Home buyers in Singapore are set to benefit from the upcoming October Build-to-Order (BTO) sales exercise, which will launch next week with the largest number of projects to date. This exercise will mark the debut of a new classification system for public housing flats, aimed at offering more variety in housing types and ensuring affordability across different income groups. The Housing and Development Board (HDB) announced the availability of 8,573 flats across 15 projects in nine towns under the Standard, Plus and Prime framework, designed to cater to diverse housing preferences and needs.

New Framework: Standard, Plus, and Prime Flats

In a major shift, flats will now be categorized as Standard, Plus, or Prime based on their location, connectivity, and available amenities. This replaces the previous distinction between mature and non-mature estates.

- Standard flats: Represent the baseline classification, generally found in areas with good but fewer premium attributes.
- Plus flats: Found in "choicer locations" with better connectivity and unique features, offering a middle ground between Standard and Prime.
- Prime flats: Located in areas with exceptional locational advantages, including proximity to the city center and amenities.

HDB announced that seven Plus projects and one Prime project will be available in the upcoming exercise. The Plus projects will span towns like Kallang/Whampoa, Ang Mo Kio, Bedok, and Geylang, offering a total of 3,273 units. Notable developments include Kallang View, positioned between Kallang and Geylang Bahru MRT stations, and two waterfront projects—Bayshore Vista and Bayshore Palms —providing a sea view for upper floors. 

The sole Prime project, Crawford Heights, will be located at the junction of North Bridge Road and Crawford Street in Kallang/Whampoa, offering 312 flats in a central area within a five-minute walk of Lavender MRT station.

Standard Flats Still Dominate

While the Plus and Prime flats present attractive options for buyers looking for premium locations, Standard flats will make up the bulk of this exercise, with 4,988 units across seven projects in towns like Bukit Batok, Jurong West, Pasir Ris, Sengkang, and Woodlands. These flats range from two-room flexi to larger 3Gen flats, offering a variety of housing options to meet different family sizes and needs.

New Classification to Promote Fairness and Affordability

The revamped classification aims to promote a good social mix in all towns and ensure that housing remains affordable to all income groups. In line with this, HDB will provide additional subsidies to buyers of Plus and Prime flats, ensuring they remain accessible to a broader range of Singaporeans. However, to prevent speculative gains, or what is often called the "lottery effect," these flats will come with stricter resale conditions, including a 10-year minimum occupation period (instead of the usual five years) and a subsidy clawback upon resale.

Changes to Allocation Quotas and Schemes

The new classification will also lead to adjustments in flat allocation quotas and ballot chances for first-timer applicants. Flats that were previously categorized as non-mature estate flats will now align with the Standard classification, while parameters previously applied to Prime Location Public Housing (PLH) flats will now apply to Prime flats under the new system.

One significant change in this BTO exercise is that singles will, for the first time, be allowed to apply for two-room flexi flats in all locations across Singapore. More than 1,900 two-room flexi flats will be available in 10 of the 15 projects, offering greater opportunities for singles to own homes.

Shorter Waiting Times for Select Flats

In addition to the variety of housing types, buyers can look forward to shorter waiting times for certain projects. HDB will offer 2,085 flats with reduced waiting times across three projects in Bukit Batok and Sengkang, including West BrickVille in Bukit Batok, where flats will be completed within two years—one of the shortest wait times for a BTO project.

Conclusion

This upcoming BTO exercise, with its largest-ever number of projects and the new classification system, signals a significant step toward creating more inclusive and diverse public housing options in Singapore. The mix of Standard, Plus, and Prime flats provides potential homeowners with a broader range of choices, ensuring that housing remains accessible, equitable, and reflective of the different needs and aspirations of Singaporeans.

Frequently Asked Questions (FAQs)

Question: What happens if there is a divorce within the 10-year MOP?

Answer: Neither husband nor wife is allowed to take ownership of the residential property, the flat will have to be surrendered back to HDB at a price that will likely be based on the original BTO purchase price less acquisition costs.

Question: I am a single, what type of HDB flat can I buy?

Answer: First-time single applicants are now eligible to: (a) purchase new two-room flexi flats in all locations under the Standard, Plus, and Prime categories; (b) purchase Standard or Plus flats of any size (excluding 3Gen flats) on the resale market; and (c) purchase two-room flexi Prime flats on the resale market.

Question: When does the Minimum Occupation Period start counting?

Answer: The 10-years Minimum Occupation Period (MOP) for your Plus or Prime HDB flat is calculated from the date you collect your keys. It does not include any periods when the flat is not occupied, such as when the entire flat is rented out or if there has been a breach of the flat lease.

Question: What is the income ceiling for resale buyers of the Plus and Prime flats?

Answer: The income ceiling is S$14,000 for the resale of Plus and Prime flats whereas the income cap for singles is S$7,000 if it is a Prime flat.

Question: Can I rent out my whole flat after MOP?

Answer: No, you are not allowed to rent out your entire flat if it is classfied under Plus or Prime flats. This type of flats are meant for genuine owner occupation and not investment. However, you can rent out individual bedroom as a room rental.