What Impacts Resale HDB Value Most? Location, Layout, or Renovation?

Key Takeaways:

• The location of the HDB flat, its renovation condition, and layout all directly affect resale pricing.

• Buyers are drawn to spacious, move-in-ready homes in accessible areas.

• Lease length also influences financing options and long-term value.

As HDB resale value continues to rise, with a 9.7% increase reported in 2024 and further growth expected in 2025, it is more important than ever for buyers and sellers to understand what drives the resale price of a HDB flat. Whether you are planning to sell or looking to invest, it helps to know which aspects carry the most weight in determining market value.

From accessibility to unit size and renovations, several key elements influence buyer perception and price. Let us break down the top factors that impact your flat’s potential.

1. Location Is Key

The location of the HDB flat remains the single most influential factor in determining resale value. Properties situated near MRT stations, reputable schools, hawker centres, and shopping malls are consistently in higher demand. In particular, flats in mature estates such as Bishan, Queenstown, and Toa Payoh typically fetch better prices due to their established amenities and central location.

For families, proximity to schools is also a strong pull; and for working professionals, being within walking distance of a public transportation hub. In other words, convenience plays a large role in daily life, which is why the HDB resale value in well-connected areas tends to be significantly higher.

2. Renovation and Condition Add Appeal

The state of the flat significantly affects its marketability. A flat that has been well maintained or professionally upgraded naturally stands out in listings. Buyers are more likely to pay a premium for a unit that is move-in-ready, modern, and visually appealing.

Renovation and condition go hand in hand, and are especially important in older flats, where vital updates can make the space feel brand new. In fact, a flat with recent renovations may fetch a higher price with Cash-Over-Valuation (COV), especially when the style is clean, neutral, and widely appealing. From upgraded bathrooms to built-in wardrobes, good HDB home renovation can help increase the flat’s resale value.

3. Size and Layout Matter

Naturally, size and layout play a major role in pricing. Larger units such as 5-room flats, executive apartments, and maisonettes often attract bigger families who are willing to pay more for space. These types of units also offer better long-term flexibility, such as creating a home office or accommodating multigenerational living.

However, it is not just about square footage. The flow and functionality of the layout also matter. A well-planned interior that makes clever use of space will appeal more to potential buyers than an awkward floor plan that wastes corners or restricts furniture placement. This is where resale HDB interior design can make a difference, improving how the space looks and feels before it goes on the market. In short, investing in small but crucial renovation works could pay off in terms of fetching a higher HDB resale value.

4. Remaining Lease Affects Loan Eligibility and Value

The lease duration of your flat has a direct impact on its financing eligibility and appeal. Buyers looking for long-term homes often prioritise flats with at least 80 to 90 years of lease remaining. Flats that have recently reached their Minimum Occupation Period (MOP) tend to be more desirable because they come with a fresher lease, newer fixtures, and less wear and tear.

Conversely, flats with less than 60 years left may not be as sought-after. Restrictions on CPF usage and tighter bank loan eligibility make older flats less accessible, especially for first-time buyers. While older flats in great locations still hold value, lease length can be a limiting factor when determining the HDB resale value.

HDB resale value is shaped by four main factors: location, the condition of the home, its size and layout, and the number of years left on its lease. Flats that tick all these boxes are the ones that command higher prices and quicker sales. Focusing on these key aspects can help maximise your property’s value.

Here at M2D Design and Consultancy, we specialise in HDB interior design that beautifies your home and improves its long-term value. From layout planning to styling and practical renovations, our team understands what buyers look for and how to deliver it. Whether you are moving into a new flat or preparing one for sale, our interior design services are tailored to meet your objectives.

For more information about our services and how we can assist you, please contact us today.