Keeping your HDB flat after buying a private condo is allowed but triggers 20% ABSD on the condo (Singapore Citizens second property). Singaporeans cannot rent out the HDB while owning a private property unless the HDB is past its 5-year MOP. PRs lose HDB eligibility entirely upon buying private property — they must sell the HDB within 6 months.
Singapore Citizens: keep HDB rules
| Item | SC keeping HDB |
|---|---|
| ABSD on condo | 20% (second property) |
| HDB still subject to MOP rules | Yes |
| HDB rental during MOP | Prohibited if owner not residing |
| HDB rental post-MOP | Allowed (whole-flat rental) |
| Condo as primary residence | Permitted |
Source: HDB framework.
PRs: must sell HDB
Permanent Residents who buy private property must dispose of their HDB flat within 6 months. PRs cannot hold both HDB and private property simultaneously. Penalty for non-compliance: HDB repossession of the flat.
When keeping HDB makes financial sense
| Scenario | Keep HDB | Sell HDB |
|---|---|---|
| HDB rental income (post-MOP) | +S$30k/yr | — |
| Condo ABSD (S$1.5M) | −S$300k upfront, NOT refunded | −S$0 (first-time) |
| HDB capital appreciation | ~3-5% per year | Sale proceeds invested elsewhere |
| Net 10-yr math (S$1.5M condo + S$500k HDB) | ~Slight edge keep | ~Slight edge sell |
The math is approximately even over 10 years — keeping HDB adds rental income but costs S$300k ABSD (permanent). Selling HDB frees the S$300k for condo equity but loses HDB rental.
See complete upgrade framework.
FAQ
Can I rent HDB during MOP if I move to condo?
No. HDB requires at least one owner to reside in the flat during MOP. Whole-flat rental is prohibited.
Is HDB rental income taxable?
Yes. Net rental income (after expenses) is taxable in personal income tax.
What if my MOP is not yet completed?
You cannot buy private property if your HDB is still in MOP — HDB rules prohibit private purchases during MOP.