Should you buy a HDB BTO or Resale flat?

By Jermaine Koh

If you’ve only got a minute:

• BTO flats typically feature modern designs with lower initial maintenance costs but require a waiting period. On the other hand, resale flats provide immediate availability and greater location flexibility but may involve higher renovation costs and a declining lease.
• Important factors to consider when choosing between BTO and resale flats include eligibility criteria, pricing, available grants and subsidies, housing conditions, renovation needs, size and space, location options and restrictions on resale.
• You should assess your personal needs, financial situation, and long-term goals to make informed choices that best suit your circumstances when choosing between BTO and resale flats.

With rising property prices, HDB flats are viewed as a more practical option than private residential properties due to affordability concerns. As a result, prospective buyers often face a challenging decision when choosing between HDB Build-to-Order (BTO) flats and resale flats.

Both options present unique benefits and drawbacks that cater to various lifestyles and financial situations. This article aims to guide you through the essential aspects of both options to help you make an informed decision.

HDB BTO flats

BTO flats are new public housing units offered by HDB, characterised by their affordability and modern amenities.

In Oct 2024, HDB introduced a new set of flats in 9 estates, accounting for more than 40% of the total new HDB supply for the year. This increase in availability was largely due to a high number of applications, influenced by appealing project features and the availability of 2,000 flats with shorter waiting times.

Around 5,000 BTO flats are set to be launched in Feb 2025 in areas including Kallang/Whampoa and Queenstown.

HDB Resale flats

Resale flats are pre-owned HDB units available for immediate occupancy, making them ideal for families needing quick accommodation or those upgrading from smaller units. Unlike BTOs, resale flats do not involve a waiting period and you can move in shortly after purchase.

Key considerations

When choosing between HDB BTO and resale flats, it's important to consider several key factors that can greatly impact your buying decision.

1. Eligibility criteria
Only Singapore citizens (SCs) and permanent residents (PRs), aged 21 and above, can apply for HDB flats. This requirement ensures that public housing is primarily allocated to those with a long-term commitment to living in Singapore.

There are specific income limits set by HDB to ensure that subsidies are directed toward lower to middle income families. For instance, as of 2023, the income ceiling for BTO flats is S$14,000 for families and S$7,000 for singles applying under the Single Singapore Citizen scheme.

There is no income ceiling for resale flats.

When applying for BTO flats, you must not have owned or sold any private properties, locally or overseas, in the 30 months before your application.

If you're buying a resale unit, you’ll need to dispose of any previously owned private properties within 15 months of the purchase. Seniors aged 55 and above who are transitioning from private properties to a resale flat with 4 rooms or fewer are exempted from the wait-out period.

2. Price and affordability
Generally, BTO flats are more affordable than resale options. For example, the average price of a new 4-room BTO flat can range from S$300,000 to S$500,000, while resale flats closer to the city centre can exceed S$1 million.

Here’s a price comparison of new flats and resale units nearby based on the October 2025 BTO launch:

Outside Core Region (OCR)

Core Central Region (CCR)

3. Grants and subsidies
There are 2 types of grants available for BTO, the Enhanced CPF Housing Grant (EHG) for first-time buyers and the Step-Up CPF Housing Grant for second-time applicants.

To assess your eligibility for an HDB flat, log in to the HDB Flat Portal using your Singpass to apply for the HDB Housing Financial Eligibility (HFE) letter. After your application is processed, you will receive details about your eligibility for a flat, the loan amount you qualify for, any CPF housing grants (and grant amounts) and the resale levy amount if you are a second-time buyer.

Note: For BTO flats, you must have a valid HFE letter when you apply for a flat from HDB. As for resale flat, the HFE letter must be obtained before getting an Option to Purchase (OTP) from the seller.

Read more: The housing grants available in Singapore

4. Housing condition
BTO flats comes with a fresh 99-year lease and they typically feature modern designs and newer fixtures, which can lead to lower maintenance costs in the initial years. The absence of previous wear and tear means a fresh living environment without immediate renovation needs.

