Singapore – A brand new classification for Build-to-Order (BTO) flats and a fourth round property cooling measures and more financial support for first-time buyers were among the key policy changes to the housing market that were implemented in 2024.
Here are the five top housing stories for 2024 and what to expect in 2025.
- New BTO classification rolled out
In October 2024 the BTO exercise was the beginning of the new flat-classification system. Units are divided into Standard, Plus, and Prime categories, based upon the proximity to cities as well as amenities, and their transportation connectivity. The classification system that classified estates into non-mature and mature categories was replaced.
The resale of Prime and Plus apartment which are more expensive, is also subject to more strict conditions. There is a minimum 10-year occupation period (MOP), and subsidy clawback at resale. Resale buyers of these flats are also restricted to an income limit which currently stands at $14,000 a month.
The categories that have been updated include:
- Prime: Apartments in the heart of the city with good access to transport and extensive amenities. These flats are the ones that receive the highest subsidies. The clawback of subsidy for the very first Prime project, Crawford Heights in Kallang/Whampoa, was set at 9 per cent.
- Additionally, they are situated in desirable locations across Singapore. For example they are close to MRT stations or town centers. The subsidy clawback rate ranged from 6 to 8 per cent in October’s BTO exercise.
- Standard Flats: These are homes that come with the MOP for five years and no income limit for buyers who buy resales. The Housing Board said these will remain the majority of the housing supply.
- Limits on loan-to value are tightened
As part of an initiative to cool the housing market for resales the loan-to-value (LTV), limit for HDB Housing Loans was lowered from 80 to 75 percent.
The down payment will be 25% of the price of the property in cash or Central Provident Funds (CPF), compared to 20 percent before.
The fourth and final round of cooling measures to property was implemented in December 2021.
The aim of this move was to encourage prudent borrowing, and to lessen demand for the high part of the HDB market for resales.
From January to November, the number of flats sold at more than $1 million surpassed the previous record of only 469 transactions.
First-time home buyers who fall in the lower-to-middle income brackets were able to tap more financial support under the enhanced CPF Housing Grant (EHG).
In August in August, the EHG was raised so people who qualify for it could get up to $120,000 or up to $60,000 in total, respectively.
The grant had been capped at $80,000 per family, and $40,000 per single for those buying their first apartment whether new or resold.
The announcement of this decision coincided with the raising of LTV limits.
85 percent of first-time buyers, or over 13,000 households, are expected to be able to benefit from the increase in grant each year according to Mr Lee announced in August.
- Singles are no longer only available to BTOs on non-mature estates
In 2024 in 2024, singles will be eligible to apply for two-room flexible flats across the country.
Previously, eligible single first-timers 35 and older were able to apply for two-room flexi flats, but only in non-mature estates.
The lifting of this restriction starting from the October BTO launch resulted in a massive demand from singles seeking two-room flexi flats in the BTO exercise, with more than 26 single applicants trying to get each of the 1,902 flats.
As high as 65 percent of two-room flexi flats which aren’t designed for seniors – in projects across all categories are reserved for first-time singles, who will be subject to the prevailing income limit of $7,000.
- BTO Projects with Special Features
The initial two BTO projects within Bayshore which is an extension of Bedok town, were launched in October.
Bayshore Vista flats and Bayshore Palms have full height windows with view of the East Coast Park waterfront or Bedok city for units facing East Coast Park.
The developments, which fall in the Plus category, were well-loved as they are near East Coast Park as well as two MRT stations located at Bayshore and Bedok South stops on the Thomson-East Coast Line.
Crawford Heights, a Prime project in Kallang/Whampoa that is piloting open-concept layouts, was launched in October.
Home owners may choose the white flat layout, which is without partitions or beams, to have the option of arranging the flat according to their preferences and needs.
Look ahead
- Achieving the 100,000-flat goal
Between 2021 and 2025, the authorities are expected to reach their goal of 100,000 BTO apartments.
82 710 flats are currently being offered for sale. In order to reach the goal of 100,000 flats approximately 17,300 flats will have to be rolled out in 2025.
The goal was set to satisfy the demand for buyers. The Covid-19 virus, which boosted the resale sector, pushed more people to BTO apartment.
- BTO Projects to Be Expected in 2025
In February, 5,000 apartments will be available for purchase. They include an 800-unit project in Tanjong Rhu as well as the development of 1,500 units in Woodlands near the ocean.
The offer will include two developments in Chencharu and a new HDB residential zone to be built in Yishun. Flats located on Mei Chin Road, Queenstown and in the Queenstown area are also available.
In 2025, the first BTO project on the former Keppel Club site in the Greater Southern Waterfront is expected to begin construction.
On the 48ha area, the area will be home to 6,000 HDB houses and 3,000 HDB apartments that are for private property owners will be built. This will allow residents to be close to nature while still enjoying waterfront living.
The initial of 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 about 5,000 flats, will include elements from the Old Police Academy and pre-war bungalows that were black and white in the layout.
- Draft Master Plan
In 2025, the Urban Redevelopment Authority will release its next master plan draft to guide Singapore’s development for the next 10-15 years.
URA has been in contact with the public about its plans since 2023.
In 2024, the park launched contests to collect the public’s ideas for new plans to redevelop the old Jurong Bird Park as well as Jurong Hill Park, the former Tanjong Pagar Railway Station, Raffles Place Park and a portion of the Rail Corridor site under a Queensway viaduct.
It also held a series of roving exhibits to collect the opinions of the public on its forthcoming Recreation Master Plan, which will be included in the Draft Master Plan.
Development possibilities included new housing and amenities in Newton as well as the redevelopment of Yishun Sport Centre and an integrated development near Woodlands North MRT station.