Tuesday, October 12, 2010

Difference Between DBSS and BTO

The main difference between DBSS (Design, Build and Sell Scheme) and BTO (Build to Order) is:
  • DBSS are new flats in mature estates developed by private developers, hence are not considered to be subsidized. So 2nd time HDB buyers do not need to pay HDB resale levy if they buy such flats.
  • BTO are new flats in new (aka upcoming) estates developed by the HDB, hence they are still considered to be subsidized. So 2nd time HDB buyers will need to pay HDB resale levy if they were to buy such flats.
With this major difference, those HDB home buyers that can afford DBSS may buy through DBSS instead of BTO flats. Another advantage of the DBSS is that it allows family with higher income to purchase a HDB flat as well, instead of just being able to purchase condominiums. The gross household income eligible to buy such flats range from $8 - 10K a month, with up to $12K a month if they are purchasing together with their extended family. (i.e. to be purchased with their parents-in-law's name)

As for BTO, the maximum gross household income is actually $8K a month only.
Download: Knight Frank Research Paper on "An assessment of the
Design, Build and Sell Scheme (DBSS)" to find out more about DBSS and BTO.

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2 comments:

  1. AnonymousNovember 17, 2011 at 11:25 AM

    Not sure if you information is correct ??

    ReplyDelete
  2. RuDecember 16, 2011 at 2:18 PM

    I would say that the information is correct as of 2010. The current income ceiling is now $10,000 if you were to purchase DBSS from Yishun PH1 and Tampines PH2 onwards. Find out more about DBSS projects

    And the HDB income ceiling for Buying a 3-room (mature towns/estates), 3-room (Premium), 4-room or bigger flat is now also $10,000. Which means, there's actually not a lot of benefit in purchasing a DBSS flat.

    The main difference is that DBSS flats cost a lot more than the normal HDB flats including BTO but you will not need to pay the resale levy for 2nd time buyers. And for BTO, you will need to pay a resale if your first flat is subsidized. (See Resale Levy for more information)

    Which means, if this is your first flat, just buy a normal HDB flat. :)

    ReplyDelete

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