In contrast, resale flats are sold with the remaining lease period (less than 99 years) and they may have outdated features.

5. Renovation considerations
Generally, BTO flats require minimal renovations apart from personalising spaces.

The introduction of “white flats” in the October 2024 BTO launch, an open-concept layout without partition walls, grants greater flexibility in designing your living spaces according to your preferences.

While these flats offer a blank canvas for creativity, keep in mind that drastic changes might jeopardise your resale chances, particularly if the future buyer prefers a more traditional layout.

If you buy an older flat, you might face significant renovation needs (especially if the house is not renovated to your liking), such as wall demolition/hacking, plumbing repairs and/or electrical upgrades, all of which can add to your expenses.

6. Size and space
BTO flats typically range from 2-room units (approximately 45 sqm) to larger 5-room units (around 110 sqm). In contrast, resale flats can vary greatly in size, particularly older flats (shorter lease remaining) with larger living spaces and more rooms.

Additionally, factors like natural light, ventilation, views and neighbours are often better assessed in completed resale units than in unbuilt BTO projects. The "blind" buying aspect (BTO) can sometimes be a drawback as it’s hard to envision how these features will impact your living experience.

7. Location options
BTO units are built in predetermined locations set by HDB, which limits flexibility in selecting where you want to live.

While many BTO projects come with improved amenities and facilities, they may still be situated further away from essential services such as public transport, schools and shopping centres. This can lead to inconvenience, especially for families or individuals who rely on public transport for daily commute.HDB also offers BTO Prime and Plus flats, which are located in more accessible areas but come at slightly higher prices compared to standard BTO flats. These options provide enhanced accessibility and amenities, making them appealing for those prioritising location.

Purchasing a resale flat gives you the freedom to choose a location that best suits your lifestyle and preferences, allowing selection based on proximity to work, schools, recreational areas and public transport options.

8. Restriction on reselling
After you receive your keys (BTO), you must adhere to a Minimum Occupation Period (MOP) of 5 years before you can sell the flat on the open market. Keep in mind that the MOP is on top of the waiting time required for the flat to be constructed, which can take up to several years.

For HDB Plus and Prime flats, there are additional restrictions - a 10-year MOP and you can’t rent out your entire unit at any time.

If you’re looking for a quick return on investment or plan to move shortly after purchase, a BTO may not be the best option. More importantly, do consider whether you see this flat as your forever home or if you plan for any home upgrades in future.

9. Unit selection
You will need to participate in a balloting system for BTO units. This means you may not have immediate access to your preferred unit, as availability is determined by luck and demand.

Once you secure a unit through the ballot, you will have the opportunity to select from the available options, but your choices may be limited based on the projects offered during that sales exercise.

In contrast, purchasing a resale flat gives you full autonomy over your selection and you’d be able to negotiate purchases directly without waiting for construction timelines or balloting outcomes.

In a nutshell

Pros and cons

Choosing between HDB BTO and resale flats involves careful consideration of various factors such as eligibility criteria, pricing structures, housing conditions, renovation needs, space requirements, location preferences, waiting times and unit selection processes.

By thoroughly evaluating these aspects against personal needs and financial capabilities, you’d be able to make informed decisions that align with your long-term goals.

Start Planning Now

Check out DBS Home Marketplace to work out the sums and find a home that meets your budget and preferences. The best part – it cuts out the guesswork.

Start Planning

Alternatively, prepare yourself with an In-Principle Approval (IPA), so you have certainty on how much you could borrow for your home, allowing you to know your budget accurately.

Apply In-Principle Approval

Disclaimers and Important Notice
This article is meant for information only and should not be relied upon as financial advice. Before making any decision to buy, sell or hold any investment or insurance product, you should seek advice from a financial adviser regarding its suitability.