For years, the Singaporean dream has included one significant milestone: upgrading from an HDB flat to a private condo. But with today’s skyrocketing property prices and stricter financial regulations, is this dream still within reach for the average working professional?

More importantly, is 35 still the magic number for this move, or has the goalpost shifted?

Let’s break it down—and explore whether this is still a realistic or increasingly impossible financial goal.

Why 35 Has Always Been the Ideal Age for Upgraders

In an ideal world, upgrading while you’re still young makes sense. The younger you are, the easier it is to secure longer loan tenures and maximize your borrowing potential.

Here’s why 35 has traditionally been the target age for many upgraders:

-Maximum Loan Tenure – Banks typically offer a 30-year tenure or up to age 65, whichever is lower. This means a 35-year-old can still qualify for the longest repayment period, keeping monthly installments manageable.

-Stronger Financial Position – By 35, most Singaporeans have at least a decade of CPF contributions under their belt, offering a decent amount for the down payment.

-Avoiding Loan Restrictions Later – Once you hit your 40s or 50s, loan tenures shorten, and banks become stricter, making upgrading riskier.

But is all this still relevant today?

The Harsh Reality: Property Prices Have Changed The Game

In 2025, Singapore’s real estate market is nothing like it was a decade ago. Private condo prices have surged, and even resale units are far from affordable for middle-income earners.

Here’s a snapshot of what a realistic upgrade looks like today:

Average new launch condo price: $2,200 per square foot (psf)

Average resale condo price: $1,600 psf

A typical 3-bedroom resale condo (1,000 sq. ft.): $1.6 million

With these numbers in mind, let’s look at what it actually takes to upgrade from a 4-room HDB to a condo by 35.

Crunching the Numbers: Can the Average Couple Afford It?

Let’s assume our upgrading couple earns a combined household income of $11,000 per month ($5,500 each). They decide to go for a $1.6 million resale condo to keep costs more reasonable.

Here’s the financial breakdown:

• Initial Down Payment (25%): $400,000
• Buyer’s Stamp Duty (BSD): $49,600
• Additional Amount Due to TDSR Limits: $53,000
• Total Initial Outlay: $502,600
• Minimum Cash Requirement: $80,000 (the rest can be from CPF)

Now, let’s factor in the proceeds from selling their 4-room HDB:

If their flat sells for $624,000, they still need to clear their outstanding home loan (~$285,000).

This leaves about $339,000 in net proceeds, but a portion must be refunded to CPF.

CPF Refund Calculation: If they previously used $200,000 from their CPF for their HDB, that amount (plus accrued interest) must be refunded.

After the CPF refund, their actual cash proceeds could be between $139,000 and $189,000.

Total CPF Available (After Refund): Once refunded, they can still use their CPF savings (both newly refunded and existing balances) for the next property.

Final Calculation:

To afford the upgrade, they must still have $313,600 to $363,600 in CPF savings or cash—which is only possible if they’ve been aggressively saving since their 20s.

The biggest problem? The monthly loan repayment.

-With a 25-year loan of $1.2 million at 4% interest, the monthly mortgage would be $6,334.

-This exceeds the Total Debt Servicing Ratio (TDSR) limit, meaning they need to reduce the loan amount or increase their down payment.

So, is this upgrade possible? Technically, yes—but it’s a stretch for most average earners.

The Importance of Financial Calculations & Safety Net Planning

Beyond just meeting the initial down payment and loan criteria, long-term financial stability must be considered. What happens if one spouse loses their job or income unexpectedly drops?

-Emergency Fund: Experts recommend at least 6 to 12 months’ worth of expenses in cash savings before committing to a major financial move like upgrading.

-CPF Buffer: CPF contributions should be calculated carefully—ensure there’s enough buffer for mortgage payments, as a depleted CPF balance can lead to future cash shortfalls.

-Loan Stress Testing: Consider scenarios where interest rates rise to 5% or 6%—if you can’t handle the increased payments, it’s a sign that the upgrade might be too risky.

Is Waiting the Better Option? Maybe, Maybe Not.

Many might think, “Why not just wait a few more years and upgrade later?”

But delaying an upgrade comes with its own risks:

Property Prices Keep Rising – If private home prices increase 15% over five years, that same resale condo will now cost $1.84 million. This means a higher down payment and larger loan amount, making it even harder to afford.

Shorter Loan Tenures Mean Higher Monthly Repayments – By age 40, the max loan tenure drops to 20 years, pushing the monthly mortgage beyond $8,360, which may no longer fit within TDSR limits.

More Competition – As more people accumulate wealth over time, demand for condos will only increase, making it harder to secure a good deal.

Waiting might be an option, but it’s important to weigh the potential long-term financial burden.

 

Upgrading to a condo by 35 is no longer as easy as it once was. While possible, it now requires:

1. Aggressive saving habits in your 20s

2. Careful financial planning to ensure affordability

3. Considering smaller condo units (like a two-bedroom instead of a three-bedroom)

4. Being open to resale units in less central locations

For middle-income Singaporeans, the condo dream isn’t dead—but it’s no longer a given.

The Bottom Line: Are You Financially Prepared?

The answer depends on your savings, income stability, and long-term financial goals. Without proper planning, an upgrade can quickly become a financial strain rather than an achievement.

Before making the leap, do your calculations, plan for contingencies, and ensure you’re financially ready—not just for the initial purchase but for the years ahead.

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