Answer
Sell HDB First or Buy Condo First?
The #1 question every HDB upgrader agonises over. Both paths work — but the financial difference is massive.
Answer: Most Singapore Citizens should sell their HDB first, then buy a condo. This avoids the 20% ABSD ($200K+ on a $1M condo) and keeps your cash free. Buying first only makes sense if you have deep cash reserves and need to lock in a specific unit — you'll pay ABSD upfront and must sell the HDB within 6 months for remission.
Sell First vs Buy First — At a Glance
| Factor | Sell HDB First | Buy Condo First |
|---|---|---|
| ABSD (20%) | Not applicable | Pay upfront (cash only) |
| Temporary housing | Likely 2–4 months rental | Not needed |
| Rental cost | $2,000–$4,500/mo | $0 |
| Unit selection | Limited to what's available later | Lock in your preferred unit |
| Timeline pressure | Moderate — find condo after HDB sold | High — must sell HDB in 6 months |
| Cash requirement | Lower | Much higher (ABSD deposit) |
| Risk | Housing gap, market moves | ABSD forfeiture if HDB doesn't sell |
ABSD Cost If You Buy First (SC, 2nd Property)
This is the cash you need upfront if you buy before selling.
| Condo Price | ABSD (20%) | Remission? |
|---|---|---|
| $1,000,000 | $200,000 | Sell HDB in 6 months |
| $1,500,000 | $300,000 | Sell HDB in 6 months |
| $2,000,000 | $400,000 | Sell HDB in 6 months |
| $2,500,000 | $500,000 | Sell HDB in 6 months |
| $3,000,000 | $600,000 | Sell HDB in 6 months |
ABSD must be paid in cash. Remission applies only if you sell the existing property within 6 months of exercising OTP. ABSD rates effective 27 Apr 2023.
Path A: Sell HDB First — Timeline
| Step | Duration | What Happens |
|---|---|---|
| 1. List HDB | Week 1 | Appoint agent, set asking price |
| 2. Find buyer | 2–8 weeks | Viewings, negotiate, grant OTP |
| 3. Buyer exercises OTP | 21 days | OTP fee + exercise fee |
| 4. HDB resale process | 8–10 weeks | Submit, approval, completion |
| 5. Move out, rent temp housing | Move-out day | $2K–$4.5K/mo rental |
| 6. Shop for condo | 2–8 weeks | View, negotiate, exercise OTP |
| 7. Condo completion | 8–12 weeks | Legal, loan, stamp duty, keys |
Total: 5–8 months from listing HDB to condo keys. Temporary housing: 2–4 months typical.
Path B: Buy Condo First — Timeline
| Step | Duration | What Happens |
|---|---|---|
| 1. Find condo, exercise OTP | Day 0 | Pay 20% ABSD in cash |
| 2. Condo completion | 8–12 weeks | Legal, loan, stamp duty, keys |
| 3. List HDB for sale | Immediately | 6-month clock starts ticking |
| 4. Sell HDB | 2–8 weeks | Find buyer, negotiate, OTP |
| 5. HDB completion | 8–10 weeks | Submit, approval, hand over keys |
| 6. Apply for ABSD remission | After HDB sold | IRAS refunds ABSD (takes 2–3 months) |
Total: 4–7 months, but you need $200,000–$600,000 cash upfront for ABSD.
When Buying First Makes Sense
- • You have $300,000+ in liquid cash you can park for 6–12 months
- • You're targeting a specific new launch unit that won't wait
- • Your HDB is in high demand (mature estate, good condition) and will sell fast
- • You can't tolerate the disruption of temporary housing with kids
- • You're a married couple eligible for ABSD remission (SC+SC or SC+PR)
When Selling First Makes Sense
- • You don't have $200,000+ in cash to park as ABSD
- • You're not sure your HDB will sell within 6 months
- • You want to know your exact sale proceeds before committing to a condo budget
- • You're flexible on timing and can handle 2–4 months of rental
- • You want to negotiate from a position of strength (no ABSD deadline pressure)
What can you actually afford?
Run the numbers for your HDB sale proceeds, CPF, and borrowing power to find your max condo budget.
Affordability CalculatorFAQ
Should I sell my HDB first or buy a condo first in Singapore?
Most upgraders sell first to avoid 20% ABSD. Buying first only makes sense if you can afford to park $200K+ ABSD (refundable if you sell the HDB within 6 months) and want to secure a specific unit.
What is the ABSD if I buy a condo before selling my HDB?
As a Singapore Citizen buying a second property, you pay 20% ABSD upfront in cash. On a $1.5M condo, that’s $300,000. You can apply for ABSD remission if you sell the HDB within 6 months of buying the condo.
How long do I have to sell my HDB after buying a condo to get ABSD remission?
You must sell your existing HDB within 6 months of exercising the Option to Purchase (OTP) for your new condo. If you miss this deadline, the ABSD is forfeited.
What is temporary housing and how much does it cost?
If you sell your HDB first, you may need to rent while waiting for your condo. Rental costs range from $2,000–$4,500/month depending on location and size. Typical gap is 2–4 months.
Can I use HDB contra facility to avoid temporary housing?
Yes. The HDB contra facility lets you use your HDB sale proceeds directly toward your new property purchase, reducing the cash gap. But the timelines of both transactions must align, which takes careful coordination.
What happens if I can’t sell my HDB within 6 months?
You lose the 20% ABSD you paid upfront — no remission. On a $1.5M condo, that’s $300,000 gone. This is why most upgraders sell first unless they have deep cash reserves.
Related
Last updated Feb 2026. ABSD rates effective 27 Apr 2023 (IRAS). This is general guidance, not financial advice.