First Time Buying a Home in Singapore? Think of it Like a Series of Episodes
For most Singaporeans, the golden rule on buying their first nest has been pretty straightforward:
- Step 1: Grab a BTO (Built‑To‑Order) flat – the government’s way of giving you a decent starter home.
- Step 2: Live in it for five solid years. That’s the minimum occupation period (MOP). Think of it like a contract that keeps your landlord happy.
- Step 3: Once the MOP is done, it’s time to level up. You can either:
- Upgrade to a condo where the view looks like the sky, or
- Move to a bigger or more central HDB unit on the resale market; the market’s your playground.
That plan seemed brilliant – until Covid‑19 decided it needed a plot twist.
BTO vs resale: Is BTO still the go-to choice in 2021?
Why Resale Is Gaining the Upper Hand over BTOs — Kinda Like a Sports Match in the Pandemic Era
It’s a classic showdown that’s been raging since the first second‑hand HDB flat hit the market. BTOs once wore the crown of “first‑pick, low‑price, and all the perks,” but that glory is fading, and a coronavirus‑dragged megaphone has amplified resale’s roar.
How BTO’s Edge Took a Knockout Blow
BTOs, the “Build‑To‑Order” play, were the go‑to route for newcomers and families eyeing a cheaper entry. The charm? A lower price tag, a guaranteed new‑build aesthetic, and the bliss of a flat that hadn’t been traded before.
But sooner or later, a few things slid into the mix:
- Price Convergence: As the market matured, resale prices started catching up, leaving BTOs with a smaller discount.
- Supply Crunch: The land and planning pipeline can’t churn out flats as fast as demand demands, making even a BTO waiting list feel like a long marathon.
- Risk Appetite Shifts: Some buyers discovered that a resale flat can mean a better location, mature community facilities, or even an already‑flawless build.
The Covid Effect: Resales Win the Re‑Score
When lockdowns hit, two key factors tightened the market and nudged buyers toward resale:
- Immediate Availability: A BTO means a waiting list of a year or more; a resale flat can hand you the keys in days or weeks.
- Investment Hedge: With fluctuating property prices post‑pandemic, some folks math’ed that a resale price drop could yield higher upside during the recovery phase.
All that said, the final verdict isn’t a simple “smart to buy resale.” Instead, it’s a nod to the nuanced realities of today’s market—where price, timing, and personal priorities intertwine, and the pandemic has simply reshuffled the deck.
1. Waiting time — can you afford to wait that long?
The Building Race: How COVID‑19 Raced Us to the Finish Line
Back in the day, the HDB was this superhero that tossed out BTO flats in just 3–4 years. In 2018, a few lucky buyers got their homes in a speedy 2½ years after submitting their applications – talk about speed‑fueling the dream!
Then, oh‑snap! COVID‑19 crashed the construction party. Safety drills, social distancing, and a whole new crew of regulations stepped in to keep the virus from crashing the build‑ing.
Result? The time it takes to beard a BTO flat stretches out by one to two years. So, instead of the usual 4–5 years, you’re looking at a five‑year wait with the upcoming Woodlands BTO—a summer 2021 application means a Q2 2026 completion. Irony, right?
For those who can’t live in the “long‑wait” zone, the resale market is the sweet spot.
- Shorter buy‑time: Immediate move‑in vs. waiting for construction
- More flexibility in price and location
- Get a slice of the market while it’s hot
So, whether you’re playing the long game or diving right into resale, the building world is evolving—and it’s showing us that patience pays… but not always the way we expected!
2. Uncertainty on amenities – you don’t know what you might be getting next to your home
Buying a Resale Flat vs. a BTO: What’s the Real Deal?
Ever wondered what your new neighbourhood will feel like before you’re officially “there”? If you’re hopping into a resale flat, you’re already stepping into a well‑grown patch of town. All the big‑name shops, cozy eateries, MRT stops, and schools are already on the map – you even know the street names that pop up on your GPS.
With Resale Flats…
- Mature estates are fully developed.
- Finished amenities: malls, food courts, transit hubs, primary & secondary schools.
- One click on Google Maps shows the exact street layout – no surprises.
In short, you’re buying into a ready‑made community. It’s like buying a house in the suburbs where the street is firmly laid out and everyone knows the bakery down the block.
Switch to BTO and … oh, the uncertainty!
Buying a BTO (Built‑to‑Order) slot can feel a bit like buying a house in a brand new town – all the excitement, but a few mysteries still loom. That’s particularly true if you’re eyeing places like the emerging township of Tengah.
Even with the URA Master Plan, it’s almost impossible to predict which mall will end up across the street or how the local market will look. Would it be a glowing hub of high‑end boutiques or a gritty kiosk area? No one can say for certain until the latest development plans actually unfold.
A Trip Back in Time: Punggol & Sengkang
Take a look at those who applied for homes in Punggol and Sengkang in the early 2000s. By the time the first residents moved in, most of the town’s real anchor points were still a geological distance away.
- Old Compass Point – later renamed Compass One – was the main mall.
- Mini‑town mall Punggol Plaza also steered most of the retail traffic.
- Waterway Point didn’t open until 2016, long after the early BTO launches had already finished.
So the point stands: BTO developers often deliver a ‘to‑be’ vision’, while resale buyers get the ‘now’ reality. That’s why acquisition strategies differ: some buy once the plaza is near the road, others gamble on future growth to enjoy a future near‑shiny town.
3. No viewing opportunity before making the purchase
Getting The Most Out Of Your Future Home
When you’re scouting for a new place to plant yourself, the wind, the sunlight, and the layout are the three big influencers. Think about this like packing for a road trip—skip the mediocre choices and you’ll arrive with the perfect vibes.
