S$ 300,000 Profit! When should you sell your BTO? | Home Quarters SG (2023)

There’s a reason why many Singaporeans equate balloting for Build-To-Order (BTO) flats to a lucky draw. It’s not just because there’s always almost an oversubscription of hopeful buyers to obtain their first or second HDB flat; rather, it’s because up until now, BTO flats have almost always been sold at a profit. This lies largely with just how subsidized the flats are in the first place – the government sells them way below market price.

S$ 300,000 Profit! When should you sell your BTO? | Home Quarters SG (1)

Up until this point, this is all common knowledge; what we want to analyze is, when is the best time to sell your BTO flat to maximize its profits? We’ll explore this article in 3 parts:

1. BTO resale transaction over a 5 year period

Firstly, we’ll talk about the hard data regarding the average psf of BTO flats, and analyze, based on the trends of 8 BTO estates, when exactly BTO flats can be sold at its peak price.

2. BTO Hard Profit

Secondly, we’ll talk about when you should sell your BTO flat based on how you paid for your BTO flat in the first place.

3. The reasons why you may not want to sell your BTO flat, even for a large profit?

Thirdly, we’ll conclude by giving our opinions on why you may not want to sell your BTO flat, even if you can sell it at a profit.

(Video) S$ 300,000 of BTO profit ! | Home Quarters Answers Ep 22

1. BTO resale transaction over a 5 year period

Many Singaporeans tend to sell their BTO flats immediately after the 5-year Minimum Occupation Period (MOP) is reached. Let’s take a look at the following table that includes the sale transactions of 8 BTO flats to see if this decision is the correct one to maximize the sale profits of BTO flats.

S$ 300,000 Profit! When should you sell your BTO? | Home Quarters SG (2)

Highlighted in red are the peak BTO sale transaction prices within 5 years after its MOP period. As we can see from the table, 6 out of 8 BTO estates saw the prices of their units peak either on the year of MOP, or within 1 year of that, with only Sri Geylang Serai and Treelodge@Punggol continuing to appreciate over the 5 years. We should note that for Treelodge@Punggol, its average psf increased only by $10 5 years after its MOP period; as for Sri Geylang Serai, its location is pretty much unmatched, and is definitely an outlier in the charts due to its location.

S$ 300,000 Profit! When should you sell your BTO? | Home Quarters SG (3)

Sri Geylang Serai Source: Archnet

We can see that in most cases, maximum profit can be made when the BTO flat is sold early, right after it MOP. In any case, let’s zoom in on an actual example, highlighting the clear profits and how the exact calculations go down.

2. BTO Hard Profit

Let’s assume you and your spouse or fiancée are fresh graduates who have been offered starting pay, and you work for about two to three years before deciding to apply for a BTO flat together. On average, your individual salaries would be between 3.5 to 4 thousand dollars each.

S$ 300,000 Profit! When should you sell your BTO? | Home Quarters SG (4)

Enhanced Housing Grant(EHG) Source:HDB

In this case, couples would be eligible for a HDB Enhanced Housing Grant (EHG) worth 15 thousand dollars, that counts as Central Provision Fund (CPF) savings in their Ordinary Account (OA) when used to buy their BTO.

(Video) Too much? How this seller made $350K after selling a 4 room HDB
Based OnAmount in CPF account when purchasing BTO Flat
Average monthly income of household$ 62,100*
Money earned from EHG Grant$ 15,000
Grand total$ 77,100

With that out of the way, let’s calculate what happens after five years, when the couple is ready to sell their BTO flat. Assuming they use a HDB loan, and using Coralinus as an example.

HDB Housing Loan
Down payment made with CPF$ 19,162
Down payment made with cashNIL
Total amount to be paid off after 25 years$234,715
Hard profit earned after reselling flat right after MOP$ 303,245
Amount to be placed back into CPF OA account,
including accrued interest
$ 21,680
Final Profit Remaining$ 46,850

The final hard profit that a couple selling their BTO flat would earn in this case, is $46,850. Who wouldn’t jump at the chance to earn such a sum of money, in just a span of 5 years? The thing is, things aren’t always as simple as that. As such,

3. The reasons why you may not want to sell your BTO flat, even for a large profit?

To answer this question, end goal plays a huge part. We’ll split this segment into three parts.

(Video) Should You Sell Your HDB Right After MOP? Here's What Resale Transactions In District 19 Tells Us!

A. Large Condominium

Firstly, let’s say that your end goal is to upgrade to a large condominium that your entire family can live in. A property like that with a good location doesn’t come cheap – 10 or 20 years later, it’s probably only going to be more expensive.

