In 2024, Singapore will introduce the new housing policy, which will introduce a new class of BTO flats (BTO), implementing the fourth round of cooling measures, and providing more financial assistance to first-time buyers.
Here are the five top housing stories of 2024 and what is to be expected in 2025.
1. New BTO classification rolled out
The BTO exercise in October 2024 saw the introduction of a new flat classification system, sorting units into Standard, Plus and Prime categories by their proximity to the city center and amenities, as well as transport connectivity. This replaced the old system of categorizing estates as mature or non-mature.
Flats of the Prime and Plus categories, which come with higher subsidies, have more stringent resale requirements. These include a 10-year minimum occupation period (MOP) and an incentive clawback when reselling. Flats that are eligible for resales are subject to a monthly income cap of $14,000 for resale buyers.
New categories include:
- Prime: Flats close to the city’s center with good connectivity to transport and are surrounded by a wide range of amenities. They are the ones that receive the highest subsidy. The subsidy clawback rate for the initial Prime Kallang/Whampoa project was set to 9.9%.
- Plus: Located in attractive locations within each region across Singapore like close to an MRT station or in the town centre. In the BTO exercise in October, the clawback rates for subsidy ranged between 6 and 8 percent.
- Standard: These flats come with a five-year MOP and have no income ceiling for those who purchase resales. Housing Board stated that these flats will make up the majority of housing inventory.
2. Tighter loan-to-value limit
In August, as part of an initiative to cool the resale housing market, the loan-to value (LTV) limit for HDB Housing Loans was lowered from 80 to 75 percent.
So buyers will have pay a higher down payment of 25 per cent of the purchase price in cash or Central Provident Fund (CPF) savings, as opposed to 20 percent prior to.
It was the fourth time in a row of property cooling measures in the period since December 2021.
The idea behind the move was to encourage prudent borrowing and dampen demand on the upper end of the HDB resale market.
In the period from January to November, the number of flats sold at more than $1 million doubled the previous record of 469 transactions.
First-time home buyers in the income brackets of lower to middle were able to tap more financial support under the enhanced CPF Housing Grant (EHG).
In August, EHG was increased so that families and singles who were eligible could get up to $60,000.
The grant was previously capped at $80,000 per family, and $40,000 for singles purchasing their first home, new or resale.
This announcement came in tandem with the tightened LTV limit.
85 percent of first-time buyers, which is more than 13,000 households will be able to benefit from the increase in annual grant according to Mr Lee had said in August.
4. Singles are no longer restricted to BTOs in non-mature estates
In 2024, singles will be able to apply for two-room, flexible flats throughout the country.
Prior to this, single first-time buyers who were 35 or older were only eligible for two-room flexi homes in estates that were not old enough.
After the BTO exercise began in October, singles began to request two-room flexi houses. There were 26 applicants competing for each of the 1,902 flats.
Up to 65 per cent of two-room flexi flats intended for seniors – in projects that span all categories are reserved for first-time singles, who will be restricted to the current income limit of $7,000.
5. BTO Projects with Special Features
The first two BTO projects within Bayshore which is an extension of Bedok town, was launched in October.
Bayshore Vista flats and Bayshore Palms feature full height windows and view of the East Coast Park waterfront or Bedok city for those units facing East Coast Park.
The developments, which are in the Plus category, were well-loved because they are close to East Coast Park as well as being two MRT stations – Bayshore and Bedok South stops on the Thomson-East Coast Line.
Crawford Heights, a Prime project in Kallang/Whampoa, which is testing open-concept layouts was also launched in the month of October.
The white flat plan, which is available without beams or partitions, allows homeowners to personalize the plan to meet their own preferences and needs.
Moving forward
1. The goal of 100,000 flats
Between 2021 and 2025, authorities are expected to reach their goal of 100,000 BTO homes.
82 710 flats are available for purchase. To reach the 100,000-flat goal around 17,300 flats would need to be released by 2025.
The target was set in order to meet the increasing demand from buyers, fueled by a buoyant resale market during the Covid-19 pandemic, which channelled more demand to BTO flats.
2. BTO projects expected in 2025.
In February, 5,000 units will be available for purchase. These include an 800-unit development located in Tanjong Rhu as well as an 1,500-unit development in Woodlands near the ocean.
Two projects located in Chencharu which is an upcoming HDB residential area in Yishun and flats in Mei Chin Road in Queenstown will also be made available for sale.
The first BTO project is expected to launch in 2025 on the former Keppel Club Site at the Greater Southern Waterfront.
On the 48ha area, the area will be home to 6,000 HDB apartments and 3,000 homes for private owners will be constructed. The residents will be able to enjoy the natural surroundings while still enjoying waterfront living.
The first of the six BTO projects to be built in the forthcoming Mount Pleasant housing estate is also expected to be launched.
The 33ha estate, which will have approximately 5,000 flats. It will include components from the Old Police Academy and pre-war black-and-white bungalows into the layout.
3. Draft Master Plan
The Urban Redevelopment Authority (URA) will unveil its next Draft Master Plan in 2025 to guide Singapore’s growth over the next 10 to 15 years.
URA was engaging with the public with regard to its plans since 2023.
It began competitions in 2024, to get 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 parts of Rail Corridor under the Queensway Viaduct.
The city also held several mobile exhibitions in order to collect feedback from the public on the proposed Recreation Master Plan. These will be included in a draft Master Plan.
The development possibilities include new houses as well as amenities in Newton and the rehabilitation of Yishun Sport Centre and an integrated development close to Woodlands North MRT station.