First-time homebuyers who can’t afford to wait four or five years for a BTO flat or pay for an HDB resale flat – which prices continue to climb upwards, rising by 0.9% in Q1 2023 – can fast-track the process by applying for the HDB Sale of Balance Flats (SBF) 2023 or Open Booking of Flats (OBF) unit.
However, the SBF exercise can be competitive, with the success rate for SBF has declined from 52% in 2017 to 17% in 2021. Meanwhile, the success rate for securing a unit during the OBF exercise also dipped to 65% in 2021, compared to the 100% success rate when it was first launched in 2019.
In this article, we’ll explain the HDB SBF exercise and how it compares against the BTO and OBF launches. And should you decide that you’d like to apply for an SBF unit, we’ll also guide you through the eligibility criteria and application process for the HDB SBF 2023 exercise.
What Is the Sale of Balance Flats Exercise?
SBF HDB scheme is essentially an exercise that pools unsold flats from past BTO launches, surplus flats from Selective En bloc Redevelopment Scheme (SERS) projects, and any flats repurchased by HDB.
The SBF exercise occurs twice yearly, usually in May and November. These SBF HDB flats are released alongside the BTO flat launches in those months.
Number of SBF Units Launched (Nov 2020 to Nov 2022)
| Nov 2022 | 1,071 |
| May 2022 | 1,952 |
| Nov 2021 | 1,798 |
| May 2021 | 2,494 |
| Nov 2020 | 5,220 |
What Happens to Unselected Sale of Balance Flats 2023 Units?
Previously, all unsold flats from HDB SBF exercises will be first offered through the Re-offer of Balance Flats (ROF) exercises. If these flats remain unselected, they will be made available for open booking. However, in March 2020, the government announced the ROF scheme would be removed to allow home buyers to obtain their flats more quickly.
With the removal of ROF exercises, all unsold BTO flats will first be offered through the SBF HDB exercise. If they remain unselected, these HDB flats will then be offered under the OBF exercise.
These flats under the OBF exercise are available on a first-come-first-served basis. That means once all the flats are booked, that’s it!
| What are they | HDB SBF flats | OBF flats |
| When they are made available | Twice a year, typically in May and November | Subject to HDB’s announcement |
| Flats offered | Balance flats from previous BTO launches | Balance flats from past HDB SBF launches |
| Number of flats offered | Varies, typically about 3,000 | Varies, typically less than 300 |
| Application period | One week | Open throughout the year (ends when all available flats are booked) |
| Unit type | Most unit types are available | Limited choices for unit size |
| Ethnic quota | Relatively spread out among different races | Usually, fewer units for Chinese buyers |
HDB BTO Flats vs Sale of Balance Flats 2023: What’s the Difference?
1. Sale of Balance Flats 2023 Units on Offer Have a Shorter Wait Time
The main difference between the HDB SBF and HDB BTO flat is the shorter waiting time for a completed unit.
Since the construction of BTO flats will only begin if at least 70% of flats are booked, this means the process is longer as the waiting time is usually about three to four years. Furthermore, while COVID-19 BTO construction delays have largely been alleviated, their effects still linger. These factors can weigh on first-time homebuyers who are considering marriage and having kids in the near future.
In contrast, HDB SBF launches sell leftover flats from projects that are either under construction or have already been completed (that are ready to be moved into). As a result, you can anticipate receiving your home much sooner.
This is especially great for young couples who do not want to delay marriage until they have a home, or do not wish to spend money on rental homes while waiting for their BTO unit to complete. Single unwed parents and seniors also stand to benefit from the shorter waiting time for the SBF exercise.
In the upcoming May 2023 BTO sales launch, keen buyers can look forward to balloting for a flat in Bedok, Kallang/Whampoa, Serangoon, and Tengah. However, do take note that you can only apply for one scheme at any given time.
So, if you’re already planning to apply for the upcoming May 2023 BTO launch, you can’t put in an application for the Sale of Balance Flats 2023 May exercise.
2. Sale of Balance Flats 2023 Offers You More Locations to Choose From
Since the scheme pools unsold flats from many projects, the HDB SBF launches are located in both mature and non-mature estates. While there are fewer total units available for sale, you have more locations and options to choose from when applying for an HDB SBF flat.
3. You May Not Get a Sale of Balance Flats Unit You Like
When you submit an application for a flat under the BTO program, you’re essentially balloting for the opportunity to choose the best flat out of the bunch. However, applying for a flat under the HDB SBF exercise is different.
Since the HDB SBF units available are ‘leftover’ flats from previous sales exercises, these flats are sometimes considered ‘undesirable’ by previous buyers due to the units’ location. For example, lower floor units that are close to the centralised rubbish chute disposals, west-facing units or units with obstructed views.
Having said that, this isn’t the case for every leftover flat. Some desirable units might have ended up in the pool due to previous buyers being indecisive, financial constraints, or having to give up the unit for other reasons like a breakup. Therefore, depending on your luck, you might just find your perfect unit.
