Planning to get yourself a brand new crib, but got money on your mind? Whether you’re a first-time homeowner or someone looking to make that big upgrade, our quick guide will ask all the right questions to help you decide if you should opt for a BTO, Resale Flat, or Private Housing.
Growing up in Asia means that we have unique cultural norms that our Western counterparts don’t quite understand: we typically only move out once we get married or when we reach an age where we’ve earned enough to indulge in big-ticket items. And when that happens, the sudden jump from giving a nominal sum to our parents as rent to paying off loans in the thousands can feel very jarring. Plus, there are so just many different options on the housing market and even more terms and conditions to take note of! While we may not be able to answer life’s mysteries, we can give you a comprehensive summary of Singapore housing cost comparisons 2022 — so you can make an informed decision when purchasing your BTO resale flat or private housing.
🪴 Singapore Housing Cost Comparisons 2022: At A Glance
While the most natural thing to do is to look at prices across the board and make comparisons that way, let’s take a step back and review each option individually while addressing the pros, cons and suitability of each type of housing.
| BTOs | Resale Flats | Private Housing | |
| What are they? | 👉🏻 Spankin’ new flats that come with enhanced subsidies | 👉🏻 Flats that are older than 5 years 👉🏻 Often found in mature estates | 👉🏻 Mainly condominiums, and can be either freehold or leasehold (a.k.a. 99-years) |
| Who are they good for? | ✅ Great for first-time homeowners and those who meet the income ceiling (S$14,000) | ✅ Great for individuals whose incomes exceed the income ceiling set for BTO purchase ✅ A good option for those who want their flats earlier | ✅ If money is not an issue, this would likely be the better option for most, thanks to its oft-higher resale value |
| Estimated cost | 👉🏻 S$423,000 to S$700,000 👉🏻 Price depends on location, flat attributes and timing 👉🏻 Can space out downpayment in two separate instalments (Staggered Downpayment scheme) | 👉🏻 S$600,000 – S$1,000,000 👉🏻 Expect to fork out at least 10 – 15% more than what BTO costs 👉🏻 Pay by cash, CPF savings, housing loan, or a bank loan | 👉🏻 From S$800,000 for a freehold studio apartment, and from S$600,000 for ones that aren’t freehold 👉🏻 From S$970,000 for a three-room |
1. Built-To-Order Flats
What are they?
Any and every Singaporean would be familiar with the concept of a built-to-order at this point. After all, it’s often touted as a rite of passage for young adults looking to own property here locally. In case you need a lowdown on what owning a BTO entails, you should definitely check out our comprehensive guide on purchasing one here in Singapore!
Who are they good for?
Designed for first-time homeowners, BTOs are meant to ensure that all Singaporeans have a nice cosy abode without the crazy costs — which explains why there are attractive grants and subsidies, as well as income ceilings to ensure that those who need a home will get one. In fact, HDB explicitly lists out its eligibility criteria right here.
BTOs are also great for those who’re pickier about their homes. When else do you get the chance to move into a spanking new home and start your 99-year countdown from the very beginning?
Who is it unsuitable for?
We mustn’t forget that the BTO is a form of means-testing to keep HDB prices affordable for all. So it shouldn’t come as a surprise that this type of housing project will not be suitable for you if you hit the income ceiling. It also isn’t quite suited for you if you don’t wish to wait years for your flat to get ready. According to the HDB, individuals who placed their bid for the November 2021 BTO Exercise will have to wait approximately 3 to 5 years, no thanks to the effects of COVID-19 on manpower and raw materials. So ask yourself: is it worth the wait?
How much should I prepare to fork out?
While the price depends on a series of criteria such as location, flat attributes and timing (we’ve covered this in our BTO guide too, so head over for a more comprehensive look!), HDB does place quite a huge emphasis on whether the housing project is situated in a mature or a non-mature estate.
Based on the November 2021 BTO exercise for 4-rooms, prices start from as low as $423,000 in non-mature towns and go up to $700,000 in mature towns and locations, public housing models, like the newly launched River Peaks I & II.
However, these prices do not include the Enhanced CPF Housing Grants (EHG), which offer would-be homeowners subsidies of up to $80,000. Once you add this into the equation, it’s pretty clear why and how BTOs are honestly the most affordable among the other housing options!
2. Resale Flats
What are they?
Resale flats have probably been around since the beginning of Singapore’s property market, but they’ve recently become a hot, hot topic — likely because of its oft-overly subscribed sibling, the BTO. Flats under this category include older flats in the more mature estates, as well as newly-minted Minimum Occupancy Period (MOP) BTO flats that are typically just over 5 years old.
Who are they good for?
Resale flats are a great alternative for those who are ineligible for a BTO (no thanks to their relatively higher income levels), but still wish to capitalise on the grants and subsidies available, which, according to HDB, goes up to $140,000!
It’s also a great alternative for those who dislike playing the rather unromantic and anxiety-inducing waiting game. On average, purchasing a resale flat will only take you less than four months to complete, as opposed to the years involved in a BTO.
Who is it unsuitable for?