Why the West‑Facing Unit is a Red Flag
- Setting Sun Drama: Picture selling the view to the sky every evening. Beautiful, yes, but a double‑exposure to heat and humidity might turn your living room into a sauna.
- No Breeze Option: Without a north or east entrance, that week‑long summer breeze never gets to cross your space. You’ll feel like your tiny apartment is stuck on a stagnant day.
Hidden Layout Hazards
Modern BTO builds usually follow a cookie‑cutter blueprint, because that’s how HDB’s prefab perks get to shine. But look‑as‑you‑feel a unit is on paper are just that—papers.
Resale Units: The Freestyle Advantage
- Plan a multiple‑stop tour before committing. Walk the floor, point to a window, and actually test how the breezes move through.
- Grab the real view on the ground. Actually see if there are parks or sunsets to admire.
In short, you get to live it out before you sign the papers.
BTO Builds: A Guesswork (Almost)
Here the notebook is the limit. You’ll examine the site plan and try to predict wind direction and cozy or cramped layouts—all from a spreadsheet. And your predictions? They’re usually guessing at wind speeds and whether that living room will feel like a lodge.
So, the true verdict only comes when you step into your BTO and actually feel the floor tiles and breath—maybe later.
Score: Resale brilliant rating: 3 | BTO: 0
4. Dependent on luck – you don’t have full autonomy over your choice
Why Top‑Floor & Prime‑Spot Living is the Goal in BTO
Everyone knows that when you’re planning to sell after your MOP, high floors are the crystal‑clear choice. And stacks that sit close to the MRT or shopping malls? Those are the jackpot spots that everyone’s talking about.
Convenience That Packs a Punch
It’s not just about walking to the bus stop in the rain. Those hard‑to‑get units bring convenience and can actually fetch a higher price when you decide to part ways.
Luck Is the Big Deal
- The whole game hinges on your ballot number—if it’s good, you grab the sweet stack. If it’s a bit behind, you might end up stuck on a second‑floor unit far from the fun stuff.
- In the BTO world, you’re rolling the dice, whereas resale buyers can pick the exact unit they want.
So, while resale offers style and choice, BTO is a shuffle of luck that can make or break your future profits.
Score: Resale: 4 | BTO: 0
5. Affordability
Why BTOs Still Reign Supreme for Most Singaporeans
At the heart of the BTO‑vs‑resale debate is the need to keep house‑buying within everyone’s bank‑roll. The pre‑order system that underpins BTOs makes them a lot cheaper than the resale market, no matter what the price tag is.
What Made BTOs Super‑Affordable?
- Previously, BTO pricing was chill, like a weekend brunch. The government later tied prices to the actual market after seeing how pricey resale flats like Pinnacle @ Duxton became.
- Even with today’s market‑pegged rates, BTOs still shave off at least $100,000 to $200,000 compared to resale flats.
New Incentives Trying to Boost Resale Demand
The government tossed two hefty grants into the mix: the Family Grant (up to $50k) and the Proximity Housing Grant (up to $30k). These serve to close the price gap and give buyers more reason to think about resale options.
And if you’re not in the mood for a long wait, buying resale means you won’t have to sit in a queue for months. (See the earlier note about ongoing BTO projects facing up to nine‑month delays.)
Bottom Line: BTO’s Still the Budget Friend
While the new grants help, BTOs remain the go‑to choice for many because of that affordability edge, coupled with the ability to build something that’s truly yours.
BTO still caters to the needs of some homebuyers
Choosing Between Resale Properties and New BTOs
Resale Homes: The Smart Pick
Most homebuyers lean toward resale flats because they offer instant move‑in readiness and a chance to snag a nicer layout or a better location. The market practically hands you a key and a sweet deal.
BTOs: Still Worth a Look?
Even though resale is often the go‑to choice, BTOs (Built‑To‑Order) remain a solid option for those who crave brand‑new construction and want to pick a floor plan that fits exactly what they need.
Why You Might Choose a BTO
- Customise your taxes and furnishings from the ground up.
- Avoid hidden repairs that can haunt a resale flat.
- Enjoy the latest amenities and safety standards.
Ready for a BTO?
If you’re still curious about BTOs, head over to our BTO Guides for this year’s projects. They’ve got all the juicy details you need to make an informed decision and keep your future home on track with bright, new corners.
Preparing your next steps for a resale flat
Thinking About Reselling? Let’s Cut Those Costs!
Got your eye on that resale route? Before you jump in, take a deep breath and ask yourself this: How much are you really paying to own that place? It’s all about trimming up the “cost of ownership” so you keep more of that hard-earned cash.
Step 1: Find Out Which Grants Are for You
- SS2 Grants: Handy for first‑time buyers in Singapore. They slice off a chunk of the up‑front costs.
- Additional Grants: Depending on your household income, there might be extra help. Don’t miss out.
- Check Your Eligibility: It’s quick—just a few clicks and you’ll see if you qualify.
Why Check the Grants? Because a Smart Budget is a Happy Budget
Grants can be your secret weapon. They give you breathing room when it comes to:
- Cash for the Downpayment
- Repayment Loans
- Monthly EMI tweaks
Take a Breath, Then Take Action
Once you know what helps you, you’re ready to:
- Plan your next home’s budget more accurately.
- Keep more money in your pocket for those crazy parties or your next adventure.
And remember—you don’t have to do this alone. Get advice from a mortgage expert or chat with a friend who’s experienced the home‑buying journey. It’s all about staying smart and keeping stress at bay.
So, next time you’re talking resale, keep your notebook handy (or your phone, whatever works for you) and jot down those grants. Your future self will thank you!
