First-time homebuyers who cannot wait four to five years for a Build-To-Order (BTO) flat or afford the continually rising prices of resale HDB flats (which saw a 10.7% increase in Q3 2022) can consider participating in the upcoming Sale of Balance Flats (SBF) exercise or applying for units through the Open Booking of Flats to speed up their home-buying process.
The 2022 Sale of Balance Flats exercise is definitely an ideal choice for young couples hoping to quickly secure their own affordable housing in Singapore. However, competition for the SBF exercise is fierce, with the success rate dropping from 52% in 2017 to 17% in 2021. Meanwhile, the success rate for the Open Booking of Flats has also decreased, from 100% when it was first launched in 2019 to 65% in 2021.
This article will explain what the Sale of Balance Flats exercise is, and how it differs from BTO and Open Booking of Flats. It will also cover its eligibility criteria and application process.
Table of Contents
What is the Sale of Balance Flats (HDB SBF)?
The Sale of Balance Flats scheme is essentially an exercise that pools together unsold units, including those from past BTO launches, remaining flats from Selective En bloc Redevelopment Scheme (SERS) projects, and any repurchased flats.
The SBF exercise is conducted twice a year, usually in May and November, alongside BTO launches.
Number of SBF Units Launched from November 2020 to Date
| November 2022 | To be confirmed |
| May 2022 | 1,952 |
| November 2021 | 1,798 |
| May 2021 | 2,494 |
| November 2020 | 5,220 |
What Happens to Unselected Sale of Balance Flats?
Previously, all unsold flats would first be offered through the Re-offer of Balance Flats (ROF) exercise. If these units were still not taken up, they would be made available for open booking. However, in March 2020, the government announced the cancellation of the ROF scheme to speed up the home-buying process.
With the cancellation of the ROF exercise, all unsold BTO units will first be offered in the SBF exercise. If they remain unselected, these flats will be made available through the Open Booking of Flats.
These units are offered as Open Booking of Flats on a first-come, first-served basis. This means once all the flats are booked, they are gone.
Currently, all flats available under Open Booking have been booked. New units will be available for viewing in March 2023, and the start date for online applications has not yet been announced, so please stay tuned.
We have compared the main differences between SBF and Open Booking of Flats and summarized the key points in the table below.
| Name | HDB SBF flats | Open Booking of Flats |
| When Available | Twice a year, usually in May and November | According to HDB announcements, new units will be available for viewing in March 2023 |
| Units Offered | Remaining units from BTO launches | Remaining units from SBF exercises |
| Number of Units Offered | Varies, usually around 3,000 | Varies, usually fewer than 300 |
| Application Period | One week | Open all year round (ends after all available units are booked) |
| Unit Types | Most unit types are available | Limited choice of unit sizes |
| Ethnic Quota | Relatively well-distributed among different ethnic groups | Usually a smaller number of units available for other buyers |
What is the Difference Between BTO and SBF Flats?
1. Shorter Waiting Time for SBF Units
The main difference between BTO and SBF flats is the waiting time, with completed units having a shorter wait.
Since BTO projects only begin construction after at least 70% of the flats are booked, the waiting time is typically about three to four years, resulting in a longer home-buying cycle. With construction delays, projects launched in 2020 and 2021 are estimated to have a waiting period of between three to five and a half years.
In contrast, the SBF exercise sells remaining units from projects that are either under construction or already completed (ready for move-in). Therefore, the time to collect the keys is much shorter.
This is particularly important for young couples who do not want to postpone their marriage due to a lack of housing, or who do not want to spend money on rent while waiting for their BTO flat to be completed. Single-parent families, engaged couples, and the elderly will also benefit from the shorter waiting times.
In the November 2022 BTO sales exercise, buyers in need can look forward to opportunities to purchase flats in Bukit Batok, Kallang/Whampoa, Queenstown, Tengah, and Yishun. However, it’s important to note that you can only apply for one scheme at any given time. Therefore, if you plan to apply for a BTO project in the November 2022 launch, you cannot apply for an SBF project in the same period.
2. More Location Choices for SBF
Since the SBF exercise pools unsold flats from many different projects, these projects are located in both mature and non-mature estates in Singapore. Although the total number of SBF units available for sale is smaller, the choice of projects and locations is more diverse.
3. It’s Less Likely to Get Your Preferred SBF Unit
When applying for a BTO flat, you generally have the chance to pick the best units. However, the situation is different when applying for an SBF flat.
As the available SBF units are “leftovers” from previous sales exercises, these units are sometimes unpopular with previous buyers due to poor locations. For example, lower-floor units near the centralized rubbish chute, west-facing units, or units with obstructed views.
