BTO vs Resale Price Breakdown: Which HDB Flat Type Should Singles Buy in Singapore (2024)
Buying a BTO vs resale flat is a dilemma many singles in Singapore face when they become eligible to purchase an HDB flat at 35. Of course, an alternative housing plan is private housing, which can be purchased at any age, but for most, Build-to-Order (BTO) or resale flats are usually the most financially accessible.
As announced during the National Day Rally 2023, those unmarried will have more choice in location as they now can buy 2-room Flexi for singles from all launched locations. But that doesn’t mean they should discount HDB resale flats. While HDB resale prices have reached highs, the majority of HDB resale flats remain affordable to first-time buyers.
So to solve the BTO vs resale flat debate, we will delve into what HDB flats can singles purchase in Singapore. In this article, we’ll be weighing the pros and cons of buying a 2-room BTO flat vs a resale flat in Singapore. We’ve picked these flat types as they are likely to be the most affordable options for most singles. Read on to find out more about BTO vs resale flats.
Watch Video on How to Buy an HDB Resale Flat for Singles
1. 2-Room Flexi for Singles: BTO Flats
First we’ll compare BTO flats for single persons. BTO flats are newly built flats that are subsidised by the Government and are ideal for those who prefer brand-new flats at an affordable price. While each BTO project will offer different types of units, there are only 2-room Flexi for singles.
The good news is those unmarried are no longer confined to applying for 2-room Flexi for singles in non-mature estates. In the October 2024 BTO launch, singles will have more location options and be eligible for any 2-room Flexi BTO flats in the Standard, Plus, and Prime BTO categories.
When it comes to BTO for singles, it’s important to know who your ‘competitors’ for a unit might be, so you can better weigh the odds of successfully balloting on your first try.
Almost Half Are for Senior Applicants
Typically, BTO exercises are largely popular among young couples and families, but there is not so much competition for 2-room flats. That said, 2-room flats are also open to seniors who may wish to apply for a unit to be nearer to their married children.
About 40% of 2-room Flexi flats in a BTO project are set aside for seniors, and they will be able to purchase the new flat on a shorter lease. So if you’re gunning for a BTO flat as a single, you might face some competition.
Not Every BTO Launch Has 2-Room Flexi for Singles
To top it off, not every BTO project offers a 2-room Flexi for singles in their unit mix. Of the 14 projects across nine locations, only Ang Mo Kio, Bedok (both Bayshore and Kembangan sites), Bukit Batok, Jurong West, Kallang/Whampoa (May Road), Pasir Ris, both Sengkang sites had 2-room Flexi for Singles.
That means there were 10 projects with 2-room Flexi for singles on offer. Singles could not ballot for some of the Kallang/Whampoa launches and the Geylang Oct 2024 BTO launch.
According to the Singapore Consumer Sentiment Study H1 2024, 37% of those polled believe the National Day Rally 2023 policy changes are sufficient to make housing accessible for singles. However, 68% of polled believe singles should be allowed to buy BTO flats larger than 2-room Flexi flats and 62% feel the age restriction should be lowered from 35 years old. Whether or not that will happen in the future, what we can do now is focus on what housing options singles have.
2-Room BTO Flat Vs Resale Flat Prices: BTO Vs Resale Price Comparison
Estate | BTO flat price | Transacted resale prices for a 2-room flat in the neighbourhood |
Jurong East | Teban Breeze, from $40,000 to $200,000 | $313,000 to $338,000 |
Woodlands | Marsiling Peak I & II, from $32,000 to $189,000 | $315,000 to $350,000 |
Yishun | Chencharu Hills, from $38,000 to $170,000 | $320,000 to $363,000 |
But say you found a suitable BTO project you like. What then? How much cheaper are BTO vs resale prices? We’ll compare the prices of 2-room Flexi BTO flats from the June 2024 BTO launch against the resale prices from the same estate, in the past six months as recorded on HDB’s resale portal (as of 8 August 2024).
Looking at the recent 2-room BTO flat prices in non-mature estates and that of their resale counterparts, it’s apparent that BTO flats are much more affordable.
The main downside to getting a BTO flat is the long waiting time. The best-case scenario is if you get the flat on your first try, and you only need to wait for three to four years for the flats to be completed. If you need to ballot multiple times, it could be longer.
So, if you don’t mind waiting for a BTO project to be completed, a 2-room Flexi for singles might be a good option for you. But in terms of when you can collect the keys, resale flats win when comparing BTO vs resale flats.
