by OrangeTee & Tie Pte Ltd.

Hot HDB resale market, higher building costs pushing top range BTO prices closer to million-dollars

SRX HDB Resale Data

Singapore, 23 Sep 2022

On the rise since 2015, prices of Build-to-Order (BTO) flats have picked up pace over the last three years in light of a hot Housing and Development Board (HDB) flat resale market, growing construction costs and more BTO project launches in pricier, central areas. 

It is only “a matter of time” before Singapore sees its first million-dollar BTO flat, property analysts told TODAY, although this is unlikely anytime soon and is contingent on how long the Government wants to keep BTO prices below market value with subsidies.

As the valuation of BTO flats is tied to the prices of surrounding resale flats, the price of BTOs rises in tandem with the resale market, said Ms Christine Sun, the head of research and consultancy at property firm OrangeTee & Tie Research & Analytics.

Ms Sun said that BTO prices could breach that mark if S$1 million resale flat transactions, currently a small minority of overall resale transactions, become the norm. She added that she expects BTO prices to hover around the S$700,000 to S$900,000 range in the next few years instead.

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