Chances are, you already know a fair bit about HDB 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?
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, possibly due to couples splitting up or inability to finance their flats.
What’s the criteria to meet to be eligible to buy a Sale of Balance flat?
Similar to getting a BTO flat, if you are buying a flat with your fiance/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, which might take anywhere from a few months to three or four years.
The main advantage SBFs have over BTOs is that they have a shorter waiting time.
When is the next upcoming Sale of Balance flat launch?
SBF launches are held twice a year, coinciding with HDB BTO sales launches in May and November.
How many available flats are there in each Sale of Balance flat launch?
It depends. For instance, in the HDB SBF sales launch in November 2020, there were 5,220 available flats of different sizes in various estates across Singapore.
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 and a Build-To-Order 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 do Sale of Balance flats cost?
If you’re getting a unit that is currently being constructed, expect to pay slightly more than what you would 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.
On the other hand, it’s still a subsidised flat. So it’s still cheaper than the ones available on the resale market.
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 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.
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 launches. 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.
If you need a flat ASAP, apply for SBF while actively seeking resale flats through a property portal such as 99.co. If you’re particular about location and other attributes, drop SBF altogether and just focus all your energy into looking for a resale flat.
Happy house-hunting!
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The post What you need to know about HDB’s Sale of Balance Flats (SBF) [2021 Edition] appeared first on 99.co.
