Rising HDB Prices in 2025: How to Decide Between Buying Now, Waiting for a BTO, or Renting

There’s a line in When Harry Met Sally (1989), that goes: “When you realise you want to spend the rest of your life with somebody, you want the rest of your life to start as soon as possible.”

It’s the quote I used to end a speech at my friend’s wedding last year. Rewind 12 months, and that same friend had just reconnected with a girl he almost dated back in uni. This time, the stars aligned: they were both single, started dating, and before long, got engaged. He actually started house-hunting even before he proposed. They wanted to get married within the year, and he couldn’t imagine saying “I do” only to head back to separate bedrooms in their parents’ homes.

But in 2025, starting married life doesn’t just mean planning a wedding—it means racing against rising HDB prices. In the second quarter of 2025, median resale prices for 4-room flats crossed the million-dollar mark in 3 areas: the Central Area, Toa Payoh and Queenstown. A record 415 resale flats were sold for at least $1 million during that quarter alone. And by the end of 2025, HDB resale prices are on track to have risen for 23 consecutive quarters.

Rising resale prices and sky-high valuations are all reshaping the traditional “BTO and wait” playbook. If you’re a newlywed or newly engaged couple, this article is here to explain your options for your first home before affordability slips even further out of reach.

 

Buying a home in Singapore: Resale flat, BTO, or renting

1. What are your options?
2. Buying a BTO flat: Lower cost, longer wait
3. Buying a resale flat: Higher cost, shorter wait
4. Renting directly from HDB: Lower cost, harder to qualify
5. Renting on the open market: Flexible, but adds up
6. How to decide: Budget, grants, timeline
7. Conclusion

 

1. What are your options?

If you’re newly engaged or planning a wedding in 2025, there are 4 main ways to approach your first home:

1. Buy a BTO flat — more affordable, but comes with a long wait.
2. Buy a resale flat — move in sooner, but pay a higher price.
3. Rent directly from HDB — lower cost, but harder to qualify.
4. Rent on the open market — flexible, but costly month to month.

Each path has its trade-offs: timeline, cost, flexibility, and eligibility. In the next few sections, we’ll break them down to help you figure out what fits best for your relationship, your budget, and your next big move together.

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2. Buying a BTO flat: Lower cost, longer wait

Pros	Cons
Lower prices than resale	Long waiting time (3–5 years)
Eligible for highest CPF grants	Need interim housing (e.g. rent or live with family)
Brand new units with full 99-year lease	Choice is subject to ballot and availability
New projects often near upcoming amenities and transport links	Not guaranteed, especially for mature estates
Priority schemes boost chances for first-timer married couples	Fewer units in prime areas; popular towns see higher application rates

If you and your partner have time on your side, a Build-To-Order (BTO) flat might still be your most affordable option. BTOs are brand new, heavily subsidised, and come with the highest CPF housing grant eligibility—but they’re also the slowest route to homeownership, often requiring a 3–5 year wait.

In 2025, HDB plans to launch around 19,600 BTO flats across 3 sales exercises, including about 3,800 Shorter Waiting Time (SWT) units with wait times under 3 years. That’s a significant bump from previous years, giving couples a slightly faster shot at moving in. 

While BTO flats are generally more affordable than resale, they’re not guaranteed. Supply is still limited, and application rates can vary widely depending on location and flat type. That said, competition has cooled from pandemic-era peaks. The October 2024 BTO exercise drew over 35,600 applicants with an overall application rate of 4.16—down from 7.8 in August 2022. In comparison, the most recent Jul 2025 BTO launch saw median first-timer application rates for 4-room flats ranging from 1.2 to 6.7, depending on town and flat type.

The upcoming Oct 2025 BTO exercise will offer around 9,100 flats across 8 towns, including Ang Mo Kio, Bedok, Bishan, Bukit Merah, Jurong East, Sengkang, Toa Payoh and Yishun, a mix of more mature and newer estates. If you’re keen to give it a shot, you’ll need a valid HFE (Housing Eligibility) letter. HDB encourages couples to apply early and submit all required documents before 15 Sep 2025 if you want to be part of the October launch.