2. HDB 2-room Flat for Singles or 3-Room HDB Resale Flat
Maybe you’re done comparing BTO vs resale flats as waiting years for a new home is out of the question. Then your next consideration would be either an HDB 2-room flat for singles or a 3-room HDB resale flat.
Meanwhile, the situation is vastly different when it comes to resale flats. Singles are allowed to choose from units with any number of rooms, including larger 5-room flats and executive apartments. When comparing BTO vs resale flats, this is another advantage resale flats have over BTO flats. However, due to affordability concerns, many singles often opt for 2-room or 3-room resale flats.
Here’s a comparison of HDB 2-room flat for singles and 3-room resale flat prices across the estates in Singapore, according to HDB resale transactions in the past six months. The data is accurate as of 8 August 2024.
2-room vs 3-room Resale Flat Prices (as of August 2024)
Towns | Price range for 2-room resale flats | Price range for 3-room resale flats |
Ang Mo Kio | $288,000 to $328,000 | $333,000 to $780,000 |
Bedok | $272,000 to $370,000 | $308,000 to $663,000 |
Bishan | – | $325,000 to $560,000 |
Bukit Batok | $303,000 to $405,000 | $330,000 to $583,888 |
Bukit Merah | $250,000 to $523,000 | $275,000 to $818,000 |
Bukit Panjang | $313,000 to $386,000 | $360,000 to $505,000 |
Bukit Timah | – | $445,000 to $535,000 |
Central | $288,000 to $388,000 | $360,000 to $625,000 |
Choa Chu Kang | $303,000 to $320,000 | $350,000 to $486,000 |
Clementi | $422,000 to $475,000 | $318,000 to $820,000 |
Geylang | $246,000 to $325,000 | $270,000 to $775,000 |
Hougang | $305,000 to $329,000 | $290,000 to $580,000 |
Jurong East | $313,000 to $338,000 | $290,000 to $530,000 |
Jurong West | $255,000 to $390,000 | $275,000 to $552,000 |
Kallang/Whampoa | $317,000 to $338,888 | $250,000 to $1,568,000 |
Marine Parade | – | $360,000 to $615,000 |
Pasir Ris | $388,000 to $430,000 | $520,000 to $639,000 |
Punggol | $290,000 to $390,000 | $435,000 to $560,000 |
Queenstown | $275,000 to $525,000 | $300,000 to $765,000 |
Sembawang | $310,000 to $418,000 | $418,000 to $515,000 |
Sengkang | $318,000 to $390,000 | $418,000 to $570,000 |
Serangoon | $286,000 | $300,000 to $530,000 |
Tampines | $350,000 to $388,000 | $385,000 to $620,000 |
Toa Payoh | $240,000 to $305,000 | $300,800 to $808,000 |
Woodlands | $285,000 to $374,888 | $277,000 to $490,000 |
Yishun | $293,000 to $365,000 | $345,000 to $570,000 |
Note: The empty fields mean that there were no transactions, and no data was published.
Let us first say this – this is not an apple-to-apple comparison because an HDB 2-room flat for singles and a 3-room HDB flat are different altogether. However, from the above, we can spot some trends.
Unsurprisingly, since 3-room flats offer more space, they tend to cost more than an HDB 2-room flat for singles. But in some rare cases, 2-room flats could even be more expensive than 3-room flats. Usually, this is because the remaining lease on the flat is likely to have affected the price of the property. Typically, the newer the flat, the higher the price.
If you really want to know which gives you more value for the price, you may want to calculate the price per sqm. According to HDB, 2-room flats are either 36 or 45 sqm, and 3-room flats are 60 to 65 sqm. This means that an HDB 2-room flat for singles is about 31% to 45% smaller than a 3-room flat, suggesting that generally, 3-room flats may be more value for money.
If you’re thinking of investment potential, you may want to steer clear of the older flats as their value may depreciate with the decaying lease. That said, for some less popular estates, the remaining lease may not make such a big difference.
3-room flats may also be more popular as they are spacious enough for not just singles, but couples and small families too, widening your network of buyers. You may also want to consider city fringe or central area locations where buyers may be more open to compromising on space for a convenient location.