S$ 300,000 Profit! When should you sell your BTO? | Home Quarters SG (5)

The calculations come in if you choose to sell your property now for its maximum profit, and relocate to a resale HDB flat or a smaller condominium using that profit. Even if your BTO flat can generate profit, it doesn’t mean that your next property will. With how the resale HDB market has been looking lately. You may either just breakeven, or sell at a price lower than what you bought it for in the future.

In this case, it may benefit you to be a little more prudent and continue holding on to your BTO flat until you’re ready to upgrade to a condominium. Because like we’ve said before, it’s almost impossible for BTO flats not to be sold at a profit. In any case, maximizing your profits doesn’t just mean selling your property at the highest price possible. It can also mean maximizing the use of your profits.

B. Large Resale HDB Flat

Secondly, your end goal may actually be to live in a large resale HDB flat in a prime location, because of how affordable it is for its size and location, as compared to condominiums.

S$ 300,000 Profit! When should you sell your BTO? | Home Quarters SG (6)

In this case, you may as well sell your BTO flat and immediately upgrade to the resale HDB flat you are eyeing, putting the entirety of your profits into your next resale HDB flat.

C. M.O.P Period

Lastly, your end goal might actually change after you’ve moved in to your BTO flat. 5 years waiting for it to MOP is a long time. In those 5 years, you may have started a family, made friends, or maybe your elderly parents have joined you to live in that particular estate.

(Video) How to calculate your HDB selling without an agent?

S$ 300,000 Profit! When should you sell your BTO? | Home Quarters SG (7)

Moreover, you have to factor in the fact that you have to spend about 4-6 years waiting for your BTO flat to even be ready. After waiting for such a long time for your flat, it is inevitable that you might feel some hesitation towards selling your flat after a measly five years. There have been some people that were content enough with their lives in their BTO flat that, even though they could have sold it at a profit, have chosen not to. In simple terms, money isn’t everything.


The question of when you should sell your BTO flat isn’t as simple as it seems. Sure, the simple answer is right after it MOP, but there’s a lot more financial calculations, future goals, and personal priorities that come with it.

At Home Quarters, we take all these factors into account before we advise you on how to sell your property, or what property we believe you should buy. We’d be happy to provide you with various analyses, advice, and any sort of assistance you may require, whether you’re a buyer or a seller. Leave your contact details and any queries down below, and we’ll contact you ASAP.

Contact Us

If you have any opinions regarding this article, you can let us know through commenting on our YouTube that we did on this article, sending us a quick email, or hitting us up on our Facebook and Instagram pages to shoot us a quick direct message.

If you have questions or if you are thinking about properly showcasing your house for sale, whatsapp message or call KC from Home Quarters and begin finding your new home today: +65 8809 2889!

That’s all for this article! Stay safe, and remember, call Home Quarters and start packing!




When should I sell my HDB flat? ›

If so, 2022 may be a good year to consider upgrading to a larger space at home with more space for everyone! With a relatively strong HDB resale market, it is most definitely a good sign to sell and lock in the cash profits to channel into either an older and bigger HDB resale or private property.

Should I sell my HDB after 5 years? ›

The MOP is usually 5 years for most HDB properties including Executive Condominiums. Until you have reached this MOP, you are obliged not to sell your property on the open market or rent out the entire unit. Additionally, HDB property owners cannot buy private residential properties before reaching this MOP.

Can you profit from BTO? ›

Build-To-Order (BTO) flats first started in 2001 as a way to introduce affordable new flats at a subsidised price to Singaporeans. These flats are often sold at a “discounted” price which makes it a good opportunity to buy and profit later.

Is it a good time to sell property in Singapore? ›

Best time to sell your property based on historical statistics. Sale transactions typically peak during the second and third quarter of the calendar year. As seen from figure 1, there is generally a higher volume of resale HDBs transacted in the second half of the year, compared to the first half of the year.

How long should you stay in a property before selling? ›

As a REALTOR® might tell you, in order to make up for closing costs, real estate agent fees, and mortgage interest, you should plan to stay in a property for at least 5 years before you sell your home.

How long should you live in a flat before selling? ›

A rough guide is that you normally have to live in your home for six months before you sell it — if a mortgage is involved. But if you have an interested buyer and you paid cash, you may be able to move more quickly.

What if I sell my flat after 55 years old? ›

If you're 55 years and above

Upon selling your property, you will need to refund to your CPF savings: the principal amount (P) you've withdrawn to pay for the property; the accrued interest (I); and.

