The Evolving Definition of Housing Upgrades in Singapore: Why Larger HDB Flats Are Gaining Favor Over Condos in 2026

Traditionally, Singaporeans aspiring to a better living environment often envisioned upgrading from a Housing and Development Board (HDB) flat to a condominium or executive condominium. However, observations in 2025 indicate a significant shift in this pattern, with an increasing number of homeowners choosing to upgrade to larger HDB flats instead. This report aims to dissect the underlying reasons for this evolving trend. The analysis reveals that factors such as the escalating costs of condominiums, a heightened emphasis on spacious living and location-specific conveniences, the growing importance of family needs and familiar surroundings, and changing perceptions regarding the significance of central locations are collectively contributing to this re-evaluation of housing aspirations. 

Ultimately, this shift suggests a move towards a more pragmatic approach to housing decisions, where practical needs and financial prudence are taking precedence in the current market landscape.

2. Introduction: Redefining the Housing Upgrade in Singapore:

For many years, the concept of a housing "upgrade" in Singapore has been intrinsically linked to moving from public housing to private property. This aspiration was often fueled by the perceived higher social standing associated with condominium ownership, the allure of exclusive facilities such as swimming pools and gyms, and the expectation of greater capital appreciation. It is safe to say many first timer home buyers perceived BTO as the "First Pot of Gold" to eventually progress to a condominium or executive condominium when the financial resources allow. However, recent trends in 2025 seem to point towards a notable deviation from this established norm. A growing segment of the population is now opting to move to larger HDB flats, such as 5-room or executive apartments, instead of venturing into the private property market. This emerging preference suggests a potential transformation in how Singaporeans define an "upgrade," indicating that factors beyond just property type are now playing a more significant role in their housing decisions. This report aims to explore the multifaceted reasons behind the change in upgrading preferences, examining the various economic, social, and personal considerations that are influencing homeowners' choices.

3. The Economic Imperative: Condo Prices and Affordability:

A primary driver behind the increasing inclination towards larger HDB flats is the significant rise in condominium prices, particularly in the period following the COVID-19 pandemic.

Consider the experience of Scot, a Permanent Resident, and his Singaporean wife. Initially residing in a 4-room HDB flat, their aspiration was to upgrade to a resale condominium like Signatures @ Yishun. This aligns with the conventional understanding of housing progression in Singapore. However, unforeseen delays (supposed to purchase in Q3 2020) in their plans coincided with a substantial surge in condo prices. This price escalation had a direct impact on their affordability, leaving them with the feeling of being "priced out of the market" for a condominium unit that could comfortably accommodate their family. This situation underscores how external economic factors can dramatically alter housing plans, especially for those looking to move up the property ladder.

Upgraders often rely on the equity from their existing property to finance their next purchase, but a rapid increase in the target market's prices can outpace these gains, making the desired upgrade financially unattainable. Faced with this affordability challenge, Scot and his wife made a pragmatic decision: they opted to purchase a larger HDB flat that provided comparable living space to their desired condo but without the hefty price tag. This decision highlights a crucial point – larger HDB flats are increasingly being viewed as a viable alternative for families seeking more room without the financial strain associated with condominium ownership.

This trend suggests a potential recalibration of the perceived value proposition between condominiums and larger HDB flats, where factors like square footage and overall cost are being weighed more heavily than the exclusive amenities often associated with condo living. The economic reality of escalating condo prices is therefore a significant factor pushing upgraders towards the larger HDB market, where they can find more space within their budget.

This shift in demand could potentially have a moderating effect on the demand for mass-market condominiums, particularly among families whose primary need is more living space and who are sensitive to price fluctuations.

From Condo to HDB 5 Rooms(comparable size, substantial cost differences)