CPF Housing Grants for 2-Room BTO vs Resale Flat
There are several grants available to single occupants when it comes to purchasing HDB flats, but the grants you can tap into will depend on the type of flat you purchase. For instance, while only the Enhanced CPF Housing Grant (EHG) is applicable for a BTO flat, singles looking to purchase resale flats are eligible for an additional CPF Housing Grant for Resale Flats (Singles) and Proximity Housing Grant.
CPF Housing Grants for Singles
Type of grant | BTO flat | Resale flat | Eligibility conditions |
Enhanced CPF Housing Grant (Singles) | Up to $40,000 | Up to $40,000 | $4,500 income ceiling |
CPF Housing Grant for Resale Flats (Singles) | – | $40,000 for the purchase of a 2- to 4-room resale flat or $25,000 for a 5-room resale flat | $7,000 income ceiling |
Proximity Housing Grant (Singles) | – | Up to $15,000 or $10,000 | Must live with parents or within 4km of parent’s place |
Let’s look at how that plays out in this sample scenario. For the following comparison, we assume the buyer will live alone but is near their parents, has a monthly income of $3,500, and qualifies for the maximum 80% Loan-to-Value (LTV) ratio on HDB loans (note that from 20 August 2024, the LTV ratio is 75%).
Mortgage and interest rates are calculated using the PropertyGuru Mortgage Calculator and the HDB Payment Plan Calculator.
Factors | 2-room BTO flat | 2-room resale flat | 3-room resale flat |
Selling price | $150,000 | $300,000 | $400,000 |
Downpayment (20%) | $30,000 | $60,000 | $80,000 |
Total CPF Grants | $12,500 (EHG only) | $62,500 (EHG, CPF Housing Grant for Resale Flat, and Proximity Housing Grant) | $62,500 (EHG, CPF Housing Grant for Resale Flat, and Proximity Housing Grant) |
HDB Loan Amount, less grants | $120,000 – $12,500 = $107,500 | $240,000 – $52,500 = $187,500 | $320,000 – $52,500 = $267,500 |
Mortgage (2.6% p.a., 25 years) | $107,502 (principal) +$38,810 (interest) = $146,312 | $187,500 (principal) +$67,691 (interest) = $255,192 | $267,500 (principal) +$96,570 (interest) = $364,071 |
Monthly mortgage repayment | $488 | $851 | $1,214 |
Total paid | $176,312 | $315,192 | $444,071 |
Note: In this example, we did the calculations for an HDB loan for the full 25 years for simplicity, assuming no change in the interest rate. However, the actual cost may differ depending on how you manage your home loan in the long run.
As seen, the resale HDB 2-room flat for singles seems to find a good balance between having a low selling price and being eligible for more grants. 3-room flats are also eligible for the same grants as resale HDB 2-room flats for singles, but due to the significantly higher price tag, the final cost is more than double what a 2-room BTO flat would cost.
Do HDB 2-room Flat for Singles Make the Most Financial Sense?
If You Plan on Remaining Single
Pragmatically speaking, an HDB 2-room flat for singles is most practical for singles living alone. Not only are they more affordable compared to their 4-room and above counterparts, but also the upkeep and maintenance of a smaller apartment are also easier.
Bearing in mind that single buyers will need to shoulder the costs alone if the total square metres is not the biggest deal-breaker, a smaller unit makes for a more financially accessible purchase.
From an affordability point of view, BTO flats are clearly an economical option. The 2-room BTO flat prices stated above exclude any grants, and even then, resale flat prices are double or twice that. This means that these make potentially great investments too if you intend to eventually sell off your home.
If you have your heart set on a brand new HDB 2-room flat for singles, be prepared for the wait. If you urgently need a home and may need to rent in the interim, do also factor that into your costs. Renting for three or more years will cost you a significant sum, and it may just be more affordable (and not to mention, less hassle) to buy a resale flat.
If You Plan on Living with a Partner Eventually
Singles whose longer-term plans involve getting married and/or living together with their partner may find the smaller 2-room flats too cosy or may prefer a 3-room flat for more storage space.
A mid-career executive planning to move out yet remain close to their parents may find a $300,000 2-room resale flat with all the applicable grants affordable but might find $400,000 for a 3-room resale flat unwieldy and shy away from it altogether. Yet another single may prefer 2-room flats to 3-rooms in general, simply because the upkeep and maintenance could be easier.
Worthy investments thus depend on your preferences, as well as your financial situation. Whatever you choose, purchasing a property within your financial means is always a more prudent choice. For personalised recommendations and expert mortgage advice, reach out to Property Finance mortgage experts.
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