Many Singaporeans are familiar with Build-To-Order (BTO) flats, but fewer are aware of the Sale of Balance Flats (SBF) and Open Booking schemes, which can offer faster alternatives for securing a home. If you’re struggling with long BTO wait times or missed out on previous launches, these options might be a good fit.
While the BTO process is well-documented, SBF and Open Booking can be less straightforward. This guide breaks down what you need to know about these options, including their pros and cons, application processes, and financing considerations, so you can make an informed decision.
Understanding HDB SBF & Open Booking
What Is a Sale of Balance Flat (SBF)?
SBF flats are leftover units from past BTO launches, repurchased flats, or units returned to HDB for various reasons. Since 2025, there has been only one SBF exercise per year, giving buyers access to a wider selection of available flats across different estates.
For example, the February 2025 SBF exercise had 5,590 available flats, with around 40% already completed. This means many buyers could move in almost immediately, avoiding the typical 4-7 year wait associated with BTO flats.
Why Choose an SBF Flat Over a BTO?
BTO flats often come with limited location choices and long waiting times. In contrast, SBF flats provide an opportunity to secure a home much faster.
Pros and Cons of SBF Flats
Pros | Cons |
More location choices – Flats come from past BTO launches, offering a wider range of locations. | Lower chances of securing a unit – Demand is high, and success isn’t guaranteed. |
Shorter waiting time – Some units are already built, allowing for a faster move-in process. | Fewer unit options – Popular choices, such as high-floor or corner units, may already be taken. |
Better chance to gauge success – The Ethnic Integration Policy (EIP) allows applicants to check unit availability based on their ethnic group. | Potentially higher cost – Prices are not discounted, and some units may cost more than their original BTO prices. |
Since SBF applications are only open for a short period (typically one week), applicants must choose between applying for a BTO or an SBF flat within the same launch window.
SBF vs. Open Booking of Flats
HDB’s Open Booking system allows buyers to apply for unsold flats from past SBF launches at any time of the year, offering a more flexible alternative for those in urgent need of a home.
Key Differences Between SBF and Open Booking
Feature | Sale of Balance Flats (SBF) | Open Booking of Flats |
Availability | Once a year (e.g., Feb 2025) | Open year-round |
Application Period | One-week window | Anytime |
Flat Types | Leftover flats from past BTO launches, repurchased units | Leftover SBF flats |
Number of Units | Typically 1,000+ (Feb 2025 had 5,590) | Limited stock (often fewer than 100 units at a time) |
Locations | Spread across mature and non-mature estates | Limited locations, based on remaining stock |
Ethnic Quota | More options for different ethnic groups | Fewer choices due to smaller stock |
Open Booking is ideal for buyers who want to move in quickly and are flexible about location and flat type. Successful applicants may be invited to select a flat within just a few days of application.
How to Apply for SBF & Open Booking Flats
Applying for Sale of Balance Flats (SBF)
- Check Eligibility – Ensure you meet the criteria, such as citizenship, family nucleus, and income limits.
- Wait for the Launch – HDB announces SBF exercises once a year.
- Submit Your Application – Apply through the HDB website during the application period.
- Balloting Process – If demand exceeds supply, a ballot determines the order of flat selection.
- Select a Flat – Successful applicants will be invited to book a unit.
- Secure Financing & Sign Agreements – Arrange financing, pay the downpayment, and sign the necessary agreements.
Applying for Open Booking Flats
- Monitor the HDB Open Booking System – Available flats are updated periodically.
- Submit Your Application Anytime – There’s no need to wait for a launch.
- Receive an Immediate Queue Number – If successful, flat selection may happen the next working day.
- Complete the Purchase Process – Select a unit, secure financing, and finalize agreements.
Financing Your Purchase: HDB Loan vs. Bank Loan
Choosing between an HDB loan and a bank loan is one of the most important financial decisions when purchasing a flat. Here’s how they compare:
Feature | HDB Loan | Bank Loan |
Downpayment | 20% (can be paid using CPF) | 25% (5% in cash, 20% can be CPF) |
Interest Rate | 2.6% (fixed) | Varies (often lower than HDB loan rates) |
Early Repayment Penalty | None | Yes, in some cases |
Loan-to-Value (LTV) Ratio | Up to 80% | Up to 75% |
Flexibility | More lenient eligibility criteria | Stricter approval process |
An HDB loan may be easier to manage due to its lower upfront cost and fixed interest rate, making budgeting more predictable. However, bank loans often have lower interest rates, which can lead to savings in the long run.
Conclusion
SBF and Open Booking provide valuable alternatives for homebuyers who want to avoid the long wait for a BTO flat. While the SBF route is competitive and only available once a year, Open Booking offers an ongoing chance to secure a flat quickly, provided you’re flexible with location and flat options.
To maximize your chances of success, keep track of HDB announcements, plan ahead, and assess your financial situation carefully. By understanding the key differences between these schemes, you can make a well-informed decision and secure a home that fits your needs sooner rather than later.
Ready to take control of your financial future?
Consider scheduling a financial health check with a Financial Advisor. Whether you’re just starting your financial journey or looking to optimize your existing plan, a Financial Advisor can provide personalized guidance tailored to your unique goals and circumstances.