For many Singaporeans, owning a home starts with a big decision:
Should you wait for a Build-To-Order (BTO) flat or buy a resale HDB flat?
With each BTO launch drawing thousands of hopeful applicants, and resale prices climbing in many areas, it’s important to weigh your options carefully. Let’s break it down.
So, What is a BTO Flat?
A BTO (Build-To-Order) flat is a type of public housing in Singapore offered by the Housing & Development Board (HDB). These flats are not built until there is confirmed demand through a balloting process, meaning buyers apply first and then wait around 3 to 5 years for the flat to be constructed. BTO flats are popular among first-time homebuyers because they are more affordable than resale flats, come with a full 99-year lease, and are brand new. However, the trade-off is the waiting time and limited locations, as many BTO projects are in newer or developing towns.
Now, Why Choose a BTO?
1. Affordability
BTOs are heavily subsidised, making them significantly cheaper than resale flats. Prices can be 20–30% lower depending on location.
In Tengah or Woodlands, a 4-room BTO might start at ~$350,000. The same in the resale market could go above $500,000+ with renovation needs.
2. Brand New Condition
You’re the first owner — everything is fresh, and wear & tear is non-existent. No hacking, no funky tiles, no surprises in the toilet.
3. Minimum Renovation
Newer layouts, updated electrical systems, and clean finishes mean less renovation, which can save you tens of thousands.
4. Longer Lease
You get the full 99-year lease, which protects your long-term asset value and resale potential in future.
❌ But What Are the Downsides of BTOs?
1. Long Waiting Time
The average BTO takes 3 to 5 years to complete. For couples eager to move in soon, this is a major pain point.
2. Location is a Gamble
Many BTOs are in developing towns (like Tengah or Punggol in early days). While these areas may bloom later, you’ll need to wait for amenities, MRTs, and malls to catch up.
3. Uncertainty in Application
Demand is high. Popular BTOs are often 6 to 10 times oversubscribed, meaning you may apply and still not get a queue number — adding months (or years) to your timeline.
So, should you consider a Resale instead?
You should consider a resale HDB flat if you need a home quickly, prefer living in a mature estate, or want more space and flexibility in location. Unlike BTO flats, which can take 3 to 5 years to be ready, resale flats are move-in ready—making them ideal for couples with urgent timelines or families looking to upsize. Resale flats also offer larger layouts, especially in older estates, and let you choose units near MRTs, schools, or parents’ homes. However, they tend to cost more upfront and may come with shorter leases and renovation needs. Still, for many buyers, the convenience and location benefits outweigh the higher price.
1. Immediate Move-In
Resale flats are ready. This is ideal for:
- Families needing space fast
- Couples with wedding timelines
- Upgraders from smaller flats
2. Wider Location Choices
Want to live near parents, in a mature estate, or close to an MRT? Resale gives you more flexibility to pick the right spot.
3. Larger Space
Older flats, especially in mature estates, are more spacious than newer BTOs. Great if you need an extra room or love hosting family.
❌ However, here comes the downsides of Resale Flats
1. Higher Prices
Resale flats often command higher prices compared to new units due to several key factors. Firstly, resale flats are typically located in mature estates with established amenities such as schools, public transport, markets, and recreational facilities, making them highly desirable. Secondly, they offer immediate availability, allowing buyers to move in without waiting for construction to complete, which is particularly attractive for those with urgent housing needs. Additionally, some resale flats may have been renovated or upgraded by previous owners, adding to their appeal and justifying a premium. Lastly, as government restrictions on new flat purchases can be stringent, resale flats offer greater flexibility and access to a wider range of buyers, including those who may not qualify for new units, further driving up demand and prices.
You’ll also likely pay more upfront — especially with Cash Over Valuation (COV) coming back in hot areas.