What happens when you sell a house and make a profit? ›

If you owned and lived in the home for a total of two of the five years before the sale, then up to $250,000 of profit is tax-free (or up to $500,000 if you are married and file a joint return). If your profit exceeds the $250,000 or $500,000 limit, the excess is typically reported as a capital gain on Schedule D.

What happens if valuation is higher than offer HDB? ›

price agreed on is higher than the market valuation, buyers will have to pay the difference in cash. Whether you're currently planning to buy or sell your HDB flat, or are thinking about doing so in the future, you've come to the right place. We have compiled answers to some of the questions that pop up in your mind.

Are BTOs still profitable? ›

In general, BTO profits have fallen over time from a high of 291% and 232% returns to around 113% and 72% for a 3 and 4-room flat respectively.

How much should I earn for BTO? ›

Conversely, the most expensive BTO flat available – the 5-room in a mature estate – will require a salary of $3,700 to afford, and at this income level, the household would only qualify for only $20,000 EHG, much lesser than the $80,000 maximum available.

How much should I give up BTO? ›

You Have Signed The Lease Agreement

At this stage, if you choose to cancel your BTO application, the cost would be higher. You would forfeit 5% of the purchase price. While the legal fees paid are non-refundable, you may apply to IRAS to refund the stamp duty via HDB or your solicitor.

Will Singapore property price drop in 2023? ›

We expect overall private home prices to rise by about 9 per cent for 2022 following last year's 10.6 per cent growth, with a further moderation to 1 to 3 per cent growth for 2023.

Is it a good time to sell property in Singapore 2022? ›

Supported by strong underlying demand, we do not expect HDB resale prices to decline significantly; the cooling measures will ensure a more sustainable pace of price growth. For the full-year 2022, we forecast that overall HDB resale prices could rise by 9% to 10% - slowing from the 12.7% growth in 2021.

Will Singapore property prices drop 2022? ›

In a flash estimate done by the URA, prices of private residential properties have increased by 3.8% in Q3 of 2022. This is in contrast to a 3.2% increase in Q2 and a 0.7% increase in Q1 2022.

Why should you stay in a house for 5 years? ›

In real estate, this calls to mind the five-year rule, which states that new homeowners should generally stay put for at least five years before selling their property — or risk losing money. The reason is that closing costs and real estate commissions will consume 7 to 15 percent of the cost of the house.

How long can you hold profit from selling a house? ›

The law allows what is known as a 1031 exchange, which allows you to buy new property with the proceeds of your sale. In order to do this, you have to close on a new property within 180 days after you close the sale on your old property. As long as you do this, you can avoid the tax hit.

What should you not do before selling your house? ›

8 top home selling mistakes you should avoid
  1. Underestimating the costs of selling. ...
  2. Setting an unrealistic price. ...
  3. Only considering the highest offer. ...
  4. Ignoring major repairs and making costly renovations. ...
  5. Not preparing your home for sale. ...
  6. Choosing the wrong agent or the wrong way to sell. ...
  7. Limiting showings.

Is it worth buying a house for 5 years? ›

In general, it's best to buy when you have your eye on the horizon and you're thinking long-term. Experts largely agree that you shouldn't own unless you plan on staying in the home for at least five years. That's because, thanks to their high start-up costs, houses don't usually make great short-term investments.

How long do you have to live in a house to avoid capital gains? ›

You'll need to show that: You owned the home for at least two years. You lived in the property as the primary residence for at least two out of the five years immediately preceding the sale.

How early is too early to sell your house? ›

Basically, it says you should never even consider selling until you've lived in the home for at least five years.

How many times can I withdraw from CPF after 55? ›

You can make as many withdrawals as you like from your withdrawable savings. So there's no need to take everything in one go.

Will I lose my aged pension if I sell my house? ›

Is my home considered an asset? Your home is not counted as an asset when calculating pension or payment, but it does affect how your pension or payment is assessed under the assets test. If you are a homeowner your asset value limit is lower than someone who does not own their residence.

Should I buy a house after 55 years old? ›

Buying a home after 55 is a major decision that is sure to impact your retirement. While some financial companies will give out loans to older buyers, most are wary of this for several reasons. According to personal finance expert David Ning, it's unwise to get a new 30-year fixed mortgage in your 50s.

How do I avoid paying taxes on profit from selling a house? ›

Home sales can be tax free as long as the condition of the sale meets certain criteria: The seller must have owned the home and used it as their principal residence for two out of the last five years (up to the date of closing). The two years do not have to be consecutive to qualify.