That being said, this is not the case for every SBF unit. Some good units end up in the SBF pool, possibly because previous buyers were too picky, could not afford them, or had to give up their application for other reasons such as divorce. Therefore, if you are lucky, you might be able to buy a unit that is perfectly ideal.
4. More Information Available for SBF than BTO Flats
Another advantage of the SBF scheme is that HDB provides all the information, down to the last detail.
In addition to the location, type, unit size, and map (which are provided in BTO sales), HDB will also provide the block, unit number, and ethnic quota when you apply.
5. SBF Flats are Slightly More Expensive than BTO Flats
Although the government also provides subsidies for SBF sales, they are slightly more expensive than BTO flats. However, their cost is still much lower compared to resale flats.
6. SBF Flats Must Adhere to the Ethnic Integration Policy (EIP)
Purchasing an SBF unit is subject to ethnic quota restrictions: certain ethnic groups may be restricted from buying, especially Chinese buyers.
7. SBF Units are Harder to Get
Compared to BTO flats, there are far fewer SBF units available, so the chances of securing one are slimmer.
If you wish to purchase an SBF unit, please refer to the following overview of eligibility criteria.
2022 Sale of Balance Flats Eligibility Criteria
| Eligible Applicant/Family Nucleus | You must qualify under one of HDB’s existing eligibility schemes: 1. Public Scheme 2. Fiancé/Fiancée Scheme 3. Orphans Scheme |
| Citizenship | At least one applicant must be a Singapore Citizen At least one other applicant must be a Singapore Citizen or Singapore Permanent Resident |
| Age | At least 21 years old |
| Income Ceiling | Must not exceed the income ceiling set for the flat you are applying for: Family: $14,000 Extended Family: $21,000 |
| Property Ownership | 1. Applicants and all other persons listed in the flat application must not own other property (overseas or locally) 2. Applicants must not have disposed of any property within the last 30 months 3. Applicants and all other persons listed in the flat application cannot invest in private residential property from the date of the flat application until the 5-year Minimum Occupation Period (MOP) is over 4. Applicants have never bought a new HDB, Design, Build and Sell Scheme (DBSS) flat, or Executive Condominium (EC), or received a CPF Housing Grant before 5. Or, applicants have only bought one such property before and have only received one CPF Housing Grant so far |
⚠️Please note that the above criteria apply if you are applying as a family nucleus or with your fiancé/fiancée/spouse.
Since 2020, unwed parents with stable employment and/or sufficient funds can purchase 2-room Flexi or 3-room flats in non-mature estates. If they have insufficient funds, they can also consider renting an HDB flat.
If you are a single person applying for an SBF for the first time, you need to meet the following conditions:
- Must be a Singapore Citizen
- Must be at least 35 years old if unmarried or divorced; at least 21 years old if widowed or an orphan
- Must meet the Ethnic Integration Policy (EIP) and Permanent Resident (PR) quota for the area of the unit (this is more likely to affect the location of the unit applied for)
- Household monthly income must not exceed $7,000
How to Buy a Sale of Balance Flat?
Here are the detailed steps on how to apply for an SBF unit:
1. Apply during the SBF Sales Launch
Once HDB announces the launch of unsold flats, you can submit your online application during the application period, as long as you meet all the eligibility criteria. Each exercise lasts for about a week, so you have ample time to make a decision.
2. Wait for the Results
After this, if your application is successful, you will be shortlisted via a computer ballot. The results are usually announced in about one and a half months.
If you are lucky and your queue number is short, your chances of getting the flat you really want will be much higher. You can check the distribution of non-elderly SBF flats in mature and non-mature estates on the HDB website to better seize your opportunity.
3. Sort Out Your Finances and Book a Flat with HDB
If you are one of the lucky ones to get an SBF unit, congratulations! You now need to sort out your finances to prepare for the purchase. If you are taking an HDB loan, you will need to apply for an HDB Loan Eligibility (HLE) letter. If you are taking a bank loan, you will need to apply for an Approval-in-Principle (AIP) loan agreement from the bank.
Then, based on your allocated queue number and unit availability, you will be invited to book a flat. When you go to the HDB Hub for your appointment, you will see your available units, and if you like one, you can book it on the spot. You will need to pay an option fee of $500, $1,000, or $2,000, depending on the size of the flat.
4. Collect Your Keys
For completed flats, you can collect your keys and move in within three months. For flats that are nearing completion, you can collect the keys as soon as the flat is ready.
Alternatives to the 2022 Sale of Balance Flats Exercise
As you can see, the SBF exercise offers the attractive prospect of getting a brand-new HDB flat with a shorter waiting time than a BTO flat, but the chances of a successful application can be slim. If you are in urgent need of housing, you can opt for a resale HDB flat.
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