2. Shorter Lease
One significant downside of purchasing a resale flat with a shorter lease is the limited tenure remaining on the property, which can greatly impact both its value and appeal. As the lease shortens, the flat typically depreciates faster, making it a less attractive investment. Potential buyers may be hesitant due to restrictions on loan eligibility and higher financing costs, as banks are often reluctant to grant full loans for properties with less than 60 years of lease remaining. Additionally, owners may face difficulties when trying to sell the unit in the future, and they may not be eligible for certain government grants or schemes aimed at newer or longer-lease properties. These factors collectively reduce the flat’s marketability and financial viability in the long run.
A 30-year-old resale flat only has 69 years left on its lease, which can affect:
- Loan
- CPF usage
- Future resale value
3. Renovation Costs
Another key downside of buying a resale HDB flat compared to a Build-To-Order (BTO) flat is the potentially higher renovation costs. Resale flats often come with dated interiors, worn-out fittings, and layouts that may not suit the buyer’s preferences, necessitating major renovations. Buyers might need to spend significantly on hacking old tiles, replacing electrical wiring, plumbing works, and upgrading fixtures to meet modern standards. In contrast, BTO flats are brand new and typically come with optional renovation packages, allowing homeowners to move in with minimal additional work. As a result, the total upfront cost of a resale flat can be higher when factoring in extensive renovation expenses.
Older homes often need extensive renovations — rewiring, plumbing, flooring — which adds $20k–$60k easily.
📈 What Do the Trends Say?
- BTO Launches are getting more competitive, especially for mature estates like Kallang/Whampoa or Queenstown.
- Resale prices hit record highs in 2023, but the pace of growth is slowing in 2024 due to cooling measures.
- HDB is ramping up supply — more than 100,000 BTOs planned between 2021–2025. This could reduce waiting times slightly.
💬 So the question is… Should You Wait or Buy Resale?
The decision of whether to wait for a BTO flat or buy a resale flat ultimately depends on your personal priorities, timeline, and financial situation. But here’s a quick guide:
| Not in a rush, tight budget, first home | ✅ BTO |
| Need to move in within 1 year | ✅ Resale |
| Want to live near parents or kids’ school | ✅ Resale |
| Okay to wait for better price & newer home | ✅ BTO |
| Prefer mature estates & more space | ✅ Resale |
🔑 Final Thoughts
There’s no one-size-fits-all answer. It really comes down to your timeline, budget, and lifestyle needs.
Deciding between waiting for a BTO flat or buying a resale HDB flat is a major financial and lifestyle choice that depends on your unique needs and circumstances. If you’re at a stage in life where immediate housing is a priority—perhaps due to marriage, family needs, or wanting to move out of your current living arrangement—a resale flat offers the advantage of quicker move-in and a wider selection of locations, particularly in mature estates with well-developed amenities. However, this convenience often comes at a higher cost, not just in terms of purchase price but also in renovation and potential maintenance expenses. The shorter remaining lease of older flats can also be a concern for long-term asset value.
On the other hand, waiting for a BTO flat can be a wise choice for those who are not in a rush and are looking for a cost-effective, brand-new home. BTO flats are heavily subsidized, making them more affordable, and they come with a full 99-year lease, which gives better value over the long run. While the waiting time can be a drawback, especially in high-demand areas, the modern layout and minimal renovation required often appeal to younger buyers and first-time homeowners.
Ultimately, it’s a balance between time, cost, and location. If you value immediacy and choice, resale may be the way to go. But if you can afford to wait and prefer starting fresh with a brand-new unit, a BTO flat is a sound long-term investment. Carefully evaluate your lifestyle needs, financial readiness, and long-term goals before making the decision. There is no one-size-fits-all answer, but with careful planning, either option can lead to a fulfilling homeownership journey.
In summary, If you can wait and want to save, BTO is a smart long-term choice. But if your priority is space, location, or immediate housing, resale might be worth the premium.
Still need help comparing your options? You’re not alone—and we’re here to help. Speak to one of our experienced property consultants for a no-obligation consultation. Whether you’re just starting your journey or weighing your final decision, we’ll walk you through your options clearly and objectively, tailored to your needs and budget. It’s not about making a decision on the spot—it’s simply about understanding what works best for you. Book an appointment today and get the clarity you need to move forward with confidence.
