For many Singaporean couples, applying for a BTO flat marks the start of their life together. But in recent BTO sales exercises, intense competition has transformed this “rite of passage” into a daunting lottery.
The October 2024 BTO exercise revealed just how stiff the competition is, with 33,983 applicants competing for only 8,573 flats — a ratio of nearly four applicants per flat. Prime locations fared worse, with up to 6.7 applicants per unit.
This leaves unsuccessful applicants at a crossroads: try again or explore other housing options. Be it buying a resale flat, Sale of Balance Flat (SBF), or Open Booking, or turning to rentals instead, each choice comes with its own trade-offs in terms of cost, availability, and flexibility.
4 alternative options to BTO flats
- #1: Resale HDB: Immediate move-in, more choices, but costly
- #2: SBF (Sale of Balance Flats): Affordable with shorter wait, but limited in choice
- #3: Open Booking Flats: Quick and flexible, but stock is scarce
- #4: Renting: Immediate flexibility, but it doesn’t come cheap
- Total upfront costs: BTO vs Resale vs SBF vs Open Booking vs Renting (HDB, Condo)
- Get matched to resale and rental listings sent directly to your phone
#1: Resale HDB: Immediate move-in, more choices, but costly
If you’re looking for a home you can move into right away, resale flats are a great option. You’ll have the flexibility to choose from a wide range of locations, including mature estates with established amenities like schools, malls, and transport links.
However, resale flats tend to be pricier than BTO flats. You’ll need to factor in additional costs like Cash Over Valuation (COV), which can range from $10,000 to $50,000 depending on the flat and area.
While grants like the Enhanced CPF Housing Grant and Proximity Grant can help offset the cost, you’ll need sufficient savings to cover the higher upfront expenses. Also, be aware that older flats may have shorter leases, which could affect their long-term value.
| Expense | Amount | Notes |
|---|---|---|
| Flat Purchase Price | ~$550,000 (4-room, non-mature) | Based on average resale prices. |
| Less: Grants | – $90,000 (EHG + PHG) | Up to $80,000 for EHG and $30,000 for PHG. |
| Cash Over Valuation (COV) | ~$30,000 | Paid in cash; varies by demand. |
| Downpayment (HDB Loan) | $55,000 (10% of purchase price or valuation, whichever is lower) | Payable via CPF OA. |
| Monthly Mortgage (HDB Loan) | ~$1,980/month (over 25 years) | Assuming a 2.6% interest rate. |
| Buyer’s Stamp Duty (BSD) | $15,600 | Based on $550,000 price; payable via CPF or cash. |
| Legal Fees | ~$3,000 | Payable via CPF or cash. |
| Ohmyhome Agent Fees (1%) | ~5,500 | 1% of $550,000 purchase price, paid in cash |
| Total Upfront Costs | ~$54,100 in cash | Includes COV, legal fees, agent fees, and non-CPF payments. |
Key Takeaway: Resale flats offer immediate availability and flexibility but require higher upfront savings, primarily for COV and BSD.
#2: SBF (Sale of Balance Flats): Affordable with shorter wait, but limited in choice
If waiting years for a BTO flat isn’t ideal, the Sale of Balance Flats (SBF) scheme offers a quicker alternative. You can apply for flats leftover from previous launches or unsold units, with waiting times typically around six months to a year. You’ll enjoy the same subsidised prices and grant benefits as BTO buyers.
The downside? There’s less variety. SBF units are often in less popular locations, and you might have limited choices in terms of flat types and layouts. These flats are also highly sought after, so competition can still be stiff.
| Expense | Amount | Notes |
|---|---|---|
| Flat Purchase Price | ~$350,000 (4-room, non-mature) | Based on subsidised pricing similar to BTO flats. |
| Downpayment (HDB Loan) | $35,000 (10% of price) | Payable via CPF OA. |
| Monthly Mortgage (HDB Loan) | ~$1,260/month (over 25 years) | Assuming a 2.6% interest rate. |
| Buyer’s Stamp Duty (BSD) | $6,600 | Based on $350,000 price; payable via CPF or cash. |
| Legal Fees | ~$2,000 | Payable via CPF or cash. |
| Grants | Up to $80,000 (EHG) | Based on income and eligibility. |
| Total Upfront Costs | ~$8,600 in cash | Mostly for BSD and legal fees; down payment from CPF. |
Key Takeaway: SBF flats combine affordability with shorter wait times (~6 months to 1 year) compared to BTO flats but have limited choices.
#3: Open Booking Flats: Quick and flexible, but stock is scarce
If speed is your top priority, Open Booking flats are your fastest route to homeownership. These are flats leftover from past launches, ready for immediate application. You can apply for a unit and move forward with your purchase in just weeks, making it perfect for those who need housing urgently.
