HDB Launches 8,573 BTO Flats Under New Classification Framework, Including Prime and

HDB Launches 8,573 BTO Flats Under New Classification Framework, Including Prime and Plus Units

October 9, 2024

CONDOsingapore.com

Singapore’s Housing and Development Board (HDB) will launch 8,573 Build-To-Order (BTO) flats across 15 projects next week, marking one of its largest sales exercises to date. This October batch—representing over 40% of 2024’s total new flat supply—introduces the agency’s revised classification framework, categorizing units as Standard, Plus, or Prime based on location and amenities.

Key Highlights of the October Launch

Prime Flats: A standout project is Crawford Heights in Kallang/Whampoa, offering 312 units near Lavender MRT and future amenities like the Kallang Alive precinct.

Plus Flats: 3,273 units across seven projects in Kallang/Whampoa, Ang Mo Kio, Bedok (Bayshore Vista and Bayshore Palms), and Geylang. The Bedok projects will integrate rental flats to promote inclusive communities.

Standard Flats: 4,988 units in non-central areas like Bukit Batok, Jurong West, Pasir Ris, Sengkang, and Woodlands.

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New Framework: Balancing Affordability and Equity

Prime and Plus flats, priced higher due to desirable locations, will come with enhanced subsidies but stricter resale and rental restrictions to curb speculative gains. Minister for National Development Desmond Lee emphasized these measures aim to reduce the “lottery effect” and prioritize owner-occupation.

Subsidy Clawbacks: Larger subsidies for Prime/Plus flats mean higher recovery rates upon resale to maintain fairness.

Resale Curbs: Prime flats face a 10-year Minimum Occupation Period (MOP) and resale buyer eligibility caps.

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Market Context and Policy Shifts

Lee addressed rising resale prices, noting a 12.7% surge in 2021 and continued growth until 2023, driven by pandemic-induced construction delays and heightened demand. Recent cooling measures, including tightened loan limits, aim to stabilize the market. Meanwhile, private property prices dipped 1.1% in Q3 2024, potentially easing pressure on HDB resale values.

Addressing Gentrification Concerns

Building in prime areas like the Greater Southern Waterfront posed a dilemma: while offering discounted BTO prices improves accessibility, unchecked resale profits could deepen inequality. Lee stressed the need to avoid gentrification and preserve social cohesion, justifying the new restrictions.

Expanded Options for Singles and Faster Availability

Singles: Eligible applicants can now apply for two-room Flexi flats across all categories (Standard, Plus, Prime), a shift from previous non-mature estate limitations.

Shorter Wait Times: 2,085 flats in Bukit Batok and Sengkang will have construction timelines under three years.

Pricing and Availability

Details on subsidies and pricing for Prime/Plus flats will be released at launch. Current median resale prices (September 2024) range from S$387,000 for a three-room flat in Jurong West to S$975,000 for a five-room flat in Kallang/Whampoa, and S$988,000 for a five-room flat in Ang Mo Kio.

This launch underscores HDB’s efforts to balance housing accessibility with long-term equity, ensuring desirable locations remain inclusive while stabilizing the broader property market.