Land-constrained Singapore has announced a new housing scheme for its HDB or Housing and Development Board (HDB) flats promising “choicer locations” in each region and a new classification that will come with tighter resale conditions and more subsidies.
With this, the Housing Board will do away with the decades-old labels of mature and non-mature estates, and replace them with a new classification system.
From the second half of 2024, Build-to-Order (BTO) projects will be classed Standard, Plus or Prime, with different resale conditions attached to each housing type. The new categories will not apply to existing flats or flat owners, or to flats already booked.
This major change was among a number of housing announcements made by Prime Minister Lee Hsien Loong at the National Day Rally on Sunday (Aug 20), along with a relaxation in the conditions for singles to buy HDB flats.
With little undeveloped land left to build new towns and estates, HDB will build more flats within or near to existing estates, Lee said.
These will often be more centrally located, such as the upcoming 5,000-flat development at Mount Pleasant, where the Police Academy used to be. New projects like these – nestled in older, more developed areas with a lot more amenities – will be more popular, and will naturally cost more, he said.
A second reason for the reclassification is that the line between mature and non-mature estates is blurring, and some projects in non-mature estates are even more popular than projects in mature estates.
Another change is that singles will be able to apply for two-room Flexi BTO flats in all locations, instead of only in non-mature estates, as is the case now. In the resale market, they will be able to buy a Standard or Plus flat of any size, as well as two-room Prime flats. Currently, singles cannot buy a Prime Location Housing resale flat.
The reclassification of BTO projects, a major structural change, should affect the way flats are allocated but the details have yet to be announced.
HDB flats are often affordable for locals but recent land cost has posed a dilemma for HDB, recently a BTO project made headlines for its high prices ranging from S$713,000 to S$877,000 (US$525,000 to US$645,000) for the five-room and 3-Gen flats, before grants.
Even then, these flats were heavily discounted off their true market value, said Mr Lee. And despite the high price, they were heavily oversubscribed, with more than 17 applicants for every flat.
