BTO Flats To Be Designated As Standard, Plus Or Prime In New Classification Framework
While the majority of Singapore’s population lives in HDB flats, we’ve divided them into mature or non-mature estates for the longest time.
This will change from the second half of 2024, when a new three-tier classification framework will be introduced for Build-To-Order (BTO) flats.
Source: Housing & Development Board on Facebook
At the same time, singles, who have long lamented that their choice of flats was limited, will be allowed to buy flats in all estates across the island.
New classification for BTO flats
Prime Minister Lee Hsien Loong announced this as he delivered the National Day Rally speech at the Institute of Technical Education (ITE) Headquarters in Ang Mo Kio on Sunday (20 Aug).
He noted that our housing landscape is evolving, and the current framework, where BTO flats are classified as located in mature or non-mature estates, will no longer work.
Source: Prime Minister’s Office on YouTube
Thus, BTOs will be classified as Standard, Plus or Prime from the second half of 2024.
The difference between the categories will be in terms of location, amount of subsidies and how tight the resale restrictions are.
Source: Lee Hsien Loong on Facebook
While Standard flats are found all over Singapore and will have standard subsidies and standard restrictions, Plus flats will be located in a “choicer region” with more subsidies and tighter restrictions.
Prime flats will have the choicest locations and enjoy the most subsidies but have the tightest restrictions.
This new framework will not affect existing projects, current homes, or homes already booked.
More subsidies & 10-year MOP for Plus flats
In a joint press release from the Ministry of National Development (MND) and HDB, they elaborated that Plus flats would be located in good locations near MRT stations or town centres.
They will get more subsidies than Standard flats to keep their flats affordable and enable a wider range of Singaporeans to purchase them.
However, Plus flat owners will have to pay a proportion of the resale price if they choose to sell their flats for the sake of fairness.
Like Prime flats, a Minimum Occupation Period (MOP) of 10 years will be imposed, to discourage those thinking of flipping the property.
Source: Housing & Development Board on Facebook
Just like those under the Prime Location Public Housing (PLH) model, Prime flats will have the highest subsidies and tightest resale restrictions.
However, they’re typically located closer to the city centre, for example, Bukit Merah Ridge.
Source: Desmond Lee on Facebook
Classification of majority of BTO flats will be Standard
With regard to the distribution of Standard, Plus and Prime flats, a graphic by the HDB shows that Standard flats will be the majority in the West, North, Northeast and East of Singapore.
Some of the flats in these regions will be designated as Plus flats, depending on their locations within the regions.
Source: Housing & Development Board on Facebook
Estates in the Central region of Singapore, including Bishan and Bukit Merah, will comprise mostly Plus flats.
There will also be Prime flats there, depending on location.
Govt has heard concerns of singles: PM Lee
PM Lee also noted that “more and more Singaporeans are choosing to be single”, and the Government has heard their concerns, one of them being,
Singles too hope to own their homes and have more housing choices.
Currently, singles can only buy two-room Flexi flats in non-mature estates and aren’t allowed to buy flats under the PLH model.
These have restricted singles’ choices, the PM said.
Thus, he added that they will be able to buy two-room Flexi flats across all types of BTO projects, also from mid-2024.
Singles can buy flats of all models
In their joint press release, the MND and HDB said singles aged 35 and above would be able to apply for new two-room Flexi flats in all locations in Singapore, regardless of what they’re classified as.
For resale flats, they can buy flats of any size under the Standard and Plus models, and two-roomers under the Prime model.
However, three-generation flats are still off-limits.
Source: Housing & Development Board on Facebook
Singles can look forward to more choices soon
While singles can look forward to having more housing choices next year, this hasn’t been the case for a long time.
In October 2021, Minister for National Development Desmond Lee told singles they were not eligible for flats under the PLH model.
Singles Ineligible For Prime Location Resale Flats, Model Is New & Untested: Desmond Lee
With the upcoming change to this policy, PM Lee said he’s sure singles will welcome the move as they can then write their own part in Singapore’s housing story.
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Featured image adapted from Housing & Development Board on Facebook.
