Chances are, you already know a fair bit about HDB’s Build-To-Order (BTO) and resale flats. But there’s a third option available in the public housing market: Sale of Balance Flats (SBFs). In this article, we explain what these flats are and what to take note of.

What is a Sale of Balance Flat (SBF)?

Sale of Balance Flats (SBF) are leftover flats from previous BTO launches, surplus Selective En Bloc Redevelopment Scheme (SERS) replacement flats and repurchased flats. These include flats that previous owners chose to give up. Possible reasons for this include couples splitting up or inability to finance their flats.

What’s the eligibility criteria to buy a Sale of Balance flat?

The eligibility criteria is similar to getting a BTO flat. If you are buying a flat with your fiancé/fiancee or spouse, you’ll need to be at least 21 years of age. Alternatively, if you’re buying a flat as a single, you’ll need to be at least 35 years and above.

(You can find out more about HDB’s eligibility criteria on HDB’s website).

How long do you need to wait if you purchase a Sale of Balance flat?

It depends! If you’re purchasing a unit that has already been built, you’ll be able to collect your keys within three months of your date of purchase from HDB. If not, you’ll need to wait for the flat to be completed. This can take anywhere from a few months to three or four years.

But the main advantage SBFs have over BTOs is that they have a much shorter waiting time.

When is the next Sale of Balance flat launch?

SBF launches are held twice a year, coinciding with HDB BTO sales launches in May and November.

ALSO READ: What you need to know about HDB's Sale of Balance Flats in 2023

How many available flats are there in each Sale of Balance flat launch?

It depends. For instance, in the sales launch in May 2022, HDB launched 1,952 flats for sale via SBF. More recently in November 2022, 1,071 SBF units were launched for sale.

Do take note that availability of a unit also depends on the ethnic quota. Depending on the existing racial profile of resident households in the block, a listed unit may only be made available to applicants of a certain race.

Can you apply for both a Sale of Balance flat (SBF) and a Build-To-Order (BTO) at the same time?

No, you can’t. In the same exercise, you can either apply for a Sale of Balance flat OR a BTO flat, not both.

How much does a Sale of Balance flat cost? Is it more expensive than a BTO? 

It depends on factors such as the location of the flat and other attributes such as floor level and remaining lease.

So some SBF flats may actually be cheaper than BTO flats.

For instance, during the May 2022 BTO and SBF launch, 2-room Flexi SBF flats at Yishun were priced from $102,000 onwards, which was cheaper than those launched through BTO at $123,000.

But if you’re getting a unit that is currently being constructed, expect to pay slightly more than what you would have paid if you’re getting the exact same unit via BTO. And it may be more expensive if you’re getting a completed unit. This is because prices for SBF have been adjusted to market conditions.

During the same launch, 2-room Flexi SBF flats at Toa Payoh had a starting price of $210,000, which was higher than the starting price of 2-room Flexi BTO flats in the same estate at $162,000.

Nevertheless, SBF are subsidised flats. So they’re still cheaper than the ones available on the resale market.

How does HDB allocate BTO and SBF flat supply?

When an application for a Build-to-Order (BTO) or a Sale of Balance Flat (SBF) is submitted, it goes to a ballot to determine a queue number. But, depending on whether you’re a first-timer or a second-timer, it might be more difficult for you to get a flat because of HDB’s predefined allocation percentages.

Other factors and criteria, such as whether the flat is located in a non-mature estate, also come into play. Here’s the rundown on the allocation of BTO and SBF flats in every sales exercise to help you understand your chances of getting a flat and plan ahead.

(HDB has recently increased the allocation for first-timer buyers looking to buy in a non-mature estate.)

