Send Help: BTO versus Resale Showdown

One of Singapore’s most popular questions

Singapore has just launched its latest BTO sites for applications for the month of February. When it comes to buying a home in Singapore, there are two main options: Build-To-Order (BTO) flats or resale flats. While both offer advantages and disadvantages, which one is better depends on your unique needs and circumstances. In this article, we'll explore the differences between BTO and resale flats in Singapore to send help to young couples and (not as young 35 and above) singles.

What are BTO Flats?

BTO flats are new flats built by the Housing and Development Board (HDB) that are sold directly to eligible applicants through regular sales launches. They are located in new HDB estates and are typically sold at a lower price than resale flats. BTO flats are also eligible for various housing grants, making them an attractive option for first-time homebuyers.

Advantages of BTO Flats

One of the biggest advantages of BTO flats is that they are generally more affordable than resale flats. This is because the government heavily subsidizes the cost of building BTO flats, allowing them to be sold at a lower price. BTO flats are also brand new, which means that they come with a warranty and are less likely to have maintenance issues compared to resale flats.

Another advantage of BTO flats is that they are eligible for various housing grants. For example, first-time homebuyers may be eligible for the Enhanced Housing Grant (EHG), which provides up to $80,000 in grants. Other grants, such as the Family Grant and Proximity Housing Grant, are also available for eligible buyers.

Disadvantages of BTO Flats

One of the main disadvantages of BTO flats is that they are typically located in new estates that may not have as many amenities as established estates. This means that residents may have to travel further for essential services such as healthcare, education, and entertainment. Additionally, the waiting time for BTO flats can be several years, which may not be suitable for those who need a home immediately.

There is also the infamous waiting time when it comes to BTO construction. The Housing and Development Board (HDB) estimates that it takes approximately three to four years from the time the land is acquired until the BTO flats are ready for occupancy but we all know that nowdays it takes way longer than that with about 5 years average.

There are several reasons why it takes this long to build a BTO flat in Singapore. Firstly, there is a rigorous planning and design process involved in developing a new housing estate. This includes conducting site surveys, designing the flats and amenities, obtaining the necessary approvals from relevant authorities, and conducting environmental impact assessments.

Once the planning and design process is complete, construction can begin. The construction process is a complex undertaking that involves multiple phases, such as site preparation, foundation work, structural work, mechanical and electrical installations, and finishing work. Each phase requires skilled workers, materials, and equipment, and delays can occur due to unforeseen circumstances such as inclement weather or supply chain disruptions.

Another factor that can impact the construction timeline is the COVID-19 pandemic. The pandemic has caused disruptions to global supply chains and restricted the movement of workers, which can lead to delays in the delivery of construction materials and shortages of construction workers.

What are Resale Flats?

Resale flats, on the other hand, are flats that have been previously owned by someone else. They can be purchased from the open market or through the HDB resale portal. Unlike BTO flats, resale flats are located in established estates with a wide range of amenities, such as schools, hospitals, and shopping centers.

Advantages of Resale Flats

One of the main advantages of resale flats is their location. As they are located in established estates, they are often closer to amenities such as schools, hospitals, and public transport. This can be especially important for families with children or elderly individuals who may have mobility issues.

Another advantage of resale flats is that they are available for immediate occupancy. Unlike BTO flats, which may have a waiting period of several years, resale flats can be purchased and occupied almost immediately. This can be beneficial for individuals who need a home urgently.

Disadvantages of Resale Flats

One of the main disadvantages of resale flats is that they are generally more expensive than BTO flats. This is because they are sold at market prices, which can be affected by factors such as location, age, and condition of the flat. Additionally, resale flats may have maintenance issues that the previous owners did not address, which can result in additional costs for the new owner.

Which is Better: BTO or Resale?

Ultimately, the decision between BTO and resale flats comes down to personal preferences and circumstances. If you are a first-time homebuyer with a limited budget, BTO flats may be a more affordable option. If you need a home urgently, a resale flat may be a better option, but if you are willing to wait and prefer a brand new home, a BTO flat may be more suitable.

It's important to do your research and consult with a property agent or financial advisor before making a decision. With careful planning and consideration, you can find the home that best suits your needs. Other factors to consider include your budget, location preferences, and willingness to undertake renovation work. It's essential to do your research and speak to a property agent or financial advisor before making a decision.

Conclusion

In conclusion, both BTO and resale flats have their advantages and disadvantages, and the decision to opt for one over the other depends on various factors. It's crucial to weigh the pros and cons of each option before making a decision, and to seek professional advice if necessary. By doing so, you can make an informed decision and choose a home that best suits your needs and preferences.

VICTORIA NG | Contributing Writer

Victoria, a.k.a Vicky is a creative freelancer who hails from Singapore, she loves to ‘vibe’ on the internet and pretty much prefers cats over humans. She has a fondness for things that carry an air of nostalgia and enjoys cafe hopping on weekends. Her current struggle is trying to spend less time on Tiktok, she can hear the “ting ting ting dang ting” song in her ears. She hopes to own a corgi someday.