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3. Buying a resale flat: Higher cost, shorter wait

Pros	Cons
Eligible for multiple CPF grants to offset some costs	Higher purchase prices
Wider choice of locations, including mature estates	Lease decay in older flats can affect resale value and loan eligibility
Immediate move-in, no years-long wait	Renovation costs may be high for older flats

If you want to collect your keys as soon as you say “I do”, a resale HDB flat offers immediate move-in with no years-long wait. You’ll also have the freedom to choose from a wider range of estates, including mature towns closer to family or work, and you might find older flats with bigger layouts than today’s BTOs.

The trade-off? Price. I mean, there were a whopping 415 resale flats sold for at least $1 million in Q2 2025, and the median resale prices for 4-room flats in the Central Area, Toa Payoh, and Queenstown have exceeded the $1 million mark. Even outside prime zones, resale prices can be significantly higher than new BTO launches.

Housing grants can help offset some of the cost. First-timer couples buying resale may be eligible for these grants, which can stack:

• CPF Housing Grant (up to $80,000) for household incomes $14,000 and below
• Enhanced CPF Housing Grant (up to $120,000) for household incomes $9,000 and below
• Proximity Housing Grant (up to $30,000) if they live near parents

One more consideration: lease decay. Many older resale flats have fewer years left on their leases, which can affect future resale value and financing options.

If moving in quickly is a priority, and you’ve budgeted for higher upfront costs, a resale flat could be your fastest route to starting married life under the same roof. You can browse units for sale on platforms such as PropertyGuru or the Resale Flat Listing (RFL) service.

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4. Renting directly from HDB: Lower cost, harder to qualify

You can apply for an HDB rental flat through 2 main schemes: the Public Rental Scheme and the Parenthood Provisional Housing Scheme.

Public Rental Scheme

Pros	Cons
Extremely low rent compared to open market rates	Strict eligibility—must have no other housing options or family support
Secure lease backed by HDB	Not eligible if you can afford to rent privately or buy a flat
Available to singles or families	Ineligible if children can house or financially support you
Provides housing stability for vulnerable households	Very limited supply and possible long wait times
Applications reviewed holistically, considering income and circumstances	Limited choice of location and flat type

The Public Rental Scheme is for lower-income households with no other housing options or family support. Rents are well below open market rates, but supply is scarce and eligibility is strict.

• You can apply as a family or single if you have no other housing options or family support.
• You won’t qualify if you can afford other housing options, such as renting on the open market or buying a flat.
• You’re also ineligible if your children can house you or are financially able to secure housing for you.

Applications are assessed holistically, considering household income, size, budget, and circumstances.

If you qualify, rental costs start from ​​$26 – $33 for a 1-room flat if you’re a first-timer with a household income below $800. Currently, the highest rental cost under this scheme is at $205 – $275 for a 2-room unit, if your household income falls between $801 and $1,500.

 

Parenthood Provisional Housing Scheme (PPHS)

The PPHS provides temporary flats for first-timer married couples awaiting the completion of their booked BTO or resale flat. These are the eligibility conditions:

• ​​Monthly household income must be $7,000 or below (based on your flat purchase application).
• You must have booked an uncompleted HDB flat through an HDB sales exercise.
• You must be one of the following:
  • Married couple (both first-timers, or one first-timer and one second-timer)
  • Applicants under the Fiancé/Fiancée Scheme (both first-timers, or one first-timer and one second-timer)
  • Divorced or widowed parent with children
• Marriage registration is required within 3 months of collecting PPHS keys if applying under the Fiancé/Fiancée Scheme.
• At least one applicant must be a Singapore Citizen.

If you’re eligible, rental costs start from $400 for a 2-room flat in areas like Bukit Panjang, Clementi, and Yishun, and go up to $1,500 for a 4-room unit in Tiong Bahru or Bukit Merah.

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5. Renting on the open market: Flexible, but adds up

Pros	Cons
Immediate move-in	High monthly cost—up to $4,440 for 4-room flats in prime areas
Flexible lease terms and choice of location	Rent doesn’t build equity
Wide range of unit types and towns	Security of tenure depends on landlord and lease terms
No long-term purchase commitment	Deposit, utilities, and furnishing add to upfront expenses

For couples who need a place right after the wedding or while waiting for their BTO keys, renting from an HDB flat owner on the open market offers speed and flexibility. You can choose the estate, flat size, and lease length, typically 6 to 24 months, to suit your needs.

