Singapore – A brand new classification system for Build-to-Order (BTO) flats as well as a fourth round of property cooling measures, and more financial assistance for first-time home buyers were among the key housing policies that were introduced in 2024.
Here are five of the most popular housing stories of 2024 and what’s to be expected in 2025:
- New BTO classification has been rolled out
In October 2024, the BTO exercise marked the introduction of a new flat-classification system. Units are divided into Standard, Plus, and Prime categories, based upon their proximity to city centers and amenities as well as their transportation connectivity. It replaced the system that classified estates into mature or non-mature.
Flats of the Prime and Plus categories, which come with higher subsidies, have more stringent resale requirements. There is a minimum 10-year occupation period (MOP), and subsidy clawback at resale. Resales buyers of flats in this category will be subject to an income ceiling that is currently set at $14,000 a month.
New categories include:
- Prime: Apartments in the center of the city that have good access to transport and extensive amenities. These flats are eligible for the greatest subsidies. The rate of subsidy clawback for the first Prime project in Kallang/Whampoa was set at 9.9%.
- Plus: They are located in desirable places within each region of Singapore, such as close to an MRT station or in the town center. In the BTO exercise in October the clawback rates for subsidy ranged between 6 and 8 percent.
- Standard: Flats have an MOP of five years, and there is no income limit for buyers at resale. The Housing Board said these will continue to form the bulk of the housing supply.
- Tighter loan-to-value limit
As part of an initiative to cool down the housing market for resales The loan-to-value (LTV), limit to HDB Housing Loans was cut from 80 to 75 percent.
The buyers will need pay a higher down amount of 25 percent of the purchase price either in cash or Central Provident Fund (CPF) savings, as opposed to 20 percent before.
This was the fourth round of property cooling measures in the period since December 2021.
The idea behind the move was to encourage prudent borrowing and dampen demand at the higher end of the HDB resale market.
From January to November 940 flats traded hands for at least $1 million, double the record of 469 such transactions throughout 2023.
First-time home buyers from the lower-to-middle income brackets could get more financial assistance under the enhanced CPF Housing Grant (EHG).
In August, EHG was increased so that those who are eligible could be eligible for up to $60,000.
The grant was previously cap-sized at $80,000 for families and the single grant was $40,000 for those purchasing their first home, new or resale.
The announcement of this move coincided with the raising of LTV limits.
In August, Mr. Lee declared that the grant increase would benefit 85 percent of first-time buyers, which is 13,000 households.
- Singles can no longer be limited to BTOs on non-mature estates
2024 also witnessed the lifting of BTO application restrictions on singles, who can now apply for two-room flats at all locations.
Before, single first-timers who were 35 or older could apply for new two-room flexi flats only in non-mature estates.
After the BTO exercise was announced in October, singles started to request two-room flexi houses. There were 26 applicants competing for each of 1,902 of these flats.
Singles who are first-time will have access to to 65 percent of the two-room apartments in all project categories which aren’t designed for seniors. They’re restricted to a $7000 income limit.
- BTO projects that have specific features
In the month of October, the initial two BTO Bayshore projects, which is an extension of Bedok Town, went live.
Flats located in Bayshore Vista and Bayshore Palms have windows that are full height, with waterfront views of East Coast Park, or city views for units facing Bedok town.
The projects, which fall under the Plus category, were well-loved due to their proximity 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 piloting open-concept layouts, was also launched in the month of October.
The white flat plan with no beams or partitions, allows homeowners to personalize the layout to suit their own preferences and needs.
Look ahead
- Achieving the 100,000-flat goal
Between 2021 and 2025, the authorities should reach their target of 100,000 BTO apartment units.
Up to now there have been 82,710 flats put up for sale. In order to reach the target of 100,000 flats, approximately 17,300 new flats will have to be built by 2025.
This target was set in order to meet the demand for purchasers. The Covid-19 pandemic, that boosted resales and drove more people into BTO apartment.
- BTO Projects to Be Expected by 2025.
In February, 5,000 units will be offered to purchase. This includes an 800-unit project located in Tanjong Rhu as well as a 1,500 unit development in Woodlands by the sea.
The deal will comprise two developments in Chencharu and a new HDB residential area that will be built in Yishun. Flats located on Mei Chin Road, Queenstown and in the Queenstown area are also on the market.
The first BTO project is expected to launch in 2025 on the former Keppel Club Site at the Greater Southern Waterfront.
Nearly around 6,000 HDB flats as well as 3000 private homes will be built on the 48ha site, which will offer waterside living close to the natural beauty.
The first six BTO housing developments are scheduled to be launched in the future Mount Pleasant housing estate.
The estate will be 33ha in size and will contain about 5,000 apartments. It will comprise components of the Old Police Academy as well as bungalows in black and white dating from pre-war.
- Draft Master Plan
In 2025 in 2025, the Urban Redevelopment Authority will release its master plan’s next draft that will guide Singapore’s development in the next 10 years.
URA has been in contact with the public with regard to its plans since 2023.
It launched competitions in 2024 to solicit public input on plans to redevelop of the former Jurong Bird Park, Jurong Hill Parks, Tanjong Stations on Railways, Raffles Park parks, and parts of Rail Corridor under the Queensway Viaduct.
The city also held several mobile exhibits in order to collect public suggestions for the upcoming Recreation Master Plan. These will be incorporated into a Draft Master Plan.
Development options include new houses and amenities in Newton as well as the redevelopment of Yishun Sport Centre and an integrated development near Woodlands North MRT station.