We won’t say that there are absolute downsides to purchasing a resale flat, but there are certain disadvantages when you compare them to BTOs and private condominiums. For instance, your occupancy period in said flat will be a lot shorter, which means that you likely won’t be able to pass it on to the next generation if that’s in the cards.
Or, if you view properties as a form of investment, then you’re probably better off with a BTO or private housing. Why? That’s because HDBs are 99-year leasehold properties, so the older the flat, the lower its value in the housing market.
How much should I prepare to fork out?
HDBs, resale or not, are definitely more affordable than your private condominiums by a long shot thanks to the subsidies and strict eligibility criteria. But of course, when comparing BTO flats to resale flats, the latter will typically cost more thanks to its Cash Over Valuation, or COV.
💡 Tip: check out our comprehensive resale flat guide right here to learn all the necessary acronyms to tackle the HDB behemoth!
| 4-room BTO Flat in Tampines (Aug 2021 Exercise) | 4-room Resale Flat in Tampines (PropertyGuru listings as of 14 December 2021) |
| $352,000 – $445,000 | $560,000 – $1,250,000 |
Case in point? We did a quick Google search to determine the price range for a 4-room flat in Tampines, a mature estate. This illustrates how property prices are ultimately determined by various factors, and while there may be anomalies in property prices, the general trend is that resale flats tend to cost more than their BTO counterparts.
However, the past year has seen some crazy shifts in demand, driving up the prices of resale flats to unprecedented levels. In a recent CNA report, resale prices had hit an all-time high in the 3rd quarter of 2021 — after a long steady climb the past six quarters. I mean, who could forget the collective gasp made by Singaporeans when news broke about the Bishan resale flat that sold for $1.36M?
Don’t be disheartened, though. According to experts, the crazy HDB resale prices are expected to lose steam soon, so while prices will still see an increase (COV! Appreciation! Inflation!), they won’t hit a point where it’s downright unaffordable for the masses — the million-dollar flats are likely exceptions and not the norm.
3. Private Housing
What are they?
The 5Cs may be outdated, but owning a private condominium still remains a goal for many Singaporeans — especially if it’s a freehold property. While private housing includes landed property, we’ll be excluding them from this list as they make up just 5% of the total housing stock in Singapore. And let’s be real, do you really need to read this article if you can afford a cosy terrace house?
Who are they good for?
Private housing is a great choice if you have a high disposable income that’ll allow you to pay off the high loans. It’s also great for those who want to flip their properties in the future — after all, the world is your oyster in the private housing market.
Lastly, private housing is also an excellent choice for those who wish to pass on their homes to the next generation. But one thing to note is that this mainly applies to freehold properties i.e. you own the property AND part of the land it’s built on forever (or until there is an en bloc sale).
Who is it unsuitable for?
If you don’t think you’re capable of setting aside at least $3,000 each month to pay off your loan and maintenance fees, then you might want to reconsider this option. After all, the payment process for a condo differs slightly from that of HDBs — a 25% down payment as opposed to a 10% down payment with an HDB loan.
Another factor would be if you’re a stickler for size. Unless you’re purchasing an older apartment, chances are your place of interest will be smaller than an HDB. According to PropertyGuru, the median size of condominiums have shrunk significantly, with average sizes dipping from 1250 sq ft to 764 sq ft. That’s a lot of space gone.
How much should I prepare to fork out?
Honestly, the sky’s the limit here. Because the private housing market gives in to the forces of demand and supply, it boils down to the very same factors that drive the HDB market — location, house attributes and timing — but to a much greater extent.
If you’re looking at popular districts like 10 (Tanglin/Holland), 12 (Balestier/Toa Payoh), or 15 (East Coast / Marine Parade), then you’d better be prepared to make it rain. A quick search on PropertyGuru for a 3-bedroom apartment in East Coast shows that the cheapest on the market stands at $1.2 million, and that’s only at 786 sqft. Yikes. So, if you’re still trying to build that nest egg, you might have to settle for a property in less accessible parts of Singapore.
A Home To Call Your Own: What’s It Gonna Be?
At the end of the day, after looking through these Singapore housing cost comparisons 2022, you’ll have to make the call on how much you’re willing to spend, and what sacrifices you’d be willing to make in order to own your dream home. If there’s one thing we hope you’d take away, it’s that you should not overstretch your finances, especially for a long-term commitment like a house.
This is just one tiny chapter in your life, so instead of giving up your youth and compromising on your mental health just to service the loans, opt for the long, scenic route towards achieving your dream home. Life is but a journey you should enjoy, after all!
Once you seal the deal on that house, it’s no longer going to be monthly phone and credit card bills. It’ll include property taxes, utility bills, insurance… the list goes on. So to ensure that you’re spending smart, why not make use of that YouTrip Card tucked away in your wallet? Whether it’s for purchasing new furniture from Taobao, or for that long-awaited #treatyourself VTL trip, you’ll get to enjoy Wholesale Exchange Rates and other exclusive YouTrip Perks that’ll make a world of a difference in the long run.
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