Plus flats in October BTO launch to see robust demand despite tighter rules, say analysts
1. A new classification system
The Build-to-Order (BTO) sales exercise, which runs from Oct 16 to 23, is the first time that new flats are classified as Standard, Plus and Prime.
This marks an overhaul to the classification of estates as either mature or non-mature, and was a necessary step to ensure affordable home ownership, good social mix and a fair housing system, authorities said.
Flats are classified based on “a holistic assessment” of three key criteria – proximity to the city centre, transport connectivity and availability of amenities, such as social and commercial services that are typically found in town centres.
In general, Prime and Plus flats have superior locational attributes. They are priced with more subsidies to ensure affordability but will also come with stricter resale rules like a 10-year minimum occupation period and subsidy clawbacks.
Meanwhile, standard flats have the same subsidies and restrictions currently applied to all BTO flats, such as a five-year minimum occupation period.
2. Most number of BTO projects
HDB will offer 8,573 flats across 15 projects in nine HDB towns.
This marks the largest number of projects launched in a BTO exercise to date, according to National Development Minister Desmond Lee.
The number of new flats launched will also account for more than 40 per cent of the new flat supply for 2024.
3. More options for Singles
This is the first time that singles are allowed to apply for two-room flexi flats in all locations across Singapore. Previously, eligible singles above 35 could only apply for such flats in non-mature estates.
Nearly 2,000 two-room flexi units are on offer across 10 projects this time.
4. The launch of “white flats”
In another first, a new type of HDB flat without partition walls and beams will be offered to flat applicants as an option.
HDB said this will offer buyers a “white canvas” to design the flat according to their needs and preferences.
These “white flats” will be piloted at Crawford Heights, the only Prime project in this sales exercise.
Prices for these “white flats” will be reduced by S$6,000 for a three-room flat and S$8,600 for a four-room flat to take into account the non-provision of internal partition walls and some electrical points.
5. Grants, loan rule changes
Eligible first-time flat buyers will be able to tap on more financial support.
To provide further support for lower to middle-income home buyers, the Enhanced CPF Housing Grant was in August raised to provide up to S$120,000 in grants for families.
Another change to note is the lowering of the maximum loan that home buyers can take from HDB.
Also from August, the loan-to-value limit for HDB housing loans was tightened from 80 per cent to 75 per cent – a cooling measure aimed at encouraging more prudent borrowing and dampening demand at the higher end of the public housing resale market.
