Prices for HDB resale flats are at an 8-year high due to a combination of factors. This includes the strong demand for space in this new Work-From-Home (WFH) environment and the delay in the expected completion dates for new Built-To-Order (BTO) HDB projects due to manpower shortages induced by the COVID-19 restrictions.
A solution to this problem is HDB’s open booking of flats. The scheme was devised in June 2019 to allow more home buyers to move into their flats earlier. The latest round of open booking will commence on 23 March 2022, 12am.
In our previous article, we covered what you need to know about HDB’s open booking of flats and how you may apply for it.
In this article, we reveal how much cheaper you can get an HDB flat through the open booking system compared to buying a similar HDB unit from the open resale market.
We crunched the numbers and discovered that applicants could potentially save up to $300,000 on some of these units that are available for selection.
Read on to find out which estates give you the best value in this round of open booking.
Open Booking Price Reference Guide
We want to find out whether the flats that are available for open booking are cheaper than HDB flats in the open market. And if so, what is the price difference between the two?
To calculate the difference in price, we will be comparing the open booking price with the available past year’s transacted prices of similar-sized units from the same block, where possible.
The price difference between the open booking price and the resale prices equates to the discount that an applicant may potentially receive.
Additionally, for the block(s) without any transactions for the past year, we will use the transacted prices of similar-sized units in the neighbouring blocks. We will indicate those details with an asterisk sign (*). Likewise, for estates without any transactions due to either being under construction or being within a minimum occupation period (MOP), we will indicate them with a hash sign (#).
Lastly, we have also excluded the 2-room Flexi- and 3-room flats with an income ceiling of $7,000 from our price reference guide. We have excluded these units as their buyer-profiles may be different from those of the other HDB flats.
| No | Town / Location | Flat Type | Ethnic Quota | Open Booking Price | Resale Price (Past 1 Yr) | Price Difference |
| Non-Mature | ||||||
| 1 | Bukit Panjang 226 Pending Road |
4-room | All | $215,000 | $335,000 – $390,000 | $120,000 – $175,000 |
| 2 | Jurong West 513 Jurong West 52 |
4-room | All | $315,000 | *$433,000 – $520,000 | $115,000 – $205,000 |
| 3 | Jurong West 628 Jurong West St 65 |
Executive | All | $470,000 | *$530,000 – $660,000 | $60,000 – $190,000 |
| 4 | Sembawang 333 Sembawang Close |
Executive | Malay And Chinese | $430,000 | $600,000 $625,000 | $170,000 – $195,000 |
| 5 | Woodlands 125 Marsiling Rise |
3-room | Chinese only | $164,000 | $290,000 – $300,000 | $126,000 – $136,000 |
| No | Town / Location | Flat Type | Ethnic Quota | Open Booking Price | Resale Price (Past 1 Yr) | Price Difference |
| Mature | ||||||
| 6 | Ang Mo Kio 229 AMK Ave 3 |
4-room | Malay only | $251,700 | $436,000 – $450,000 | $184,300 – $198,300 |
| 7 | Ang Mo Kio 312 AMK Ave 3 |
5-room | All | $537,000 | $578,000 – $748,000 | $41,000 – $211,000 |
| 8 | Ang Mo Kio 459 AMK Ave 10 |
5-room | Malay only | $424,600 | $500,000 – $600,000 | $75,400 – $175,400 |
| 9 | Ang Mo Kio 504 AMK Ave 8 |
3-room | Malay only | $191,000 | $310,000 – $365,000 | $119,000 – $174,000 |
| 10 | Ang Mo Kio 596C AMK St 52 |
