BTO vs. Resale flats

Buying Property Guide

Build-To-Order flats are newly designed apartments mass released to meet the public housing demand. Buyers can choose from several locations available. Resale flats are older and most have less than 99-year left on the lease.

A BTO and resale flat each has their own set of benefits and appeal to the different types of eligible applicant.

We'll take a look at some of the pros and cons of BTOs and resale flats.

BTO Pros

1. Compared to resale flats, BTOs are certainly the cheaper option.

2. Design-wise, most BTOs mimic condo designs

3. BTO flats tend to come with added facilities in and around the building

4. BTO flats are now built to be eco-friendly

5. BTO flats take a short time to complete

6. The flat is new and you begin with 99-year leasehold status

BTO Cons

1. Interior of BTOs may require renovations according to applicants' preference

2. BTO 5-room flats are much smaller than 5-room resale flats

3. BTO flats are generally built in non-mature towns making it difficult for couples to live near their families

4. Price is non-negotiable

Resale Pros

1. Resale flats are bigger - rooms, kitchen, bathrooms, living room are all far more spacious

2. Little to no renovation is required if the flat is in a good condition

3. Very little wait time as resale flats can be acquired as soon as both parties come to a mutual agreement

4. Resale flats are in mature estates making it easy for couples to live close to their parents

5. Resale flats in mature estates have established infrastructure and amenities

6. Prices are negotiable

7. Eligible for additional housing grant if you live near your parents

Resale Cons

1. Resale flats are much more expensive due to the Cash Over Valuation (COV)

2. Resale flats are less than 99 years. It is possible to end up paying too high a price because of COV for a flat with not many years left

3. More time may be spent searching for a suitable flat

4. Process can involve several third parties such as housing agents and lawyers

No doubt both BTOs and Resale flats come with negatives and positives; the final decision however, is what is best for you and your family.

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