The trade-off is cost. In Q2 2025, median monthly rents for 4-room flats ranged from about $3,000 in Woodlands to $4,440 in the Central Area, with Queenstown at $4,000 and Toa Payoh at $3,600. Rent is money that doesn’t build equity, and over time it can significantly eat into your savings.

Before signing, ensure the landlord has HDB approval to rent out the unit and that you’re registered as an authorised tenant. Tenants must be Singapore Citizens, PRs, or non-citizens with valid passes of at least 6 months. Always include an HDB-approval clause in the tenancy agreement to protect your stay.

PPHS (Open Market) Voucher

If you’re PPHS-eligible but are renting from the open market, there’s also the PPHS (Open Market) Voucher you can tap on. This can be used to offset rent from the open market, as you’ll receive $300 per month for each complete month of tenancy, with no proration. There are 2 main batches of the PPHS (Open Market) Voucher in 2025:

• Batch 1: Between 1 Jul 2024 and 30 Jun 2025 (12 months)
• Batch 2: Between 1 Jul 2025 and 31 Dec 2025 (6 months)

To receive the voucher for a given month’s rent (for example, Sep 2025), you’ll need to submit your claim by the end of the following month (in this case, Oct 2025). Claims for Batch 1 and Batch 2 of the PPHS Voucher must be made separately.

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6. How to decide: Budget, grants, timeline

Choosing between a BTO, resale flat, or rental isn’t just about what you prefer—it’s about what fits your finances, eligibility, and life plans.

Step 1: Check grants and subsides

A smart first step is to check your eligibility for CPF housing grants and subsidies available, as these can significantly change the equation:

Housing type	Housing grant / voucher	Eligibility	Grant amount
HDB BTO / resale	Enhanced CPF Housing Grant (EHG)	$9,000 income ceiling	Up to $120,000
HDB resale	CPF Housing Grant	$14,000 income ceiling	Up to $80,000
HDB resale	Proximity Housing Grant (PHG)	Live with or near parents	Up to $30,000
Open market HDB rental	PPHS (Open Market) Voucher	Qualify for PPHS	$300 per month

 

Step 2: Work out your budget and financing 

Work out your combined monthly income and determine how much of it you can comfortably commit to housing without breaching the Mortgage Servicing Ratio (MSR) or Total Debt Servicing Ratio (TDSR) limits.

Be sure to account for the full range of expenses—not just the purchase price, but also the downpayment, renovation costs, moving fees, and if you’re renting, the monthly rent along with any required deposit.

 

Step 3: Consider your timeline

How soon you need to move in can narrow your choices quickly. If you want to be in your own place within months, a resale flat or an open market rental will get you there fastest. If you’re comfortable waiting three to five years, a BTO could save you money in the long run. For those in between, such as couples who have already booked a flat, temporary options like the PPHS or the PPHS Open Market Voucher can bridge the gap without locking you into a long-term purchase.

With your grants, budget, and timeline in mind, here’s a quick guide to which option might fit you best:

If you…	Consider…
Need to move in immediately	Resale flat or open market rental
Can wait and want lower cost	BTO flat
Are awaiting keys to a booked flat	PPHS or PPHS Open Market Voucher
Need lowest monthly outlay	Public Rental Scheme (if eligible)

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7. Conclusion

Back to the friend I mentioned at the start of this article. In the end, he chose a resale flat. For him, time was the deciding factor—he wanted to start married life under the same roof as soon as possible, even if it meant paying more upfront. It wasn’t the cheapest choice, but it was the right one for their circumstances.

That’s the reality for most couples: there’s no one-size-fits-all answer. The “best” option is the one that fits your timeline, your budget, and the way you picture your first years together. For some, that might mean patiently waiting for a BTO. For others, it’s jumping on a resale unit or renting while the perfect place takes shape.

Even in a market where prices keep climbing, there are still ways to make smart, timely decisions. Know your grants, understand your finances, and be realistic about your timeline so you can choose with confidence.

 

This article was first drafted with the help of AI and later reviewed and refined by the author.