Singapore's Housing and Development Board (HDB) is set to release around 3,000 balance flats for sale in July 2025, marking the second Sale of Balance Flats (SBF) exercise of the year.

This will be accompanied by the launch of approximately 5,400 Build-To-Order (BTO) flats across several estates, including Bukit Merah, Bukit Panjang, Clementi, Sembawang, Tampines, Toa Payoh, and Woodlands.

For homebuyers, this presents another opportunity to secure a flat in well-connected and mature estates where demand remains high.

Largest supply of balance flats since 2017

With the upcoming launch, the total number of balance flats offered in 2025 will reach 8,500 units, making it the largest supply since 2017.

This follows the first SBF exercise in February 2025, which saw the release of 5,590 balance flats. The overwhelming demand for these flats was evident, with more than 22,000 applications received.

Why sale of balance flats (SBF) are popular

SBF flats continue to be highly sought after due to their shorter waiting times compared to BTO flats. Many of these units are already under construction or even move-in ready, making them an attractive option for buyers who do not want to wait three to five years for a new BTO flat.

How to prepare for the sales exercise

HDB has advised prospective buyers to apply for an HDB Flat Eligibility (HFE) letter by 15 May to participate in the upcoming sales exercise. The HFE letter is an essential document that determines eligibility for purchasing a flat, the amount of CPF Housing Grant one qualifies for, and details on HDB loan eligibility.

Without this letter, buyers will not be able to proceed with their flat application, making early preparation crucial.

Moderation in housing prices observed

In a recent Facebook post, Minister Desmond Lee noted early signs of moderation in price growth across both public and private housing markets.

In the first quarter of 2025, HDB resale flat prices increased by 1.5 per cent, down from the 2.6 per cent growth recorded in the last quarter of 2024. This suggests a potential cooling of the market, aligning with efforts to stabilise housing prices.

To further address supply concerns, the government has planned to launch over 50,000 Build-to-Order (BTO) flats from 2025 to 2027. Of these, about 12,000 units will have shorter waiting times of less than three years. For 2025 alone, HDB aims to roll out around 19,600 BTO flats.

Minimum Occupation Period (MOP) and Resale Market Outlook

Supply tightness in the resale market has been attributed to fewer flats reaching their Minimum Occupation Period (MOP), partly due to construction delays during the COVID-19 pandemic. However, Minister Lee pointed out that this trend will ease soon, as:

• 2025: About 8,000 flats will reach MOP.
• 2026: This number will increase to approximately 13,500.
• 2028: The supply of MOP flats will rise further to around 19,500.

With more flats entering the resale market in the coming years, supply constraints are expected to lessen, providing more options for homebuyers.

What's next for interested homebuyers

For those planning to buy a home in 2025, the upcoming launches present several opportunities. Buyers interested in balance flats should mark their calendars for the July 2025 SBF exercise, while those looking for BTO flats can expect a wider range of choices, including units with shorter waiting times.

Meanwhile, prospective resale flat buyers may find more options in the coming years as more flats reach their MOP.

With property prices showing signs of stabilisation and a larger supply of new and resale flats on the horizon, homebuyers will have more opportunities to secure their ideal home. However, given the continued high demand, acting early and staying informed about upcoming launches remains essential.

This article was first published in 99.co.