In 2024, Singapore will introduce a new housing policy that includes a new classification of BTO flats (BTO) and introducing the fourth round of cooling plan, as well as providing additional financial assistance for first-time buyers.
Here are the five top housing stories for 2024 and what to expect in 2025.
- New BTO classification has been rolled out
The BTO exercise in October 2024 was the first step towards introducing the new flat classification system sorting units into Standard, Plus and Prime categories in accordance with their proximity to the city’s centre and amenities, and transport connectivity. The method of dividing estates into non-mature and mature was substituted.
Flats of the Prime and Plus categories, which are subsidized with higher subsidies, have stricter resale conditions. There is a minimum 10 year occupation period (MOP) and a the subsidy clawback is available at resales. Buyers who resell these flats will also be subject to a ceiling on income that is currently set at $14,000 a month.
The new categories are:
- Prime: Apartments situated in the heart of the city with good transportation connections and a wide range of facilities. They are the ones that receive the highest subsidies. The clawback of subsidy for the first Prime project, Crawford Heights in Kallang/Whampoa was determined at 9 percent.
- Plus: Located in attractive places within each region of Singapore, such as near an MRT station or in the town centre. The subsidy clawback rate ranged from 6 to 8 percent in the October BTO exercise.
- Standard: These flats have an MOP of 5 years and have no income limits for buyers who purchase resales. The Housing Board said these will continue to constitute the largest portion of the housing supply.
- Tighter loan-to-value limit
As part of an initiative to cool the housing market for resales The loan-to-value (LTV) limitation to HDB Housing Loans was reduced from 80 percent to 75 percent.
This means buyers will have to pay a greater down payment of 25 % of the price for the flat either in cash or Central Provident Fund (CPF) savings, compared with 20 per cent before.
The fourth and final round of cooling measures for properties was enacted in December 2021.
The intention was to promote prudent borrowing as well as dampen the demand at the top of the HDB resale market.
Between January and November, 940 flats changed hands for at minimum $1 million, which is more than the record of 469 such transactions throughout 2023.
First-time home buyers from the lower-to-middle income brackets could get more financial support under the Enhanced CPF Housing Grant (EHG).
In August, EHG was increased so that those who are eligible could get up to $60,000.
The grant had been set at $80,000 for families and $40,000 per single for those purchasing their first house whether new or resold.
The announcement of this change coincided with the raising of LTV limits.
Around 85 percent of first-time buyers, or more than 13,000 households, will be able to benefit from the increase in grant each year, Mr Lee has stated in August.
- Singles can no longer be only available to BTOs on non-mature estates
The year 2024 also witnessed the lifting of BTO application restrictions for singles who are now able to apply for two-room flats in all locations.
Prior to this, single first-timers who were 35 or older could apply for two-room flexi apartments only within non-mature estates.
The removal of this restriction as of the October BTO launch resulted in an overwhelming demand from singles for two-room flexi flats in the BTO exercise, with more than 26 single applicants competing for each of the 1,902 flats.
As high as 65 percent of two-room flexi apartments intended for seniors – in projects that span all categories are reserved for first-time singles, who will be subject to the prevailing income limit of $7,000.
- BTO projects with special features
In the month of October, the very first two BTO Bayshore projects that are an extension of Bedok Town, went live.
Bayshore Vista flats and Bayshore Palms are equipped with full height windows with views of the East Coast Park waterfront or Bedok city for units facing East Coast Park.
The projects, which fall in the Plus category, were popular due to their proximity to East Coast Park as well as two MRT stations in the vicinity – Bayshore and Bedok South stops on the Thomson-East Coast Line.
Crawford Heights, a Prime project in Kallang/Whampoa which is piloting open-concept layouts, was also launched in October.
The flat plan in white that is offered without beams or partitions, allows home owners to customize the layout to suit their own preferences and needs.
Look ahead
- The goal of achieving 100,000 flats
The authorities are likely to meet their target of the opening of 100,000 BTO flats by 2021 until 2025.
So far there have been 82,710 flats released for auction. To reach the goal of 100,000 flats, roughly 17,300 new flats will have to be constructed by 2025.
This goal was established to satisfy the high demand of buyers. The Covid-19 pandemic that boosted resales, pushed more people to BTO apartment.
- BTO Projects to be anticipated by 2025.
In February, 5,000 units are available for sale. This includes an 800-unit project located in Tanjong Rhu as well as an 1,500-unit development in Woodlands by the sea.
Two developments located in Chencharu in the emerging HDB residential zone in Yishun and flats in Mei Chin Road in Queenstown will also be made available for sale.
In 2025 the first BTO project on the former Keppel Club site in the Greater Southern Waterfront is expected to go live.
About around 6,000 HDB flats as well as three private residences will be built on the 48ha site, which will offer waterside living near to nature.
The initial of the six BTO projects that will be part of the planned Mount Pleasant housing estate is scheduled to launch in the coming weeks.
The estate will span 33ha and will contain about 5500 apartments. It will include parts from the Old Police Academy as well as black-and white bungalows from pre-war.
- Draft Master Plan
In 2025 In 2025, the Urban Redevelopment Authority will release its next master plan draft that will guide Singapore’s development in the next 10 to 15 years.
URA has been engaging people in its plans since 2023.
The company launched contests in 2024 to solicit suggestions from the public on plans for redevelopment of the former Jurong Bird Park, Jurong Hill Parks, Tanjong Pgar Railway Stations, Raffles Park Parks, and part of Rail Corridor under the Queensway Viaduct.
The city also held several mobile exhibitions to gather comments from the public regarding the forthcoming Recreation Master Plan. These will be incorporated into a draft Master Plan.