SINGAPORE - The upcoming Build-To-Order (BTO) sales exercise next week will have seven projects launched in the Standard category, seven more in Plus, and just one Prime BTO project, as the Housing Board rolls out a new system of classifying flats.
It will mark the first time where BTO flats will be sorted according to these three categories. The new framework will replace the current system of classifying estates as either mature or non-mature.
Explaining how BTO projects will be categorised under the new framework, National Development Minister Desmond Lee said on Oct 9 that HDB does so based on a project’s proximity to the city centre, transport connectivity and amenities.
Prime and Plus flats, which are located closer to amenities such as MRT stations and town centres, will come with stricter resale conditions, such as a 10-year minimum occupation period (MOP) and a subsidy clawback.
Standard flats will not have a subsidy recovery clause when they are sold, and will come with a 5-year MOP.
“Many Singaporeans prefer to live in HDB flats that are well-connected and near amenities and their workplaces. Plus and Prime projects will fulfil their preferences but these also come with higher market values. HDB will provide additional subsidies to keep them affordable, but also impose additional restrictions to ensure fairness,” said Mr Lee.
He was speaking to students from the Singapore University of Technology and Design at the launch of HDB’s MyNiceHome roadshow on campus.
A total of 8,573 BTO flats will be launched in October, the largest launch of the three sales exercises in 2024, comprising 4,988 Standard flats, 3,273 Plus flats and 312 Prime flats.
Spread across nine towns - Ang Mo Kio, Bedok, Bukit Batok, Jurong West, Geylang, Kallang/Whampoa, Pasir Ris, Sengkang and Woodlands - October’s exercise will make up more than 40 per cent of new flat supply for 2024.
As for what differentiates Prime and Plus projects, Mr Lee said Prime flats “tend to be located close to the city, have good transport connectivity and are well-served by comprehensive amenities”.
Pointing to the one Prime and two Plus projects to be launched in Kallang/Whampoa, Mr Lee said all three are a short commute to the city centre, but the Prime project, Crawford Heights, is “one notch above” the other developments.
He cited its proximity to the Rochor River, Kallang Riverside Park, and the future Kallang Alive lifestyle precinct which will have a new indoor stadium and training and sports facilities. It is also a five-minute walk to Lavender MRT station.
Mr Lee also said unlike flats launched so far under the prime location public housing model, which have been in towns surrounding the city centre - such as Bukit Merah, Queenstown and Kallang/Whampoa - Prime projects will not be limited to these estates.
As for Standard flats, Mr Lee said these may have “one or two good attributes”. He cited as examples the Costa Riviera I and II projects in Pasir Ris, which are very near Pasir Ris MRT.
The other Standard projects include Marsiling Ridge in Woodlands, which is about a five-minute walk from Marsiling MRT station, and Taman Jurong Skyline in Jurong West, near Jurong Lake Gardens.
Mr Lee said the move to the new framework comes as the distinction between mature and non-mature towns becomes blurred, this is because transport and amenities have improved across all estates.
HDB is also building new flats in very attractive locations, he said, adding that these flats, such as those located in the city centre, would command higher market values, and would be out of reach of many families if the HDB prices them higher.
More families would be able to afford these flats if HDB lowered prices through higher subsidies, but without stricter conditions, owners of Plus and Prime flats would be able to “cash out” and receive a windfall when they sell their flats on the resale market, Mr Lee added.
“This would worsen the ‘lottery effect’ and would be unfair to those who did not have the opportunity to buy these flats,” he said.
The tighter restrictions for Plus and Prime flats, which include a longer MOP and subsidy recovery among other things, are meant to address this.
Mr Lee added that the new framework ensures home ownership continues to be affordable, estates have a good social mix and the system remains fair.
“These are critical to ensuring our society remains cohesive,” he said.
The October exercise takes the number of BTO flats launched from 2021 to 2024 to 82,710. The authorities had pledged to launch 100,000 flats from 2021 to 2025.
In his speech Mr Lee also outlined recent moves by the authorities cool the resale market. In August, the government reduced the loan-to-value limit for those taking HDB housing loans to 75 per cent, down from 80 per cent.
In the coming years, BTO projects will be launched in new areas such as the Greater Southern Waterfront, Pearl’s Hill, and Bukit Timah Turf City.
Mr Lee said projects in the Greater Southern Waterfront or Turf City may fall under the Prime category when they are launched.
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This article was first published in The Straits Times. Permission required for reproduction.
