One of the biggest indicators of adulthood is when you purchase your flat.
That is, apart from getting married or having your first kid.
With our homes being one of the biggest purchases in our lives, we would all like to make the best choice.
BTO flats are usually highly sought after as a first home.
The notion of building a house together from scratch…
And the general idea of it being the most affordable option for a regular salaryman…
We always hear how resale flats could cost a lot more than BTO flats.
But is this always true?
We decided to check it out based on the locations of recent HDB BTO launches.
Here, we looked at the flat prices for the estates of HDB BTO launches in November 2019 and February 2020.
TL;DR: Are Resale Flats ALWAYS More Expensive Than BTO Flats?
Disclaimer: We acknowledge that there are many factors that would affect a flat’s valuation – its exact location, floor level, size, orientation, remaining lease, etc.
These varying factors also mean that there is no apple-to-apple comparison of these flats.
This article is here to provide a broad idea and serve as an estimate. 🙂
Resale flat prices quoted here are estimates based on estates close to these BTO launches, with similar surrounding amenities such as schools, kindergartens, hawker centres, community clubs and MRT/LRT stations.
Also, do note that resale flats are usually more spacious, approximately 10 sqm bigger than new BTO flats (depending on the various sizes within each flat type too).
| Town | Estate Type | Flat Type | BTO Selling Price (Excluding Grants) | Resale Selling Price (Excluding Grants) |
|---|---|---|---|---|
| Nov 2019 Sales Launch | ||||
| Tengah | Non-Mature | 2-Room Flexi | $110,000 - $167,000 | - |
| 3-Room | $208,000 - $256,000 | $240,800 - $300,000 | ||
| 4-Room | $302,000 - $381,000 | $325,000 - $465,000 | ||
| 5-Room | $409,000 - $510,000 | $515,000 - $628,000 | ||
| 3-Gen | $442,000 - $504,000 | - | ||
| Ang Mo Kio | Mature | 2-Room Flexi | $212,000 - $253,000 | $195,000 - $228,000 |
| 3-Room | $332,000 - $391,000 | $235,000 - $385,000 | ||
| 4-Room | $451,000 - $563,000 | $300,000 - $498,000 | ||
| Tampines | Mature | 2-Room Flexi | $193,000 - $216,000 | $273,000 - $278,000 |
| 3-Room | $281,000 - $328,000 | $270,000 - $320,000 | ||
| 4-Room | $394,000 - $480,000 | $360,000 - $470,000 | ||
| 5-Room | $508,000 - $606,000 | $480,000 - $680,000 | ||
| Feb 2020 Sales Launch | ||||
| Sembawang | Non-Mature | 2-Room Flexi | $89,000 - $141,000 | $230,000 - $258,800 (Sembawang) |
| 3-Room | $177,000 - $210,000 | $278,000 - $330,000 (Sembawang) $240,000 - $331,300 (Yishun) |
||
| 4-Room | $272,000 - $320,000 | $302,000 - $425,000 (Sembawang) $300,000 - $420,000 (Yishun) |
||
| 5-Room | $350,000 - $406,000 | $372,000 - $490,000 (Sembawang) $380,000 - $452,000 (Yishun) |
||
| 3-Gen | $355,000 - $411,000 | - | ||
| Toa Payoh | Mature | 2-Room Flexi | $90,000 - $184,000 | $181,000 - $210,000 |
| 3-Room | $351,000 - $446,000 | $180,000 - $360,000 | ||
| 4-Room | $395,000 - $666,000 | $405,000 - $645,000 | ||
Tengah
Tengah is the new kid on the block, the newest developmental area in the west.
There are grand plans to develop Tengah into Singapore’s first smart and sustainable town, with green features and smart technologies.
As such, the prices though still relatively affordable, are not the cheapest.
For its comparison, we looked at the flats within close proximity to Bukit Batok MRT, an area that is relatively close to Tengah.
This is to compare the Tengah plots which would be built close to the upcoming new MRT stations.
| Flat Type | BTO Price (Tengah) | Resale Price (Bukit Batok) |
| 2-Room Flexi | $110,000 – $167,000 | – (Insufficient data) |
| 3-Room | $208,000 – $256,000 | $240,800 – $300,000 |
| 4-Room | $302,000 – $381,000 | $325,000 – $465,000 |
| 5-Room | $409,000 – $510,000 | $515,000 – $628,000 |
| 3Gen | $442,000 – $504,000 | – |
As we can see from above, Tengah is priced rather affordably as compared to Bukit Batok.