However, Open Booking flats are limited in availability, and popular units — especially in prime locations — are snapped up quickly. To make this work, you’ll need to act fast and remain flexible about your choices.
| Expense | Amount | Notes |
|---|---|---|
| Flat Purchase Price | ~$350,000 (4-room, non-mature) | Similar to BTO/SBF pricing. |
| Downpayment (HDB Loan) | $35,000 (10% of price) | Payable via CPF OA. |
| Monthly Mortgage (HDB Loan) | ~$1,260/month (over 25 years) | Assuming a 2.6% interest rate. |
| Buyer’s Stamp Duty (BSD) | $6,600 | Based on $350,000 price; payable via CPF or cash. |
| Legal Fees | ~$2,000 | Payable via CPF or cash. |
| Grants | Up to $80,000 (EHG) | Based on income and eligibility. |
| Total Upfront Costs | ~$8,600 in cash | BSD and legal fees; down payment from CPF. |
Key Takeaway: Open Booking flats are ideal for buyers seeking speed but face limited availability and high competition for popular units.
#4: Renting: Immediate flexibility, but it doesn’t come cheap
If you need a short-term solution while waiting for your BTO flat or deciding on a more permanent home, renting is worth considering. It gives you immediate housing without the long-term commitment of buying.
But renting can be expensive. For a four-room HDB flat in a mature estate, monthly rent can exceed $2,000, which is significantly higher than a typical mortgage. If you’re considering a condominium, monthly rents start at around $3,500 for a smaller unit and can go up to $8,000 or more for larger or higher-end properties. While condos provide luxury amenities like swimming pools, gyms, and gated privacy, they come at a much higher price point.
Additionally, renting doesn’t build equity or contribute to your long-term financial goals, regardless of whether you’re renting an HDB flat or a condo. Because of this, renting is best seen as a temporary solution rather than a permanent one, unless your lifestyle or work demands it.
| Expense | HDB Flat | Condominium |
|---|---|---|
| Initial Costs | ||
| Security Deposit | $5,000 (2 months) | $11,000 (2 months) |
| First Month’s Rent | $2,500 | $5,500 |
| Stamp Duty | ~$120 | ~$260 |
| Total Initial Costs | $7,620 | $16,760 |
| Recurring Monthly Costs | ||
| Monthly Rent | $2,500 | $5,500 |
| Utilities | ~$200 | ~$300 |
| Wi-Fi | ~$50 | ~$50 |
| Air-Con Servicing (monthly)** | ~$10 | ~$20 |
| Total Monthly Costs | $2,760 | $5,870 |
Key Takeaways:
- HDB flats are more cost-effective with lower initial and recurring expenses, making them ideal for those on a budget.
- Condominiums offer luxurious amenities and privacy but come with significantly higher costs, suited for those who prioritise lifestyle and exclusivity.
- Overall, renting provides immediate flexibility but is the most expensive option over time, offering no equity or long-term financial benefit.
Total upfront costs: BTO vs Resale vs SBF vs Open Booking vs Renting (HDB, Condo)
| Property Type | Upfront Cash Needed | Monthly Mortgage/Rent | Waiting Time |
|---|---|---|---|
| BTO Flats | ~$8,600 | ~$1,260 | 3–5 years |
| Resale Flats | ~$48,600 | ~$1,980 | Immediate |
| SBF Flats | ~$8,600 | ~$1,260 | ~6 months to 1 year |
| Open Booking Flats | ~$8,600 | ~$1,260 | Immediate (~weeks) |
| Renting (HDB) | ~$4,000–$6,000 | ~$2,000 | Immediate |
| Renting (Condo) | ~$16,760* | ~$5,500 | Immediate |
*Additional notes for condo rentals:
- Upfront costs for condo rentals:
- Security Deposit: 2 months’ rent (~$11,000 for $5,500/month unit).
- First Month’s Rent: ~$5,500 upfront.
- Stamp Duty: 0.4% of total rent for leases longer than a year (~$260 for a 1-year lease).
- Recurring costs:
- Monthly rent is higher for condos due to premium amenities and prime locations, starting at ~$3,500 and averaging ~$5,500 for mid-range units.
- Additional utility and maintenance costs for larger units or luxury appliances may also increase monthly expenses.
Editor’s Note: While these figures aim to provide an accurate estimate, housing costs and availability vary widely depending on specific estates, flat sizes, and current market conditions. Additionally:
- Eligibility for CPF grants depends on your income and specific circumstances, so the final grant amounts might differ.
- COV varies significantly by flat and location and is influenced by real-time market demand.
- Rental rates can fluctuate based on market conditions and negotiations.
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