4. There’s More Information About the Sale of Balance Flats Units Compared to BTO Flats
Another perk of the sale of balance scheme is that HDB provides information down to the last detail.
In addition to the location, type, flat size and map (things that are provided in BTO sales), you will also know the block and unit numbers of the balance flats, as well as the HDB quota when you want to apply for HDB SBFs exercises.
5. Sale of Balance Flats Units Tend to Be Slightly More Expensive Than BTO Flats
Even though the government also subsidised HDB’s Sale of Balance Flats, they are slightly more expensive than BTO flats. However, they still cost much lesser compared to HDB resale flats.
6. HDB SBF Units Are Subject to the Ethnic Race Policy (EIP)
Buying an HDB Sale of Balance Flats unit also comes with a race quota restriction: it might not be available for certain racial profiles, particularly Chinese.
7. It’s Harder to Secure an HDB Sale of Balance Flat Unit than a BTO Flat
Since there are much fewer HDB SBF units available compared to BTO flats, thus your chances of securing an HDB SBF unit are slimmer.
Want to get an HDB SBF flat? Here’s an overview of the eligibility criteria for HDB SBF Flats 2023.
HDB Sale of Balance Flats 2023 Eligibility Criteria
| Eligible applicant/ Family nucleus | You’ll need to qualify for a new flat under one of HDB’s existing eligibility schemes: 1. Public Scheme 2. Fiance/Fiancee Scheme 3. Orphans Scheme |
| Citizenship | At least one of the applicants must be a Singapore Citizen
At least one other applicant must be a Singapore Citizen or Singapore Permanent Resident |
| Age | You must be at least 21 years old |
| Income ceiling | You are within the set income ceiling for the flat that you want to apply for: $14,000 for families, $21,000 for extended families |
| Property ownership | 1. You and all other applicants/occupiers listed in the flat application don’t own other property, whether overseas or locally
2. You have not disposed of any property within the last 30 months 3. You and all other applicants/occupiers listed in the flat application cannot invest in private residential property from the date of the flat application till after the Minimum Occupation Period (MOP) 4. You haven’t bought a new HDB/Design, Build and Sell Scheme (DBSS) flat or Executive Condominium (EC) or received a CPF Housing Grant before 5. Or, you have only bought one of those properties prior and only received one CPF Housing Grant thus far |
Note that the above criteria are only if you’re applying as a family nucleus, or with your fiance/fiancee/spouse.
Since 2020, unwed parents can now buy 2-room Flexi or 3-room flats in non-mature estates if they have stable employment and/or adequate funds, and will also be considered for public rental flats should they have insufficient finances.
If you are a first-timer single applicant buying an HDB SBF flat, you’ll need to fulfil the following criteria:
- You must be a Singapore citizen
- You must be at least 35 years of age if you are unmarried or divorced, or 21 and above if you are widowed or an orphan
- You must meet the EIP and SPR quota for the area your flat is in (this is more likely to impact the location of your flat)
- Your monthly household income doesn’t exceed $7,000
How Do I Buy an HDB SBF Unit?
Here’s a rundown of how to apply for an HDB SBF:
1. Apply for a Unit During the HDB Sale of Balance Flats Exercise
Once HDB announces the sale of unsold flats, you can proceed to submit an online application within the application period, provided you meet all the eligibility criteria. Each launch is about a week long, so you do have some time to make a decision about the flats.
2. Await HDB SBF Results and Get Your Finances in Order
Following this, if your application is successful, you will be shortlisted via a computer ballot. The HDB SBF results are usually announced in about one and a half months.
If luck is on your side and you have a short queue number, then your chances of getting the flat you really want are much higher. Check out the SBF flat distribution for non-seniors in mature and non-mature estates on the HDB website to better understand your chances.
3. Get Your Finances in Order and Book Your Flat With HDB
Congratulations if you’re one of the lucky ones who got an SBF flat! You’ll now want to get your finances to prepare for the flat purchase. If you’re getting an HDB loan, you must apply for your HDB Loan Eligibility (HLE) letter. If you’re taking out a bank loan, you must request an Approval-in-Principle (AIP) letter from your bank.
You will then be invited to book your flat according to your allocated queue number and unit availability. You’ll be shown what’s available to you when you go to the HDB Hub for your appointment, and if you like what’s available, you can make the booking on the spot. There’s an Option to Purchase (OTP) fee payable, which is $500, $1,000 or $2,000, depending on the size of your chosen flat.
4. Collect Your Keys
For flats that are already built, you can collect the keys and move in within three months. For flats approaching completion, you will be able to collect the keys once the flats are ready.
Alternatives to the HDB Sale of Balance Flats 2023 Exercise
As you can see, the HDB SBF exercise offers the attractive prospect of getting a brand-new HDB flat, but with shorter waiting times than an HDB BTO flat. But the chances of a successful application can be slim.
Alternatively, you can take a look at HDB resale flats if you need a home in a hurry. For those who are particular about wanting an HDB resale flat with a long lease, check out this list of freshly MOP-ed HDB resale flats in Singapore to expect in 2023/2024.
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