As people spent more time at home during the pandemic, we increasingly value the benefits of having more space at home. Instead of getting by with just the minimum, more people are spending more not just to buy a bigger home but also spending more effort to improve their home environment.
This trend towards larger homes rings true even in our decisions to buy a BTO flat. 5-room flats in mature estates consistently remain highly subscribed. These larger flats are even more desired by second-timer households. During the recent August 2022 BTO launch, 5-room BTO flats in mature estates were about 180 times oversubscribed by second-timer households.
So, what makes these flat types so desirable (especially among second-timers), and are we always better off choosing a 5-room flat?
Read Also: Complete Guide To Buying A 3Gen HDB Flat In Singapore
5-Room And 3Gen Flats Are The Largest Flat Types Offered By HDB And Priced Similarly
Of the types of new BTO flats offered by HDB, 5-room flats and 3Gen flats are the largest at more than 100sqm. While there are other larger flat types, such as executive and jumbo flats, these flats are only available on the resale market and do not enjoy the HDB subsidised prices of BTO flats.
For reference, we would take the August 2022 BTO launch when both 5-room and 3Gen flats were offered in the same estate: Central Weave@AMK. During this launch, 39 units of 3Gen flats were released together with 333 units of 5-room flats.
| Central Weave@AMK | 5-Room Flat | 3Gen Flat |
| Size | 113 sqm | 120 sqm |
| Price | $720,000 to $877,000 | $713,000 to $842,000 |
These flats were oversubscribed by 181.7 times by second-timer households. (Note: HDB doesn’t separate 3G and 5-room flats in the application rate results).
Read Also: What Are HDB Jumbo Flats And How You Can Own One?
5-Room Flats Are More Plentiful
One of the main reasons for 5-room flat’s popularity is their relative abundance and the fact that they carry no additional restrictions.
While rare in centrally located mature estates, 5-room flats can be found in every BTO launch. However, the same cannot be said for 3Gen flats. In fact, the Central Weave@AMK was the first BTO project to have 3Gen flats since Canberra Vista during the February 2020 BTO Launch. That is a gap of 9 BTO launches or more than 2 years.
For most families looking for a larger home, waiting for a 3Gen flat to be offered may be a wait that will be too long. Most households would choose a 5-room flat because it was the largest flat option available when they were balloting for a BTO flat.
3Gen Flats Have Additional Restrictions
Unlike the regular 3-room, 4-room and 5-room flat types, 3Gen flats are targeted at multi-generation families and have additional eligibility conditions.
To buy a 3Gen flat, you must be a Singapore Citizen (SC), include one other SC or Singapore Permanent Resident (SPR) and have at least one parent be an SC or SPR. 3Gen flats may only be bought by a multi-generation family and sold to another multi-generation family
According to HDB, a multi-generation family comprises a married or engaged couple and their parent(s) or a widow/widower/divorcee with children under their legal custody, care, and control and their parent(s). At least one parent must be a Singapore Citizen or Singapore Permanent Resident (SPR), while the couple must be eligible to buy a BTO flat in their own right under the Public Scheme or Fiancé/Fiancée Scheme
Your parent(s) must also be listed as essential occupier(s). This means that your parents cannot own any other residential property, HDB, or private. They are also tied to the same 5-year Minimum Occupancy Period (MOP).
Additionally, the subletting of rooms is not allowed during the five-year MOP.
Read Also: What Landlords Need To Know Before Renting Out Their HDB Flat or Bedroom In Singapore
3Gen Flats Are Slightly Larger And Have Another Ensuite Bedroom
On average, 3Gen flats are slightly larger at about 115sqm. The ones offered in Central Weave@AMK were 120sqm with an internal floor area of 115sqm. This is just slightly larger than the typical 5-room flat that is around 110sqm.
However, 3Gen flats have a unique feature that makes that perfect for multigenerational living: the additional master bedroom and ensuite bathroom. The second master bedroom and its attached bathroom can be a dedicated living space for grandparents, while the parents and children have their own space in remaining master ensuite and bedrooms.
The additional ensuite bedroom gives privacy between grandparents and parents. This can be much appreciated to reduce any family friction as well as having a private space to retreat to in moments of conflict
Floor plans of 5-room and 3Gen flats for Central Weave@AMK
5-Room Flat Makes More Sense If You Intend To Sell
For families that anticipate eventually moving out of their flat, whether it is to upgrade to a better residence, change location or downsize to a smaller flat, choosing a 5-room flat is likely to be a better choice.
The ubiquity of 5-room flats means that they are familiar and thus relatively easy to sell to a large range of buyers. However, 3Gen flats’ requirement to only sell to multigenerational households is an additional requirement that may require additional marketing effort or at least diligence on the buyer’s side to ensure that they meet the requirements.
In a resale situation, 3Gen flat owners may find themselves with a smaller pool of potential buyers and potentially a less lucrative selling price.
3Gen Flat Is Great For Families Who Wish To Stay For The Long Term
For multi-generational families, 3Gen flats are ideal. Not only does the layout with the additional master ensuite make perfect sense for grandparents to live in the same household, the ensuite bedroom can also be a marital suite for the eventual day when the child gets married. The flexibility of having additional ensuite makes 3Gen flat suitable for living long-term.
While the restrictions on eligibility for sale make it harder to sell a 3Gen flat, the additional ensuite actually makes it more attractive for renting. 3Gen flats are only restricted from renting out their bedrooms during MOP. Upon the completion of MOP, 3Gen flats are great for generating rental income as the separation of the second master ensuite means that your family can continue living in the same flat while maintain some degree of privacy.
This flexibility makes 3Gen flats perfect for families who intend to stay for the long haul. Married couples can live with their parents and support them in their senior years. As they age, they can either set aside one master ensuite as a marital space for their child or use it to generate passive income in their retirement.
Regardless, choosing between 5-room and 3Gen flats really depends on your family circumstances and timing. The limited availability of 3Gen flats may limit you from choosing it even if it is a better choice for your multigenerational household.
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