Is It Worth the Cost? The Benefits of Moving to a Condo in 2023

by | Mar 29, 2023

Are you dreaming of a condo upgrade? As the real estate market heats up in 2023, now is a great time to consider making a move. In this blog post, we’ll discuss why now might be the right time to upgrade to a condo, and how you can maximize your investment. Read on for all the details!

Pros and Cons of Upgrading to a Condo in 2023

Upgrading from public housing to a condo in 2023 can be a great investment option. Condos can provide a range of advantages, such as the ability to include appliances in the sale and the potential for higher rental incomes. However, condos can also be more expensive than other types of housing, and buyers must factor in renovation costs and GST hikes. Additionally, understanding the Minimum Occupation Period (MOP) is key to ensuring that you don’t miss out on any potential rental income. With careful research into the market and a clear plan for your property, investing in a condo in 2023 can be a lucrative option.

Factoring in the GST Hike

When it comes to upgrading to a condo in 2023, one of the most important things to consider is the Goods and Services Tax (GST) hike. From 1 January 2023, the GST rate will increase from 7% to 8% and will be further increased to 9% in 2024. This could have an impact on the cost of purchasing a flat or apartment in an under-construction project, as buyers are liable to pay GST on their purchase. Additionally, with GST applied to movable furniture and fixtures, prices for furnished properties are likely to see a hike as well. For those looking to upgrade, it is important to keep these changes in mind when calculating the financials of their purchase. Moreover, one should also factor in the Minimum Occupation Period (MOP) when deciding whether it is a good time to make such an investment.

New Launch Projects in Q1 2023

In Q1 of 2023, there are a number of new launch projects that are set to hit the market. For those looking to upgrade to a condo in 2023, it is important to consider the pros and cons of such projects. It should also be factored in that the GST hike will affect the cost of such projects. When researching these new launch projects, potential buyers should consider the financials, understand the Minimum Occupation Period (MOP) as well as factor in renovation costs and financing costs. With an understanding of these factors, potential buyers can make a more informed decision when it comes to upgrading to a condo in 2023.

Financials are Key

Financials are key when considering whether or not to upgrade to a condo in 2023. Before making the decision to upgrade, it is important to factor in the GST hike, new launch projects, renovation costs, and financing costs. All of these costs can add up and need to be taken into account in order to make an informed decision. While some of these costs may be offset by rental income, it is important to do your research and understand the local market before making any decisions. It is also important to understand the Minimum Occupation Period (MOP) when it comes to HDB flats and the potential for property demand to be choked by financing costs. Lastly, one needs to consider the outlook for property prices in 2023 and whether or not HDB will be a lucrative investment from that point onwards.

Understanding the Minimum Occupation Period (MOP)

When considering whether to upgrade to a condo in 2023, it is important to understand the Minimum Occupation Period (MOP). For most HDB properties and Executive Condominiums, the MOP is five years and until this period has been completed, homeowners are obliged not to sell their property. HDB introduced a new Prime Location Public Housing scheme (PLH) in October 2021 with an unprecedented MOP of 10 years, double the duration of that of regular HDB properties. With the resale market expected to see a new batch of homes having completed their 5-year minimum occupation period, many homeowners will be looking to upgrade to a private condo. However, it is important to factor in all costs associated with such an upgrade including renovation costs and potential financing costs. It may be more prudent for some homeowners to consider renting out their HDB flat instead. Either way, understanding the MOP and its implications is key when making this decision.

Renovation Costs and Financing Costs

Renovation costs can be an important factor to consider when upgrading to a condo in 2023. While the GST hike may increase the cost of new launch projects, borrowers can finance renovations that cost up to 75 percent of the property value. For example, a $200,000 house that needs $25,000 in repairs or upgrades can be financed with a loan of up to $150,000. This is important for those looking to upgrade as it provides access to funds needed for renovations. Understanding the financing cost associated with a renovation is also key, as it will determine how much extra money you need to borrow. With rising home loan rates in 2022, it’s more important than ever to ensure that you’re budgeting properly when considering your renovation costs and financing cost.

The Pros and Cons of Renting Out an HDB Flat

One of the key considerations when upgrading from an HDB flat to a condo is the option of renting out the former. This is because the rental income from an HDB flat could potentially offset some of the costs associated with purchasing and maintaining a condo. However, there are a few pros and cons to consider before making the decision to rent out an HDB flat. On one hand, it could be a great way to generate extra income, as HDB flats tend to fetch higher rents than condos due to their relatively lower prices. On the other hand, there are a few eligibility conditions that must be met in order to rent out an HDB flat, such as having a minimum annual household income or being over the age of 35. Additionally, maintenance costs can add up quickly when renting out an HDB flat, especially if it is an older property. All in all, understanding your finances, lifestyle, and long-term goals is key when deciding whether it is worth upgrading from an HDB flat to a condo.

Will Property Demand Be Choked by Financing Costs?

The current market conditions present a unique opportunity for those looking to invest in property in 2023. With rising interest rates, buyers will need to factor in the cost of financing when considering their purchase. This could lead to a decrease in demand for properties as buyers may be put off by the additional costs. However, with government intervention and the introduction of mortgage caps, it is possible that these costs may not be as prohibitive as they seem. As such, it is important to consider the pros and cons of each option before committing to any purchase.

What is the Outlook for Property Prices in 2023?

The outlook for property prices in 2023 remains uncertain, although experts expect the median US home-sale price to drop by roughly 4%, according to Redfin deputy chief economist Taylor Marr. In the Philippines, interest rates are expected to rise and vacancy in the secondary market is likely to drop to 17%, which could increase demand and boost real estate prices. In Singapore, Colliers expects the delivery of 5,600 new condominium units in 2023, which may drive up competition and cause prices to fluctuate. However, it is important to factor in rising financing costs and GST hikes when considering an upgrade to a condo in 2023. Ultimately, it is essential for prospective buyers and investors to consider their financials closely before making any decisions.

Is HDB a Lucrative Investment From 2023 Onwards?

HDB flats have long been considered a safe investment, with their prices remaining relatively stable and benefits such as grants and subsidies from the government. In 2023, HDB prices are expected to continue to increase, with market rents also seeing an increase since the last revision of annual values on Jan 1, 2022. This is good news for potential investors looking to purchase an HDB flat in 2023 as it could be a lucrative investment opportunity. However, potential investors should also take into consideration the GST hike and financing costs that may arise from purchasing an HDB flat. Furthermore, they should be aware of the Minimum Occupation Period (MOP) of the HDB flat before deciding if this is the right investment for them.


Overall, it appears that upgrading to a condo in 2023 may be a wise decision. For many people, the condo lifestyle offers more space, amenities, and increased security. However, it is important to consider all the associated costs and potential risks before making a decision. Additionally, it is important to research the local market trends and analyze the financials carefully. It is also important to understand the GST hike, as well as the MOP and renovation costs. Finally, it is essential to consider whether renting out an HDB flat or investing in HDB flats would be a more lucrative option. Whether you decide to upgrade or not will depend on your individual circumstances and financial situation.