4-room | Malay & Indian | $471,000 | $652,000 | $181,000 |
| 11 | Bedok 540 Bedok North St 3 |
Executive | Chinese and Indian | $590,000 | #No data | Nil |
| 12 | Bishan 22 Sin Ming Road |
3-room | All | $169,000 | $260,000 – $310,000 | $91,000 – $141,000 |
| 13 | Bishan 287 Bishan St 24 |
4-room | Malay and Indian | $441,700 | *$605,000 – $750,000 | $163,300 – $308,300 |
| 14 | Clementi 301 Clementi Ave 4 |
4-room | Malay and Indian | $281,000 | $453,000 – $515,000 | $172,000 – $234,000 |
| 15 | Clementi 445A Clementi Ave 3 |
4-room | Malay and Indian | $600,000 | #No data / BTO | Nil |
| 16 | Geylang 36 Cassia Crescent |
3-room | Malay and Indian | $289,000 | $358,888 – $430,000
|
$69,888 – $141,000 |
| 17 | Geylang 63 Sims Place |
3-room | Malay and Indian | $306,000 | $490,000 – $580,000 | $184,000 – $274,000 |
| 18 | Geylang 87 Circuit Road |
3-room | Malay and Indian | $159,000 | $250,000 – $263,000 | $91,000 –$104,000 |
| 19 | Geylang 356A Ubi Road 3 |
4-room | Malay and Indian | $531,000 | #No Data | Nil |
| 20 | Geylang 357B Ubi Road 3 |
4-room | Malay and Indian | $534,000 | #No Data / BTO | Nil |
| 21 | Geylang 37C Eunos Road 2 |
4-room | Malay and Indian | $609,000 | #No Data | Nil |
| 22 | Kallang/Whampoa 15 Farrer Park Road |
3-room | Malay and Indian | $351,000 | $488,000 – $548,000 | $137,000 – $197,000 |
| 23 | Kallang/Whampoa 112 Lorong 3 Geylang |
4-room | Malay and Indian | $404,000 | #No Data | Nil |
| 24 | Pasir Ris 580 Pasir Ris St 53 |
Executive | All | $650,000 | $700,000 – $800,000 | $50,000 – $150,000 |
| 25 | Pasir Ris 530D Pasir Ris Drive 1 |
4-room | All | $558,000 | #No Data | Nil |
| 26 | Queenstown 8 Ghim Moh Road |
5-room | Malay and Indian | $549,000 | $658,000 – $865,000 | $109,000 – $316,000 |
| 27 | Queenstown 8 Holland Avenue |
3-room | Malay and Indian | $233,000 | $307,000 – $380,000 | $74,000 – $147,000 |
| 28 | Queenstown 9 Holland Avenue |
3-room | Malay and Indian | $319,000 | $335,000 – $455,000 | $16,000 – $136,000 |
| 29 | Queenstown 29 Ghim Moh Link |
4-room | Malay and Indian | $585,000 | #No data / BTO | Nil |
| 30 | Queenstown 32 Holland Close |
3-room | Malay and Indian | $204,000 | $300,000 – $395,000 | $96,000 – $191,000 |
| 31 | Queenstown 18D Holland Drive |
4-room | Malay and Indian | $718,000 | $880,000 – $970,000 | $162,000 – $252,000 |
| 32 | Queenstown 43A Strathmore Avenue |
4-room | Malay and Indian | $603,000 | #No data / BTO | Nil |
| 33 | Tampines 281 Tampines St 22 |
4-room | Chinese and Indian | $275,000 | $465,000 | $190,000 |
| 34 | Tampines 871A Tampines St 84 |
4-room | Chinese and Indian | $335,000 | $475,000 | $140,000 |
| 35 | Toa Payoh 228 Lorong 8 Toa Payoh |
4-room | Malay and Indian | $265,000 | $333,888 | $68,888 |
| 36 | Toa Payoh 268A TPY East |
4-room | Malay and Indian | $418,000 | #No data / BTO | Nil |
| 37 | Toa Payoh 269A TPY East |
4-room | Malay and Indian | $398,000 | #No data / BTO | Nil |
| 38 | Toa Payoh 270A TPY East |
4-room | Malay and Indian | $427,000 | #No data / BTO | Nil |
| 39 | Toa Payoh 402A Lorong 1 TPY |
3-room | Malay and Indian | $375,000 | #No data / BTO | Nil |
| 40 | Toa Payoh 403B Lorong 1 TPY |
4-room | Malay and Indian | $537,000 | #No data / BTO | Nil |
*No past one-year transaction for the block, so transactions for neighbouring blocks were used.
#No resale data for the block or estate.
According to our calculations, the prices of resale flats available through open booking can range from $16,000 to $316,000 less than those bought from the open market. On average, the open booking of flats yields has an estimated discount of around $150,000.
