Price Difference between BTO and Resale Flats
Ministry of National DevelopmentSpeakers
Summary
This question concerns the average price differences between BTO and resale flats, and between BTO units in non-mature and mature estates. Minister for National Development Lawrence Wong stated that HDB benchmarks BTO prices against resale comparables, applying discounts and adjustments for attributes to ensure affordability. In non-mature estates, BTO prices were $71,000 to $108,000 lower than resale units, though housing grants provide further support of up to $90,000. Eligible first-timer families receive substantial grants for both flat types, while mature estates command higher premiums due to location and demand. For example, a 4-room BTO flat in mature Ang Mo Kio costs $162,000 more than a similar unit in non-mature Sengkang.
Transcript
23 Mr Gan Thiam Poh asked the Minister for National Development (a) in the past one year, what is the average price difference between BTO flats (with and without subsidy) and resale flats for each flat type in the same district/zone; and (b) what is the average price difference between BTO flats in new towns and mature towns next to the new towns.
Mr Lawrence Wong: First, price difference between BTO and resale flats. In pricing new flats, HDB takes reference from the prices of comparable resale flats, makes adjustments for differences in location and attributes and then gives a discount to ensure that new flat prices remain affordable, especially for first-timer families.
The difference between the average prices of BTO flats and resale flats in non-mature estates in the past one year ranged from $108,000 for 3-room flats to $71,000 for 5-room flats. There were too few 2-room resale flat transactions for a meaningful comparison. However, direct comparisons between BTO and resale flat prices may not be appropriate or meaningful, as these flats would differ in terms of age, design features and proximity to infrastructure and amenities within the town.
In addition, first-timer families who are eligible for housing grants will enjoy up to $80,000 in grants, comprising the Additional CPF Housing Grant (AHG) of up to $40,000 and the Special CPF Housing Grant of up to $40,000. On the other hand, these eligible first-timer families buying resale flats also enjoy up to $90,000 in grants, comprising the CPF Housing Grant of $30,000, the AHG of up to $40,000 and the Proximity Housing Grant of $20,000.
Second, price difference between BTO flats in non-mature and mature estates. Flat prices are generally higher in the mature estates as they are nearer to the city centre and have higher demand. For example, the difference between the average prices of 4-room BTO flats offered in the past one year in Sengkang, a non-mature estate, and Ang Mo Kio, a nearby mature estate, is $162,000.