Choosing The Perfect Home: The Pros And Cons Decoding Of SBF Vs BTO Flats

Despite Singapore’s reputation as one of the most expensive property markets globally, the housing sector remains fiercely competitive, creating challenges for first-time buyers. Acquiring their first home can be an arduous task, with daunting odds such as competing against over 10 families for a unit or even having to attempt multiple times before finally securing their dream home.

- WENDY KER

In the face of challenging circumstances, let’s explore the benefits of BTO and SBF and how they can help you progress towards property ownership.

HOW DOES BTO WORK?

A Build To Order (BTO) flat refers to a HDB flat that is newly constructed and launched for sale before its actual construction takes place.

In the usual process, buyers typically submit their applications during the sales launch, and construction of the flat commences only after a certain percentage (usually around 65-70%) of the apartment units have been booked. Subsequently, buyers are required to wait for a minimum period of 3 to 5 years for the completion of the flat.

On a yearly basis, HDB releases new batches of BTO flats in the months of February, May, August, and November. The upcoming BTO launch scheduled for August 2023 will introduce flats in five different estates, namely Choa Chu Kang, Kallang/Whampoa, Queenstown, and Tengah.

For those seeking flats in mature or popular estates, the competitive pricing of BTOs can make the balloting process a challenging ordeal.

WHAT ARE THE PROS AND CONS OF BTO?

As shown above, although BTOs are highly sought after by Singaporeans for housing, there are several drawbacks that can make it challenging to successfully obtain one; the most significant challenge arises from the substantial number of applicants, making the balloting process highly competitive.

Fortunately, there are multiple schemes accessible that can bring you closer to realising your dream home, provided you meet the eligibility criteria.