BTO vs Resale — which is really cheaper?

Everyone says BTO is cheaper. But factor in 4-5 years of rent, shell renovation, and opportunity cost — and the answer might surprise you.

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BTO vs Resale True Cost Calculator

Enter both scenarios side by side. We'll calculate the real cost including hidden expenses most people forget.

BTO Scenario

Shell BTO units need more renovation ($40K-$80K typical)
Cost of renting while waiting for BTO keys

Resale Scenario

Resale units need less reno ($20K-$40K typical)
COV must be paid in cash. Varies by location ($0-$50K+)

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Guide

BTO vs Resale HDB: Understanding the True Cost

The BTO Discount Illusion

BTO flats are priced 20-30% below market value, making them look like a no-brainer. But the sticker price hides significant costs: 4-5 years of rent while waiting, higher renovation costs for shell units, and the opportunity cost of money that could have been invested or used as a down payment for a resale flat you can move into immediately.

Wait Time: The Hidden Cost

BTO wait times range from 3 to 6 years depending on the project and location. During this period, you'll need to rent a home. At $2,000/month, a 4-year wait costs $96,000 in rent alone — money that goes to your landlord, not towards your own home. This is often the single biggest hidden cost that makes BTO less attractive than it appears.

Renovation: Shell vs Move-in Ready

BTO flats are delivered as bare shells — concrete walls, no flooring, no built-in kitchen. A typical BTO renovation costs $40,000-$80,000. Resale flats, while they may need refreshing, typically cost $20,000-$40,000 to renovate since the basic infrastructure (flooring, walls, plumbing) is already in place.

Grants: BTO vs Resale

Both BTO and resale buyers can access CPF Housing Grants, the Enhanced CPF Housing Grant (EHG), and the Proximity Housing Grant (PHG). The grant amounts are similar for both pathways — so grants don't significantly tip the scale either way. The key difference is the total out-of-pocket cost after factoring in rent and renovation.

Cash Over Valuation (COV)

Resale buyers may need to pay COV — the difference between the agreed price and HDB's valuation. This must be paid in cash and cannot be covered by CPF or loans. COV varies widely: $0 in some areas to $50K+ in mature estates. Always factor this into your resale budget.

FAQ

Frequently Asked Questions

Not necessarily. While BTO prices are 20-30% below market, the total cost includes years of rent during the wait, higher renovation costs for shell units, and opportunity cost. For couples already renting, a resale flat that you can move into immediately may actually cost less overall when you add up everything.
Most BTO projects take 3-5 years from application to key collection. Some projects in non-mature estates may be faster (3 years), while complex developments or those affected by construction delays can take up to 6 years. HDB has been working to reduce wait times, but 4 years remains a realistic average.
Yes, largely. First-timer families can get the CPF Housing Grant ($80K for 4-room or smaller), Enhanced CPF Housing Grant (up to $120K based on income), and Proximity Housing Grant ($30K) for both BTO and resale. The main difference is that BTO prices are already subsidised, so the effective "discount" from BTO pricing plus grants can be substantial — but you pay for it with time.
COV is the amount you pay above HDB's official valuation for a resale flat. It must be paid entirely in cash — you cannot use CPF or loans. In 2025-2026, COV ranges from $0 in less popular areas to $50,000+ in mature estates like Queenstown, Bishan, and Toa Payoh. Budget $10K-$30K as a conservative estimate for a 4-room flat in a decent location.