35 & Single: What's Next? BTO or Resale HDB?

The legal age to own a property in Singapore is 21, it doesn't matter if you are getting a public or private house. When it comes to owning an HDB flat, singles can only purchase them earliest at the age of 35. Am I the only one who thinks this age limit should be revised soon to suit the life plan of most millennials? Whereas for a private property, it is possible to go solo and own it by yourself if you had the means to by 21. But for the sake of our 35 year old single friends, we shall dissect and see which option is the best for them.

The flat types for singles have evolved over the years, it used to be far more restrictive with lesser options for them to choose from. In our current day, singles are eligible to almost all types of HDB flats, with the only tighter limitations being applied on BTO unit types.

Eligibility Terms:

HDB Schemes for Singles

There are two schemes for singles to buy an HDB flat in Singapore, the Single Singapore Citizen Scheme and the Joint Singles Scheme. The first scheme is rather straightforward, it essentially grants the rights to unmarried singles to own their own HDB flat, be it through BTO projects or bought directly from the resale HDB market.

On the other hand, the Joint Singles Scheme allows for up to four unmarried singles to jointly purchase an HDB flat. Under this scheme, the parties involved would just have to decide to register their names under tenancy or tenancy-in-common.

There are three types of grants that singles may be eligible to apply for - Singles Grant, Enhanced Housing Grant & Proximity Housing Grant. The grant(s) vary depending on the type of HDB flat you are purchasing.

To find out in exact detail on the circumstances surrounding these grants, check out our earlier piece on grants and schemes.

This is probably a more economical and familiar route, it is only probable because you've seen how some new BTOs flats can cost more than a resale flat when comparing the different areas. I suppose the greatest downside of going for a BTO project is that the wait is about four years, and for a single person who has waited for 35 years to buy their own place, I'm not sure if this is something that would appeal to them unless it is due to financial constraints. On top of that, you'll need to live there for AT LEAST five years before being able to sell and upgrade if that is in your plans to. That will be a total of nine years.

Thinking that waiting for a period of nine years to get your first pot of gold isn't too bad, right? That's probably you might not know about the other options available in the market, or you might think it is unreachable for you. Check out my article on why I nearly cancelled my BTO and you'll understand more for all you BTO hopefuls.

Just for your benefit, here are the prices of 2-room Flexi in the latest June 2024 BTO project launch:

If you didn't know or will soon find out below, resale home prices tend to be more expensive than BTOs. Location and amenities aside, the perk of getting a resale flat for singles is the ability to get the home almost immediately. Another huge plus point is that you are able to choose from any home size, because some people prefer having larger space or have the financial capabilities to own a larger home. Or even ones who simply just want to live near their family members or work places.

With the above chart generated by PropNex's proprietary app, Investment Suite, we are able to analyse both historical and LIVE data and have meaningful information for better clarity. We can see from the data generated with Investment Suite that the overall price for HDB flats in June 2024 sts at $611 psf.

And to reward you for reading thus far, here are the transaction prices of 3- , 4- , and 5-room HDB flats for the past two quarters.

If you were to take a look at the prices of resale flats, you would immediately notice the difference in price point as opposed to buying a BTO flat. The choice is ultimately yours, but always bear in mind that time equals money and the timeline for a BTO flat and a resale one will affect your next property move if you have the intention to retire comfortably.

There are several factors to consider before making the ultimate decision. If you have the time to wait and perhaps do not want to splash so much on a home, then maybe the BTO route is perfect for you - do take note that you won't have space as luxury due to the 2-room Flexi limit. But for those who are either looking to move in almost immediately, a bigger home, or have the ability to choose which town they prefer to live in, then going for resale is definitely a no brainer.

Between the two, if I was in this situation, I would personally choose the resale flat as I can move into a home and start the Minimum Occupation Period (MOP) clock. This way I can quickly upgrade or make any housing decision as soon as possible. But with my knowledge and knowhow in the real estate industry, I would actually rather explore the private property route, albeit it would probably strain my wallet a little more. But that strain to your wallet might prove to be a worthy route to take especially given the potential to greatly boost your assets. Many don't realise that they are within reach of affording a condominium.

If you are also interested in how much singles have to make to afford a condominium, and also the upsides of living in a private property, stay tuned to my upcoming article. Don't worry singles, I got you covered.

Choosing a property can a very daunting task. Want to know how you can spot the right property with confidence? Then do join our Property Wealth System Masterclass this coming 19th and 20th of October where you will get real-life insights, strategies, and tips on achieving your financial goals! Click here to find out more!

Views expressed in this article belong to the writer(s) and do not reflect PropNex's position.