BTOs are cheaper than resale flats because the prices are heavily subsidized by the government during launch. Resale flats are also subject to market valuation, and can thus fluctuate in price. In the following price comparisons, we will be looking at figures in the lower end of the resale market.
As of March 2019, a 4-room BTO in non-mature estates such as Yishun costs around $259,000 to $304,000. A 4-room BTO in Punggol will set you back around $270,000 to $353,000.
In comparison, the resale flat price of a 4-room HDB in Yishun ranges from around $289,000 to $330,000. The Punggol counterpart is pricier, averaging about $500,000.
As you can see, HDB resale flats seem to be more expensive, but not by an extravagant amount. However, a glance at other non-mature estates shows that the price difference between them does not actually vary that much. In most cases, the resale flats are about $50,000 more expensive than the BTOs in the same location. For instance, Sengkang BTOs go for $270,000 to $353,000, while a resale flat goes from $348,000 to $430,000.
HDB resale prices are currently declining, and the gap between the prices of resale flats and BTOs are quite narrow. Despite the initial price tag of BTOs being lower, there is a chance that you can actually save more money by getting a resale flat. As your appointed agent, I will look through your financial and lifestyle needs and I will advise on what is the best choice for you. The one that will benefit you in the long run. Click below button for a FREE CONSULTATION.