BTO: For 2-room Flexi flats

Non-mature estates:

• At least 40 per cent of the flat supply or 100 units in a project for senior applicants aged 55 and above
• 20 per cent of the remaining non-senior flat supply for first-timer family applicants
• 15 per cent of the remaining non-senior flat supply for second-timer applicants (down from 30 per cent)
• 65 per cent of the remaining non-senior flat supply for first-timer singles (up from 50 per cent)

Mature estates:

• At least 40 per cent of the flat supply or 100 units in a project for senior applicants aged 55 and above
• 95 per cent of the remaining non-senior flat supply for first-timer applicants
• 5 per cent of the remaining non-senior flat supply for second-timer applicants

BTO: For 3-room flats:

Non-mature estates:

• 85 per cent of the flat supply for first-timer applicants (up from 70 per cent)
• 15 per cent of the flat supply for second-timer applicants (down from 30 per cent)

Mature estates:

• 95 per cent of the flat supply for first-timer applicants
• 5 per cent of the flat supply for second-timer applicants

BTO: For 4-room or larger flats:

Non-mature estates:

• 95 per cent of the flat supply for first-timer applicants (up from 85 per cent)
• 5 per cent of the flat supply for second-timer applicants (down from 15 per cent)

Mature estates:

• 95 per cent of the flat supply for first-timer applicants
• 5 per cent of the flat supply for second-timer applicants

For BTO projects with shorter waiting time:

• 95 per cent of the flat supply for first-timer applicants
• 5 per cent of the flat supply for second-timer applicants

The flat supply location differs slightly for Sale of Balance Flats (SBF):

SBF: For 2-room Flexi flats:

Non-mature estates:

• At least 40 per cent of the flat supply for senior applicants aged 55 and above
• 90 per cent of the remaining non-senior flat supply for first-timer applicants (100 per cent of flat supply if fewer than 20 units)
• 5 per cent of the remaining non-senior flat supply for second-timer applicants (deprioritised* if flat supply fewer than 20 units)
• 5 per cent of the remaining non-senior flat supply for first-timer singles

*Meaning that seniors and first-timer families will be shortlisted within 100 per cent of the flat supply and thereafter, depending on the supply, there may be second-timer families invited to book a flat.

Mature estates:

• At least 40 per cent of the flat supply for senior applicants aged 55 and above
• 95 per cent of the remaining non-senior flat supply for first-timer applicants
• 5 per cent of the remaining non-senior flat supply for second-timer applicants

SBF: For 3-room and larger flats:

Both non-mature and mature estates:

• 95 per cent of the remaining non-senior flat supply for first-timer applicants (100 per cent of flat supply if fewer than 20 units)
• 5 per cent of the remaining non-senior flat supply for second-timer applicants (deprioritised if flat supply fewer than 20 units)

According to HDB, the above allocation percentages for BTO and SBF flats are indicative and some flats may additionally be set aside for quota-based priority schemes. All said and done, it’s generally more difficult for second-timer applicants to secure a flat through BTO or SBF in a mature estate than in a non-mature estate.

How do you know if a Sale of Balance flat is suitable for you?

The good thing about Sale of Balance Flats launches is that you get more information about the actual locations of the units available. This includes the block number and unit number, which are not available during a BTO launch.

On the other hand, from our observation, Sale of Balance Flats tend to be those situated on the lower floors. If you’re not really selective over the specifics of your flat (orientation of the unit, the level the flat is on, etc), then by all means, go ahead!

However, if you’re particular about choosing a unit by yourself, you might be better off taking the usual route of applying for one via regular BTO balloting, or buying a resale flat.

The shorter waiting time also translates to a reduced time period to save up for the downpayment and other costs. On the other hand, with BTO flats, you’ll have a buffer of three to four years to save up before your flat is ready.

Plus, if you apply for a Sale of Balance flat and manage to get a unit which is already built, you’ll need to register your marriage within just three months of key collection. Talk about a quick turnaround!

If BTO and SBF don’t suit your needs, there’s always resale. Although priced higher than BTO and SBF flats, HDB resale flats offer home-seekers maximum choice and flexibility.

ALSO READ: 5 things you must know before you apply for HDB's Sale of Balance Flats (SBF) in 2022

So, should you go for BTO, SBF or resale?

Actually, we have a simple thought process for this.

If you can wait, apply for BTO while checking out resale flats in the area you’re applying for (on a property portal such as 99.co). You can gain insights by doing so, for example how much your flat could be worth when it’s built, and also if your area is a high buyer demand or high seller supply area.

If you have a specific area you want to live in that’s not in the BTO sales exercise, apply for SBF. SBF sales launches offer a wider range of mature and non-mature estate options as compared to the four to five estates in a typical BTO launch. Before submitting your application, you may want to compare resale flat options and prices in the area you want to live. This comparison is very important so that you don’t lose out.

Happy house-hunting!

This article was first published in 99.co.