4. Beyond Facilities: Prioritizing Space and Location-Specific Needs:

JH and her husband, for instance, initially harbored the typical aspiration of moving to a condominium in the east after the arrival of their first child. This desire was largely motivated by the appeal of condo facilities, which are often perceived as beneficial for families with young children. However, an unexpected opportunity arose for them to temporarily reside in JH’s sister's vacant 5-room HDB flat. This unplanned experience provided them with a direct comparison between their condo aspirations and the realities of living in a larger HDB space. During their time in the HDB flat, they discovered tangible benefits that surpassed the anticipated advantages of condo facilities. These included the sheer amount of living space available, the convenient proximity to good preschools, and the easy access to a wet market for daily necessities. Furthermore, they experienced a strong sense of community (social economic) within the HDB estate. This highlights the importance of practical, location-specific amenities that are often well-established in mature HDB estates, potentially offering more immediate benefits than some of the recreational facilities found in newer condo developments. The experience led JH and her husband to re-evaluate their priorities. They ultimately decided to purchase the HDB flat, prioritizing the larger living space, the convenience of nearby amenities, and the strong community feel over the swimming pools, gyms, and other facilities typically offered by condominiums. This decision signifies a change in what constitutes a desirable living environment for some families, where practical needs and community connections are gaining precedence over exclusive, private amenities. Another factor, they had also considered a potential change in income (from dual to single) as the family nest grow. 

5. Life events, Family Needs and Familiarity Trumping Central Location:

Evolving family circumstances and the significance of maintaining familiarity are also playing a crucial role in the trend of upgrading to larger HDB flats. Eng and his family were living in a small, older 3-room flat situated in a central location. This situation often prompts families to consider upgrading due to space constraints. Initially, Eng and his family explored the possibility of upgrading to a condominium in Toa Payoh, a mature and well-regarded residential area. However, their housing plans took a different direction when Eng's mother-in-law was diagnosed with early dementia. This unexpected life event significantly altered their housing priorities, highlighting how unforeseen family needs can become a primary driver in housing decisions. The immediate need for a larger living space to comfortably accommodate his parents-in-law became paramount. 

The emotional and psychological well-being of family members, particularly those with health conditions, can be a critical factor in housing choices, as familiarity and established social connections can be particularly beneficial for individuals with cognitive decline. This decision-making process reflects a growing awareness of the social and emotional aspects of housing, extending beyond just the physical attributes and investment potential of a property. Consequently, Eng and his family decided to settle for a 3 Generation flat in Yishun, a location close to his parents' previous home. 

6. Challenging Perceptions of Distance and Location:

Eng's experience also sheds light on a potential shift in how Singaporeans perceive the importance of central locations. He posits that given Singapore's relatively small geographical size, most places are easily accessible within a short travel time. This perspective suggests that the efficiency of Singapore's transportation infrastructure 8 in 10 households within 10 mins' walk to a station - Improvedcity-wide connectivity and shorter travel times, LTA) is playing a role in altering traditional views about the desirability of central living. With an extensive and reliable public transport network, the perceived disadvantage of residing in non-central areas is diminishing for some individuals. This evolving mindset directly contributes to a greater willingness to consider larger HDB flats in more suburban locations as viable upgrade options. The trade-off between potentially lower prices and significantly larger living spaces in non-central areas becomes more appealing when accessibility is not perceived as a major impediment. Homebuyers are increasingly weighing the benefits of increased space and affordability against the traditional premium associated with central locations. This shift in perception could potentially lead to a decentralization of housing demand, with more people open to living in areas that were previously considered less desirable due to their distance from the city center. This could have broader implications for urban planning and the development of amenities in suburban regions, as demand for housing in these areas increases. Therefore, changing perceptions of distance and location, facilitated by Singapore's efficient transportation network, are making larger HDB flats in non-central areas a more attractive upgrade option for a growing number of Singaporeans. The perception of Singapore as a highly accessible nation makes larger HDB flats in non-central locations more appealing as upgrade options. This could result in increased demand and potentially higher prices for larger HDB flats in well-connected suburban areas.

7. Conclusion: A Re-evaluation of Housing Aspirations:

The experiences of Scot, JH and Eng collectively illustrate a discernible trend in Singapore's housing market: a growing number of Singaporeans are redefining what constitutes a housing "upgrade." The decision to move to a larger HDB flat instead of a condominium in 2025 is driven by a confluence of factors, including the increasing unaffordability of condominiums, a greater emphasis on the need for more living space, the specific advantages offered by certain HDB estate locations, and the evolving priorities arising from changing family needs and a reassessment of the importance of central locations. While the aspiration of owning a condominium remains a long-term goal for many Singaporeans, the current market conditions and evolving personal priorities are leading to a more pragmatic approach to housing decisions. This shift underscores a focus on practical needs and financial considerations in the current housing landscape, where the traditional hierarchy of housing types is being challenged by the tangible benefits offered by larger HDB flats. 

Perhaps, this evolving perspective on housing upgrades could have long-term implications for the demand and supply dynamics within the Singaporean real estate market. 

Table 1: Comparison of Factors Influencing Upgrade Decisions