1: Sell HDB & Upgrade to Condo
The most common path. Sell the HDB, take the proceeds, and put them toward a condo. Here's what the numbers look like:
| Item | 4-Room HDB ($550,000) | 5-Room HDB ($750,000) |
|---|---|---|
| Sale price | $550,000 | $750,000 |
| Outstanding HDB loan | −$220,000 | −$300,000 |
| CPF refund + accrued interest | −$150,000 | −$180,000 |
| Agent commission (2%) | −$11,000 | −$15,000 |
| Cash proceeds | $169,000 | $255,000 |
| CPF OA (refunded) | $150,000 | $180,000 |
Estimates only. CPF refund includes accrued interest at 2.5% p.a. Actual numbers depend on your specific loan, CPF usage, and sale price.
Upgrade vs Stay: The Math
Scenario: 5-room HDB sold at $750,000, upgrading to a $1,500,000 condo. SC first property — no ABSD.
| Condo Purchase Cost | Amount |
|---|---|
| Purchase price | $1,500,000 |
| BSD | $44,600 |
| ABSD (SC 1st property) | $0 |
| Legal fees | $3,000 |
| Total cost | $1,547,600 |
| Funding | Amount |
|---|---|
| Bank loan (75% LTV of $1,500,000) | $1,125,000 |
| CPF OA (from HDB refund) | $180,000 |
| Cash from HDB sale | $255,000 |
| Total available | $1,560,000 |
| Buffer remaining | $12,400 |
Tight. This is why most upgraders look at $1,200,000–$1,400,000 condos unless they have additional savings. Note: minimum 5% cash for down payment ($75,000) and BSD ($44,600) must come from cash, not CPF.
Option 2: Rent Out the Whole HDB
Must have completed MOP — 5 years from key collection, not purchase.
HDB approval required — apply via My HDBPage. Approval is typically granted if you meet the criteria.
Maximum 3 years per approval — renewable. Max 6 unrelated tenants. Tenants must be registered.
You need somewhere else to live — you can't rent out and live there. Most people rent a smaller place or stay with family.
Rental income is taxable — added to your employment income, taxed at your marginal rate after deductions.
| HDB Type | Typical Whole-Unit Rent | Typical Room Rent |
|---|---|---|
| 3-Room (Mature) | $2,200 – $2,800/mo | $800 – $1,100/mo |
| 4-Room (Mature) | $2,800 – $3,500/mo | $900 – $1,300/mo |
| 5-Room (Mature) | $3,200 – $4,000/mo | $1,000 – $1,500/mo |
Mature estates = Bishan, Toa Payoh, Queenstown, Ang Mo Kio. Non-mature rents are 10–20% lower.
Option 3: Keep HDB & Buy a Condo
This is the dream for some — own both, rent out the HDB, live in the condo. But the ABSD makes it brutal.
| Condo Price | BSD | ABSD (20%, SC 2nd) | Total Stamp Duty |
|---|---|---|---|
| $1,000,000 | $24,600 | $200,000 | $224,600 |
| $1,500,000 | $44,600 | $300,000 | $344,600 |
| $2,000,000 | $69,600 | $400,000 | $469,600 |
ABSD must be paid in cash. You can apply for remission if you sell the HDB within 6 months of purchasing the condo. But you need the cash upfront.
Planning Timeline
6–12 months before MOP
Start researching. View condos, check affordability, get your CPF statements, check outstanding loan.
3 months before MOP
Get bank in-principle approval (IPA) for your next loan. Know your max budget. Engage an agent if selling.
MOP reached
List the HDB for sale. You can start viewings immediately. Typical time to sell: 2–4 months.
HDB sold + condo purchased
Completion takes 8–12 weeks. You'll need interim housing if timelines don't overlap.
MOP done? See what condo you can afford.
Plug in your HDB sale price, CPF balance, and income. The calculator shows your max condo price, monthly payment, and cash needed.
FAQ
Can I buy a condo before selling my HDB after MOP?
Yes, but you will pay 20% ABSD on the condo as a Singaporean buying a second property. On a $1.5M condo, that is $300,000 in ABSD alone. You can apply for ABSD remission if you sell the HDB within 6 months of buying the condo, but the $300,000 must be paid upfront in cash.
Can I rent out my entire HDB after MOP?
Yes, with HDB approval. You must have fulfilled the 5-year MOP and be a Singapore Citizen. The maximum rental period is 3 years at a time (renewable). You cannot rent to more than 6 unrelated tenants, and subletting rules apply.
Do I need to refund CPF when I sell my HDB?
Yes. All CPF used for the flat (down payment, monthly mortgage) plus 2.5% accrued interest per year must be returned to your CPF OA. After 10 years of CPF usage, accrued interest can be $30,000–$80,000 depending on how much CPF you used.
Should I sell my HDB or keep it and buy a condo?
For most people, selling first makes more sense. Keeping the HDB means paying 20% ABSD on the condo ($300K on a $1.5M condo), losing the HDB housing grant on resale, and tying up capital. Unless your HDB rental yield is exceptional or you have a lot of spare cash, sell first.
Can I rent out rooms instead of the whole HDB after MOP?
You can rent out bedrooms after 3 years of living in the flat (even before MOP). After MOP, you can rent out the whole unit or just rooms. Room rental is simpler — no need to find alternative accommodation, and you still live there.
What happens if I buy a condo and sell my HDB within 6 months?
You can apply for ABSD remission. If approved, the 20% ABSD on the condo is refunded. But you must sell the HDB within 6 months of purchasing the condo (not 6 months of completion). The ABSD must still be paid upfront in cash — it is refunded after the HDB sale completes.
Related
- HDB MOP Check — find your exact MOP date
- HDB Upgrade to Condo Steps — the full upgrade playbook
- ABSD on Second Property (SC) — 20% if you keep HDB
- HDB Sale Proceeds Calculator — what you actually walk away with
- Can HDB Owner Buy Condo? — yes, but ABSD applies
Last updated Feb 2026. ABSD rates effective 27 Apr 2023. MOP and subletting rules per HDB. This is informational, not financial advice.