This is probably due to the number of years Tengah would still need to take before becoming a fully integrated hub, even after the completion of its first batches of BTO flats.
Ang Mo Kio
For the Ang Mo Kio launch (Yio Chu Kang Beacon), the plot is relatively close to Yio Chu Kang MRT, with a couple of amenities nearby too.
We looked into the district’s resale prices, at plots right beside this launch (Ang Mo Kio Ave 4 to 6).
| Flat Type | BTO Price | Resale Price |
| 2-Room Flexi | $170,000 – $253,000 | $195,000 – $228,000 |
| 3-Room | $332,000 – $391,000 | $235,000 – $385,000 |
| 4-Room | $451,000 – $563,000 | $300,000 – $498,000 |
Interestingly, the prices are rather comparable.
This might be due to various factors, such as housing lease and also the location of the flats, with Yio Chu Kang Beacon being relatively close to the MRT station.
Tampines
Tampines GreenSpring is a stone’s throw away from Tampines MRT Station.
To compare this BTO launch, we’ve looked into the flats which are near this plot of land.
| Flat Type | BTO Price | Resale Price |
| 2-Room Flexi | $145,000 – $216,000 | $273,000 – $278,000 (Prices according to Tampines district, no transaction results for units close to MRT) |
| 3-Room | $281,000 – $328,000 | $270,000 – $320,000 |
| 4-Room | $394,000 – $480,000 | $360,000 – $470,000 |
| 5-Room | $508,000 – $606,000 | $480,000 – $680,000 |
As we can see, the resale prices aren’t necessarily higher for similar areas.
This is also due to the fact that Tampines GreenSpring is situated at a wonderful location – still a shorter walking distance to the major Tampines shopping malls as compared to the rest of the blocks – which allows it to command a higher premium.
Sembawang
The Sembawang Vista is a launch situated right beside the new MRT Station, Canberra.
This district is rather new, with the surrounding properties also being recent BTO projects.
Therefore, we looked into the resale prices of flats close to its neighbours, Sembawang and Yishun MRT stations.
| Flat Type | BTO Price | Resale Price (Sembawang) | Resale Price (Yishun) |
| 2-Room Flexi | $89,000 – $141,000 | $230,000 – $258,800 | – |
| 3-Room | $177,000 – $210,000 | $278,000 – $330,000 | $240,000 – $331,300 |
| 4-Room | $272,000 – $320,000 | $302,000 – $425,000 | $300,000 – $420,000 |
| 5-Room | $350,000 – $406,000 | $372,000 – $490,000 | $380,000 – $452,000 |
| 3-Gen | $355,000 – $411,000 | – | – |
Given that the Canberra district is still new, with amenities still in the midst of sprouting up (Canberra Plaza in its works), its prices are generally significantly lower as compared to its counterparts.
Toa Payoh
There were two BTO launches that were introduced during the previous launches – Kim Keat Ripples & Toa Payoh Ridge.
| Flat Type | BTO Price | Resale Price |
| 2-Room Flexi | $90,000 – $184,000 | $181,000 – $210,000 |
| 3-Room | $351,000 – $446,000 | $180,000 – $360,000 |
| 4-Room | $395,000 – $666,000 | $405,000 – $645,000 |
With these plots strategically located at prime locations (especially Toa Payoh Ridge, sandwiched between two MRT stations), it is no surprise that their prices are comparable to that of resale flats which are situated nearby these developments.
Conclusion
Now that we’ve compared between both housing types of different districts, it is safe to say that resale flats aren’t ALWAYS more expensive than BTO flats.
The government is also providing the CPF Family Grant of $50,000 (if household incomes do not exceed $14,000) to cushion any potential price differences for resale flats.
Besides that, buyers of resale flats get to enjoy a further $30,000 under Proximity Housing Grant (PHG) if they live with or near their parents.
That is quite a bit of savings!
Also, since the Enhanced CPF Housing Grant has been introduced, couples get to enjoy higher housing grants, regardless of estate type (mature or non-mature estate).
This makes mature estates – a common estate type for resale flats – more accessible for home buyers.
With these grants and also the increase in income ceilings, it is also safe to say that there are steps to ensure that HDB housing is kept affordable and accessible.
If you’re still deciding on which type of HDB property to own, or have any burning questions regarding properties (be it BTO or resale), you might have your concerns already answered by the SeedlyCommunity! 😉
