Three mistakes to avoid when downgrading Tembusu Grand private property to HDB Flat

There are many reasons homeowners would like to downgrade or right-size from private properties ( executive condo, condominium, or land). They may be empty nesters who no longer require a large space or do not use the condo facilities. It’s not worth paying S$300 per year for condo maintenance if the facility hasn’t been used in a while.

There are many schools near Tembusu Grand site that future residents can choose from such as Kong Hwa Primary School, Tanjong Katong Primary School, Canadian International School and Haig Girls’ School. Other than these, there are a number of reputable secondary schools such as Chung Cheng High School (Main), Tanjong Katong Secondary School and Dunman High School.

There are also benefits to downgrading. Singaporeans who live in houses with an annual worth below S$21,000 will be eligible to receive GST vouchers. The median annual value of private property is above S$21,000 in general.

Moving houses can be stressful, besides the benefits and reasons for downgrading private property into an HDB flat. Here are some tips to help you make the transition smoother.

1. Do not arrange for temporary accommodation

This was before the September 20,22 cooling measures. It was more relevant if you were looking to buy directly from HDB.

This is because you will need to dispose off your local private property as well as overseas property, if any, before you can be eligible for these.

  • You can buy a flat directly through HDB via BTO and Sale Of Balance Flats (SBF ) . Or open booking
  • CPF Housing Grants and HEB Housing Loan (more later).

If you want to buy a BTO apartment, your house must be sold 30 months before you can vote for it. You will need to wait another four to five year before you can move into your new apartment. This is only if you are lucky enough to get a number in the queue to choose a flat immediately. If not, you will have to wait longer.

You will have a shorter wait if you choose to book SBF (or open booking), which may also include completed flats.

If you are looking to purchase a short lease 2-room Flexi Flat or Community Care Apartment from HDB, the 30-month waiting period is not applicable. You can instead sell your private property within six month of receiving the keys to your flat.

However, you will need to live in temporary accommodation while you wait (either renting or staying at home with your family). When people decide to downgrade from private property they will opt for HDB flats. They could then buy the resale apartment and sell their private property in six months.

It’s not easy to move out of your house, but it can be difficult to do so twice.
The sellers are in a hurry to sell the property but they won’t need to relocate while the sale process is underway. A new house is being renovated .

The September 2022 cooling measures announcement made it clear that private property owners who wanted to purchase an HDB flat for resale would need to wait 15 months. They must first sell their house and then stay in temporary accommodation.

This is not applicable to those over 54 who are downgrading to a 4-room apartment or smaller. This temporary measure is intended to reduce the demand for HDB flats for resale.

Here are some temporary accommodations options for those who have to wait 15 months to be eligible.

Consider temporary accommodation options


renting is the first option most people think of. This is a great option for anyone who plans to move to another location. It allows you to get to know the area and its surroundings.

Rents are at an all time high, however. Before you decide to sell your home, make sure to research the current market rent rates in the area and type of your property. Determine how much you are willing to pay for the rental.


Co-living is another option. Co-living is a more flexible option. The minimum lease term is three months. Traditional rentals usually have a lease for one to two years.

Living room in a 3-bedroom condo available for rent at Hmlet.
Co-living is also an easy option, as all units are fully furnished and utilities are included in the rent.

You can move in with your parent/child

Moving in with your family is the best option.

This will depend on how well you get along with them and how much space they have in their home.

2. Assuming you have to only meet the TDSR

For those who plan to obtain a loan to purchase a house, this is even more important. For an HDB flat, there are more stringent loan requirements.

You must meet the 55% total loan servicing ratio (TDSR ) when you take out a private housing loan. This means that your monthly debt obligations should not exceed 55% of your household’s income. This includes your personal loan, car loan, and credit card. You can set aside 55% from your monthly income to pay your housing loan if you do not have any other loans. You may also be eligible to borrow a larger amount.

However, in order to get a loan for a HDB flat you will need to meet the 30% mortgage servicing rate (MSR). Your monthly loan amount will be reduced by 30% due to this restriction.

LISTING YOUR PROPERTY? Do you want to find out how much your property is worth. Perhaps you are thinking of selling your property. Contact us and we’ll get in touch with a consultant!

3. After the 15-month period, you can buy the HDB flat for resale.

Listen to me first. This is a big mistake if you are trying to get CPF housing grants or HDB loans.

These grants and loans are not available to everyone. You will need to wait 15 months before your HDB flat can be purchased with the grant or loan.

CPF Housing Grants (apart PHG) are not available to you.

HDB resale apartments are a great way to receive grants up to S$160k if you’re first time applying for subsidised housing. These grants include the Family Grant, Enhanced Housing Grant (EHG), and Proximity housing Grant (PHG).

However, if you are downgrading from private property into an HDB flat resale apartment, you will have to wait for the Family Grant and EHG to be available.

The Proximity Housing grant is available at any time. This grant is available to anyone who has not received it previously and whose new home is within 4km of their child or parents.

Our Radius Search Filter allows you to search for houses within 4km radius of your child/parents.

You cannot apply for the HDB Housing Loan

Singaporeans can get up to two HDB housing loans.

The HDB concessionary loans are more appealing than bank loans right now. Its interest rate is 0.1% higher than the prevailing CPF OA (currently at 2.5%). A 2.6% interest rate in this high-interest rate environment is considered low. This is especially true when banks have increased their fixed home loan interest rates to 4.5%.

Private property owners, however, are not eligible for HDB loans, as they are not eligible for the CPF housing grants.

It’s difficult to predict if interest rates will drop in the next few years, which will make bank loans more appealing. It’s still a good idea to have another option than bank loans. This is especially true if you prefer to pay fixed monthly instalments.

Are you looking to downgrade or right-size your private property to an HDB apartment? Let us help you connect with a property consultant.

If this article was helpful to you, recommends You can upgrade your property to with cooling measures in place for December 2021 or September 2022. Here are 6 steps and signs to help you determine if there have been unrealised gains to your house.

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