How can I get the most profit from selling my house? ›

How to sell your house for the most money
  1. Understand your local market.
  2. Choose the right time to sell.
  3. Set the right price.
  4. Understand how much it really costs to sell a home.
  5. Determine how you're going to sell.
  6. Consider minor renovations that add value at minimal cost.
  7. Negotiate the best offer – not just the highest offer.

How do you avoid taxes on real estate profits? ›

7 ways to avoid taxes on a home sale
  1. Live in the house for two years. ...
  2. Moving due to military service. ...
  3. Look for exceptions. ...
  4. Keep track of home improvements. ...
  5. Use a 1031 exchange. ...
  6. Installment sale. ...
  7. Offset with capital losses.
25 Aug 2022

What devalues a house valuation? ›

Traffic and noise pollution

So, if your property is on a busy through-route or has a train or Overground line running close to it, it could affect its value due to increased noise and vehicle pollution. It's very much a case of being 'close' but 'not too close...'

How do you beat a higher offer on a house? ›

  1. Make an Offer Above the Home's Asking Price.
  2. Connect With the Seller.
  3. Work With a Qualified Agent.
  4. Use an Escalation Clause.
  5. Offer To Cover an Appraisal Gap.
  6. Be Flexible With the Closing Date.
  7. Don't Ask the Seller for Too Much.
  8. Pay for the House All in Cash.
9 Jun 2022

What do valuers look for when valuing a house Singapore? ›

Property valuation in Singapore affects two major factors — the loan quantum and property stamp duties. The loan quantum refers to the maximum loan you can take out to buy the property. It's best to keep an eye on it as it tends to decrease when the valuation of the property drops.

Is it better to buy BTO or resale flat? ›

Future Market Value

BTO flats tend to fetch better resale value after its Minimum Occupancy Period (MOP) as compared to resale flats.

Is BTO better than resale? ›

A BTO with a fresh 99-year lease is more ideal for raising a family, and can usually sell quite easily upon reaching its MOP, given that they have more years left on their lease than their resale counterparts.

How do I increase my BTO chance? ›

How Does the HDB BTO Balloting System Work?
  1. Queue Numbers Are Assigned Randomly. ...
  2. First-Timers Get Double The Chances. ...
  3. Get Additional Chances After Multiple Unsuccessful Attempts in Non-mature Estates. ...
  4. Consider the Racial Quota/Ethnic Integration Policy (EIP)

Is 2 room Flexi worth it? ›

One of the best things about 2-room Flexi flats is that they are cheaper than larger flat types, and can thus be an economical way for singles and couples to purchase a home. However, some may prefer to get an HDB resale flat instead, due to the long BTO construction waiting times.

What HDB can I afford with my salary? ›

3-3-5 Rule Of Buying An HDB Flat: How Much Can Singaporeans Really Afford?
  • The 3-3-5 Rule.
  • Pay 30% Of The Property Price.
  • Monthly Mortgage Servicing Of The Property Should Not Exceed 1/3 Of Your Monthly Salary.
  • Total Purchase Price Of The Property Should Not Exceed 5x Your Annual Income.
29 Mar 2022

How much CPF is enough for BTO? ›

The remaining 10% is the required down payment which you can use your CPF Ordinary Account (OA) savings to pay for in full. The LTV for a bank loan is 75% of the flat's value. You are required to pay at least 5% in cash. The remaining 20% can be paid through a combination of cash and your CPF OA savings.

What happens to BTO if partner dies? ›

Demise of joint-owner

When the joint-owner passes away, their share in the interest of the flat will be transferred to the remaining owners. As the remaining family member or single occupier, you can take sole possession of the flat provided you are: a Singaporean Citizen (SC) or Singapore Permanent Resident (SPR)

How is BTO income calculated? ›

Let's say you earned $3,000 the month before your BTO application, $3,500 the month before that, and $4,000 the month before that. Your gross monthly income would be ($3,000 + $3,500 + $4,000) / 3 = $3,500. For salaried employees with a fixed wage, HDB will use your last-drawn pay when working out your income.

Do you pay resale levy for BTO? ›

If you bought a subsidised flat from HDB (i.e. HDB Build-To-Order (BTO) or Sales of Balance (SBF) flat) or an executive condominium (EC) from a developer in the past, or received a CPF Housing Grant, you will have to pay a resale levy when buying another subsidised flat.

Will house prices go up in 2024? ›

A new report from Moody's Analytics forecasts that — given increased borrowing costs, elevated inflation, and a softening labour market — home prices will see a peak-to-trough decline of about 10% by early 2024.

