In 2024, Singapore will implement an updated housing policy which will include a new classification for BTO flats (BTO) and introducing the fourth round of cooling measure, and offering greater financial aid to first-time buyers.
These are the top five housing stories of 2024 and what we can expect for 2025.
1. New BTO classification has been rolled out
In the month of October 2024, the BTO exercise was the first step towards the implementation of the new system of flat classification. Units are classified into Standard, Plus, and Prime categories based on the proximity to cities as well as amenities, and their connectivity to transport. The method of dividing estates into non-mature and mature was changed.
The sale of Prime and Plus apartment that are more costly and subject to more stringent conditions. There is a minimum 10 year occupation time (MOP) and a the subsidy clawback is available at resales. Flats that are eligible for resales have a monthly income limit of $14,000 for buyers who are resales.
The new categories are:
- Prime: Apartments located in the heart of the city, with excellent transportation connections and a wide range of facilities. These are the flats which receive the most subsidy. The rate of subsidy clawback for the initial Prime Kallang/Whampoa project was set to 9percent.
- Additionally, they are situated in prime locations throughout Singapore. For instance close to MRT stations, or in town centers. The BTO exercise in October, the rates of subsidy clawback varied between 6 and 8 percent.
- Standard: Flats come with an MOP of five years, and there is no income limit for those who buy them at resales. Housing Board stated that these flats will continue to constitute the bulk of residential stock.
2. Limits on loan-to-value are slashed
In August, as part of an initiative to temper the housing market for resales the loan-to-value (LTV) limit to HDB Housing Loans was lowered from 80 percent to 75 percent.
The down payment is 25% of the price of the apartment either in money or in Central Provident Funds (CPF) as opposed to 20 percent prior to.
The fourth and final round of cooling measures for properties was enacted in December 2021.
The purpose of this policy was to encourage prudent borrowing and also to reduce market for the top part of the HDB market for resales.
From January through November, the amount of flats that were sold at over $1 million surpassed the previous record of 469 transactions.
The enhanced CPF housing grant (EHG) offered greater financial aid to first-time homebuyers who fall in the middle to lower income ranges.
In August, EHG was increased so that families and singles who were eligible could be eligible for as much as $60,000.
The grant had been set at $80,000 for families and $40,000 for singles purchasing their first home either new or resold.
The announcement of this change coincided with the raising of LTV limits.
In August, Mr. Lee stated that the grant increase will benefit 85 percent of first-time home purchasers, or 13,000 households.
4. Singles aren’t limited to BTOs on non-mature estates
In 2024 the singles will be able to apply for two-room, flexible flats throughout the country.
Before this, first-time buyers who were 35 or older could only get two-room flexi homes in estates that were not older.
Following the BTO exercise was announced in October, singles started to seek two-room flexi homes. More than 26 applicants competed for each of the 1,902 of these apartments.
Singles who are first-time will be able to access up 65 percent of two-room apartments across all categories of projects which aren’t designed for seniors. They’re restricted to a $7000 income maximum.
5. BTO Projects that have Special Features
In the month of October, the initial two BTO Bayshore projects that are an extension of Bedok Town, was launched.
Bayshore Vista flats and Bayshore Palms feature full height windows that offer view of the East Coast Park waterfront or Bedok city for those units that face East Coast Park.
The projects are part of the Plus category and were extremely well-liked because they were located close to East Coast Park, as well as Bayshore Station, Bedok South Stop on the Thomson-East Coast Line, and two MRT stations.
Crawford Heights, an open-concept project of Prime in Kallang/Whampoa was inaugurated in October.
The flat plan in white that is offered without partitions or beams, permits homeowners to design the layout to suit their personal preferences and requirements.
Take a look ahead
1. The goal of 100,000 flats
Between 2021 and 2025, the authorities will be able to meet their goal of 100,000 BTO homes.
82 710 flats are being offered for sale. To reach the target of 100,000 flats, around 17,300 flats must be constructed by 2025.
The goal was set to satisfy the demand for purchasers. The Covid-19 pandemic which increased the demand for resales and drove more people into BTO apartment.
2. BTO Projects to Be expected by 2025.
In February, 5,000 units are available to purchase. This includes an 800-unit development located in Tanjong Rhu as well as an 1,500-unit development in Woodlands near the ocean.
The deal will comprise two developments in Chencharu as well as a brand new HDB residential area that will be constructed in Yishun. Flats located on Mei Chin Road, Queenstown are also on the market.
The initial BTO project is scheduled to begin in 2025 at the former Keppel Club Site at the Greater Southern Waterfront.
In 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. The residents will be able to be close to nature and still enjoy the waterfront.
The initial six BTO housing projects are scheduled to be launched in the near future. Mount Pleasant housing estate.
The estate will cover 33ha and will include around 5500 apartments. It will contain parts from the Old Police Academy as well as bungalows in black and white dating from the pre-war.
3. Draft Master Plan
In 2025 in 2025, in 2025, the Urban Redevelopment Authority will release its next master plan draft to guide Singapore’s development over the next 10 to 15 years.
URA has been engaging people in its planning since 2023.
The company launched contests in 2024 to seek suggestions from the public on plans for redevelopment of the former Jurong Bird Park, Jurong Hill Parks, Tanjong Pgar Stations on Railways, Raffles Park Parks, and a portion of the Rail Corridor under the Queensway Viaduct.
The city also hosted several mobile exhibits to gather feedback from the public on the proposed Recreation Master Plan. These will be included in the Draft Master Plan.
The development options include new housing and facilities close to Woodlands North MRT station and a revamp of Yishun Sport Centre, and an integrated development in Newton.