Smallest Discount: 9 Holland Avenue, it is a 3-room HDB flat that has a price difference of around $16,000 and $136,000 compared to the open market.
Biggest Discount: 8 Ghim Moh Road; It is a 5-room HDB flat that has a price difference of around $109,000 to $316,000 compared to the open market.
Example: Buyer in a Non-Mature Town
In our first example, we take a look at the price difference an applicant stands to get at a non-mature town.
An applicant choosing to get an executive flat in a non-mature estate has two choices between Sembawang Close and Jurong West Street 65.
Between these two options, only the Jurong West flat is applicable to all ethnic buyers, whereas only Malay and Chinese applicants are eligible for the Sembawang Close flat.
Let us assume that an applicant decides on the Sembawang Close flat.
Based on HDB’s past year’s records, three units transacted between $600,000 and $625,000 for block 333 Sembawang Close. This is the price range that a buyer on the resale market can expect to pay for a similar-sized flat at this block.
However, the second-floor unit is now available for open booking at $430,000. This translates to a savings or price difference of around $170,000 to $195,000.
Example – Buyer in a Mature Town
In our second example, we examine the price difference for a flat in a mature estate. We assume that the applicant belongs to a minority race and wants to stay in a 4-room flat in Bishan.
In this case, only one 4-room flat is available for selection, and it is located at 287 Bishan Street 24. As there have been no transactions for block 287 for the past year, we take reference from the price transactions of the neighbouring blocks within the estate.
Looking at the size of the flat (103 sqm), two similar-sized units transacted at blocks 289 and 288 between $605,000 and $750,000, respectively.
This translates to a price difference of around $163,300 to $308,300 that the applicant can get from the open booking.
Other Factors To Consider When Choosing Between Open Booking Versus Open Market Buying
Aside from looking at the price discount that you can get from an open booking flat, you should also consider the following factors.
Choice Of HDB Flats Are Limited
Homebuyers may have a preferred location. This could be like staying close to parents, educational institutions, or amenities.
However, under the open booking system, applicants can only choose based on a limited pool of units, which may not be suitable for their needs or requirements. Additionally, the competition for each of these units could be higher than BTO flats as it is based on a first-come-first-serve basis, making the chance of being successful rather slim.
Read Also: Buying A Resale HDB Flat Without Govt Grants As Your First Home In Singapore. Does It Make Sense?
Condition Of The Flat May Be Unknown
Applicants may not have the opportunity to view the condition of the HDB flats before they select the units through open booking. This is unlike buying a resale flat from the open market, where the buyer (with the seller’s permission) can view the flat more than once, including at various times of the day to get a better feel for the unit they intend to purchase.
As there is no clear indication of how HDB prices the flats on the open booking platform, we can only assume HDB’s valuers have also priced them based on the living condition of the flat. Therefore, when a buyer gets a substantial price difference for a unit compared to the resale market, it could possibly mean an extensive renovation is required.
Lesser Housing Grants Compared To Resale Flats
Under the open booking system, first-time applicants may be ineligible for the Family Grant (up to $50,000) and the Proximity Grant (up to $30,000), which they would be if they purchased a resale flat on the open market.
This can be an important factor for eligible buyers as they can use this additional grant amount to offset their downpayment.
Therefore, first-time applicants should see whether the additional grants for which they are eligible are bigger than the price difference they get from open booking versus buying from the open market. This will help them to make a more informed decision by weighing the pros and cons of choosing a flat through an open booking.
Read Also: Complete Guide To HDB Housing Grants In Singapore For Different Types Of Flats
Same Ethnic Integration Policy (Racial Quota) Apply
Applicants will not gain any advantage over the ethnic integration policy (EIP) or racial quota that is applicable for the block, whether they buy from the open booking or the open market, as the same restrictive covenants apply.
We have seen from the price guide that there can be a substantial price difference between getting an HDB flat through the open booking system.
At the same time, we should also take into consideration the other factors when determining if the property purchase through open booking is the right option for us.
For most of us, our home purchase may be the largest investment that we might undertake. Therefore, we should evaluate the choices that are available to us carefully before committing to a property purchase.
With that, good luck on your open booking!
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