Key Difference Between HDB Resale Flats and BTO Flats in Singapore

Key Difference Between HDB Resale Flats and BTO Flats in Singapore

HDB resale flats in Singapore are already built flats that are on resale while BTO (Built to Order) flats are the ones that are built on prior order basis. Usually, people think HDB Resale flats are more expensive than BTO flats but, this is not true, and at the same time, some people consider BTOs as costlier than HDB resale flats

 The house prices keep fluctuating, according to the needs, and demands of the home buyers in the locality and from region to region. HDB flats are built, with more floor space as with time cost per square meter keeps rising with time while in BTO floor space may be reduced or will contribute to add more cost if demand is high.

Highlights on the differences:

1. BTO flats are built by the government of Singapore on demand of the buyer or citizen, while HDB resale flats are the ones that are sold, in the open market after completing the previous tenancy.
2. BTOs are directly bought from HDB by buyers, while HDB flat, is bought from its previous owner.
3. BTOs price varies, according to the number of rooms and how flourished is the surrounding estate, while resale flats price depends on the remaining lease of the flat.
4. BTO flats appear cheaper, as compared to resale flats, because BTO prices are optimized by the government during the launch, while HDB resale flats prices fluctuate with time, value and worth.
5. Prices of BTOs and resale flats may vary from region to region. 

Example1: 

Comparing prices of BTO in two areas viz. Sembawang and Toa Payoh. A 4-room BTO in Sembawang cost $272,000, while in Toa Payoh it cost $395,000 (statistics from Feb 2020).  

Example2: 

Comparing prices of Resale flights in the same regions. A 4-room resale flat in Sembawang cost $351,000, while in Toa Payoh its price was $539,000.
6. HDB has a CPF housing grant bonus for first-time buyers as a family, which is not granted in the case of BTOs.
7. BTOs built these days are having less space than old flats for resale, viz. BTOs are built over 90 squared meters, while on average, the resale flats cover 104 squared meters.
8. Sometimes in the case of resale flats, even if you found a cheaper flat as compared to BTO, you look forward to renovation according to your design, then the cost may rise above BTO. In that case, buying a BTO is a better choice.

Wrapping Up 
If you are looking for more space, resale flats can do for you as they are allowing you grants if you are a family and an additional bonus grant if you buy a home near your parents' house(within a 4km area). Although it is believed HDB resale flats in Singapore  lose their value and price, having an older lease. If you wish to resale in the future, it is of no purpose if compared with BTO as the lease gets shorter with time. So, both BTO and HDB Resale flats have their pros and cons. 

If you wish to invest in the name of selling and reselling, BTO is a better choice, while for cheaper housing property with all the grants valid, you should go for HDB resale flats. A bonus grant for first-time buyers as a family is $50,000, with an additional bonus grant of $20,000 if buying near your parents' house. HDB Resale Flats in Singapore is worth investment.