Will house prices fall in 2022 2023? ›

BENGALURU, Dec 15 (Reuters) - House prices in most major property markets will fall in 2023, according to nearly 100 housing market analysts polled by Reuters, but they predicted double-digit peak-to-trough declines will not come close to making them affordable.

Will 2023 be a better year to buy a house? ›

Mortgage rates are sky-high, inventory is low, and prices are still elevated from their pandemic spikes—making it a less than ideal time to buy. “Homebuyers and renters hoping for some financial relief in 2023 will likely be disappointed,” writes Clare Trapasso for Realtor.com.

Is it wise to sell your house in 2022? ›

Housing Supply is Super Low in 2022

As a result, the U.S. is still short of around three million homes to meet the current demand. This makes 2022 a good time to sell your home before the recession causes a drop in demand.

Is 2022 a good time to buy or sell a house? ›

2022 is still a seller's market if you're looking to take advantage – but it's important to note that the market is not as competitive as it was in 2021. You may have heard stories about sellers able to find buyers to take their home as-is, or in some cases, even without an inspection in 2021.

Will 2022 be a good time to sell? ›

According to data from Redfin, 59.2% of homes sold above list price in May 2022. This is a 16.7% increase since January of the same year. Home prices also tend to skyrocket as early as March to keep up with the high demand from homebuyers.

Will flat prices go down in 2022? ›

Further rate rises are expected throughout 2022, which could seriously dampen the housing market because it means mortgage repayments will increase. The cost of living crisis is likely to be the biggest cause of a slowdown in the housing market.

Will property prices drop in 2024 Singapore? ›

And according to Trading Economics' forecasting service, as of 6 October, Singapore's house price index was projected to hit 193 points in 2023 and 197 in 2024. That would represent 3.2% growth between Q2 2022 and the end of 2023, and 2.1% growth between 2023 and 2024.

Is 2022 a good year to invest in property? ›

If you're thinking long-term or are planning for retirement, buying an investment property to rent is still a good investment in 2022. And it can get even better if you shop around carefully for properties at a good value with strong rent returns.

Will HDB resale prices drop in 2022? ›

"For downgraders aged 55 and up, they may still purchase a four-room and smaller HDB flat without restrictions, so some demand may flow to four-room flats and push up prices," said Mr Lee, adding that he expects the overall HDB resale price gain for the whole of 2022 to be no more than 10 per cent.

Will HDB price drop further? ›

With the new cooling measures being implemented on the 30th September, HDB Resale Prices are expected to fall in the last quarter of 2022.

What happens when you sell your HDB after 55? ›

If you're 55 years and above

Upon selling your property, you will need to refund to your CPF savings: the principal amount (P) you've withdrawn to pay for the property; the accrued interest (I); and.

Will 2022 be a good time to sell a house? ›

According to data from Redfin, 59.2% of homes sold above list price in May 2022. This is a 16.7% increase since January of the same year. Home prices also tend to skyrocket as early as March to keep up with the high demand from homebuyers.

What is the slowest month to sell a house? ›

Sellers can net thousands of dollars more if they sell during the peak months of May, June, and July versus the two slowest months of the year, October and December, according to a 2022 report by ATTOM Data Solutions.

What is the fastest time to sell a house? ›

  • Is 3 months a long time for a house to be on the market? ...
  • The timeline for selling a house:
  • Choosing an estate agent – a few weeks. ...
  • Viewings – 1->14 weeks. ...
  • Accepting an offer to property searches – 5 weeks. ...
  • Searches to exchange – 8 weeks. ...
  • Exchange to completion – Average of 2 weeks, could take up to 4.

Is buying flat a good investment 2022? ›

As a result the purchase rate has been down. Owing to these reasons and more the prices of the real estate properties have been all time low. Considering this aspect the year 2022 can be considered to be one of the most favorable times to invest in the real estate industry.

Do HDB flats on lower floors have poorer resale value? ›

Flats on “Very Low” floors do not necessarily lose out to flats on higher floor ranges in terms of PSF appreciation. Flats on “Very Low” floors displayed a slower rate of PSF decline compared to flats on higher floors, especially as the age of the flat increased.

What happens if HDB valuation is higher than offer? ›

price agreed on is higher than the market valuation, buyers will have to pay the difference in cash. Whether you're currently planning to buy or sell your HDB flat, or are thinking about doing so in the future, you've come to the right place. We have compiled answers to some of the questions that pop up in your mind.


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