Constantine Koh – SG Property Consultant

HDB Illegal Subletting – What You Must Know: Real Cases and Consequences

Our HDB flat isn’t just a place to live — it can be a powerful asset. If you are thinking of generating extra income from your flat, you’ve likely asked:

Should I rent out a room… or sell the whole flat?

At CKRealtySolutions, I help homeowners weigh both options. Here’s a practical breakdown to help you decide what works best for your financial goals and lifestyle.

Option 1: Renting Out a Room for rental income

“Extra income while staying in your home.”

If you are comfortable sharing your space, renting out a room can give you a steady monthly income without giving up ownership of your flat.

✔ Pros:

  • Passive income of $700-$1,000/month, depending on location and room type

  • Keep your flat and continue to stay in it

  • No major upfront decisions required

✖ Cons:

  • Need to live with a tenant (privacy & lifestyle adjustments)

  • Must comply with HDB rules (e.g. owner must be present, non-citizen limits)

  • Flat value might decrease with age

💡 Good for: Homeowners who want to supplement income during retirement or while planning their next move.

Option 2: Selling the Whole Flat for a lump sum

“One-time payout. Full exit. Clean slate.”

If your flat has appreciated significantly, selling now may allow you to unlock six-figure gains, which you can use to downsize, invest, or fund retirement.

✔ Pros:

  • Immediate cash-out — often $200K–$400K+ net proceeds for eligible flats

  • No need to deal with tenants or maintenance

  • Opportunity to right-size or reinvest in a new property

✖ Cons:

  • One-time gain (vs. recurring rental income)

  • You’ll need to secure a new place to stay

  • Emotional attachment — it’s not always easy to let go

💡 Good for: Owners planning retirement, right-sizing, or seeking investment opportunities.

So… Which One Should You Choose?

It depends on your situation. Here’s how we typically advise:

If You…

 
 
 
 

Can consider…

 
 
 
 

Need a monthly income but want to keep the flat

 
 
 
 

Renting out a room

 
 
 
 

Want to cash out and move on

 
 
 
 

Selling the whole flat

 
 
 
 

Plan to upgrade or invest in a second property

 
 
 
 

Selling (and reinvesting)

 
 
 
 

Want to stay put for now

 
 
 
 

Renting a room (as a short-term solution)

 
 
 
 

Final Thoughts from CKRealtySolutions

Every HDB owner’s situation is unique. Whether you are planning for retirement, downsizing, or just exploring options, the best decision starts with knowing your numbers.

📊 We help you:

  • Estimate your flat’s current market value

  • Calculate real net proceeds after CPF refunds and fees

  • Compare cash flow from renting vs. selling

  • Plan your next move with zero guesswork