15 to 21 August 2023
HDB has introduced a new BTO classification system, replacing the long-standing mature and non-mature estate labels. Meanwhile, singles aged 35 and above will be allowed to apply for new 2-room Flexi BTO flats across all locations from H2 2024.
1. HDB to launch new public housing classification, new Plus flats to have stricter conditions
HDB has introduced a new classification system, replacing the long-standing mature and non-mature estate labels.
This comes as the distinction between mature and non-mature estates have become blurred, with some projects within non-mature estate being more popular than those in mature estates.
Under the new system, BTO flats will be categorised as Standard, Plus, and Prime flats from the H2 2024, reported CNA.
Flats in “choicer locations”, such as near town centres and MRT stations, will be placed under the Plus category. They will come with a longer Minimum Occupation Period (MOP) of 10 years, a clawback of subsidies and stricter resale conditions
Speaking at the National Day Rally 2023, Prime Minister Lee Hsien Loong explained that tighter HDB resale conditions will help moderate resale prices and maintain a better social mix.
Prime BTO projects will be located in the central region, with the flats carrying the same conditions as those under the Prime Location Housing (PLH) model.
Standard flats, on the other hand, will have the same restrictions and subsidies presently applied to non-PLH BTO flats. These flats will continue to account for the bulk of the housing supply, said the Ministry of National Development (MND) and HDB.
On this change, Dr Lee Nai Jia, Head of Real Estate Intelligence, Data and Software Solutions, PropertyGuru Group commented, “The restrictions that come with the Prime and Plus BTO flats may not be popular among buyers. However, these restrictions would help slow down future price appreciation of the flats, which are much desired due to the location attributes. It also helps reduce the lottery effect.
Beyond affordability, these stipulations also facilitate community growth and deepen social ties within the district. A swift turnover of residents may inadvertently disrupt the community’s fabric, necessitating inhabitants to continually rebuild social connections.
Furthermore, these measures reinforce the core ethos of public housing, emphasising their role as primary residences and curbing tendencies to view them as mid-term investment avenues.”
2. Singles can buy 2-room flexi flats across all locations from H2 2024
Starting from H2 2024, singles aged 35 and above will be allowed to apply for new 2-room Flexi BTO flats across all locations: Standard, Plus, and Prime flats.
In the HDB resale market, singles will be allowed to purchase 2-room Prime Flexi flats and Plus or Standard resale flats of any size, reported TODAY.
The change comes as more Singaporeans choose to be single and the government acknowledges their desire to own homes and be given more housing options.
Currently, singles can only acquire BTO flats in non-mature estates and are not allowed to purchase any flats launched under the PLH model.
“As the housing market continues to evolve, we project a discernible uptick in application rates for residences within the Prime and Plus category. This surge can be attributed to the distinct preferences of single applicants, who largely favour the 2-room Flexi flats in locations that are accessible to public transport nodes.
Given the intrinsic attributes of the Prime and Plus categories, combined with the evolving needs of modern urban dwellers, it’s plausible to anticipate a dominant trend of owner-occupation among these applicants,” said Dr Lee Nai Jia.
Related article: HDB Single Scheme and Joint Singles Scheme: Guide to Buying HDB Flat As a Single in Singapore
3. HDB flats to be more senior-friendly, with new features including foldable shower seats, wider toilet entrances
With nearly one in four Singaporeans expected to be aged 65 and above by 2030, efforts will be made to enable seniors to enjoy their golden years in familiar environments, said PM Lee.
HDB flats will become more senior-friendly, with the Enhancement for Active Seniors (EASE) programme upgraded to offer a wider array of options such as foldable shower seats and widened toilet entrances for wheelchair-bound seniors, reported CNA.
To create a safer and more comfortable environment for seniors, streets and linkways will be revamped while rest points and shelters will be built.
PM Lee shared that more therapeutic gardens, exercise machines, fitness trails, and pedestrian-friendly roads will also be developed.
More assisted living facilities will also be built to cater to those “who need a little more help”, he said.
With loneliness being one of the biggest threats facing seniors, the government will set up active ageing centres across the country to help seniors stay engaged and socially active.
“So we are taking major steps to prepare for a super-aged society,” said PM Lee.
“Together, we will make Singapore an endearing home for all ages, where seniors can age with dignity and grace, connected with friends and family,” he added.
Related article: HDB Flats for Seniors: Community Care Apartments Vs 2-room Vs 3-room Flats
4. New BTO framework to have a smaller impact on the HDB resale market
Analysts believe HDB’s new BTO framework could divert demand to existing flats and shrink the pool of upgraders to private housing, reported The Business Times.
Under the new framework, Plus flats will be introduced in desirable locations near town centres and transport nodes. These flats will come with more subsidies and tighter resale conditions, such as a 10-year MOP.
Dr Lee Nai Jia explained, “In the near term, macroeconomic factors will continue to be the primary drivers of the resale market. Despite recent announcements, it’s anticipated that there will be minimal impact on demand. This is because a significant proportion of property seekers are propelled by immediate requirements.
He said, however, that “Fast forwarding two decades, potential supply constraints in Prime and Plus locales within the resale market might emerge as a point of concern. Additionally, the owners of Prime and Plus flats may pass the burden of the clawback to the subsequent buyers.”
Nevertheless, “It’s logical to assume that the majority of flats will fall under the Standard category. Given that only a limited number of locations can qualify as Prime or Plus, buyers should still have access to affordable options in the resale sector.”
Related article: Why I Bought an HDB Resale Flat When Prices Are at a Record-High in 2022
5. More state-owned buildings to be converted into co-living spaces
More state-owned buildings will be used as co-living spaces, with the awarding of a tender for a heritage shophouse at Hindoo Road being the first of many such buildings to be launched in the next few months.
The move is aimed at meeting the rising demand for such housing as well as addressing the evolving lifestyle trends and consumer demand.
The Singapore Land Authority (SLA) revealed that it has awarded the tender for the two-storey building at 79 to 95 Hindoo Road to construction firm Eco Energy.
The firm’s winning proposal, which was jointly developed with co-living operator Cove Living, will see the building rebranded into “1925 Quarters” – a nod to the property’s history “as the quarters for the junior Asian staff of the Municipality of Singapore”.
Meanwhile, a state-owned building at 26 Evans Road, near the Botanic Gardens, was also put up for tender. Much like the Hindoo Road property, the tender offers an upfront tenure of five years, which can be renewed for another four years.
Related article: 3 Best Co-living Spaces in Singapore to Consider
6. 105 properties linked to suspects in money laundering investigation
Singapore police have arrested 10 foreign nationals during a $1 billion (US$736 million) money laundering investigation, which saw 105 properties issued with the prohibition of disposal orders, up from 94 initially, reported CNA.
With a total value of about $831 million, the properties included 79 condominium units, 19 commercial spaces, and seven detached bungalows in Sentosa Cove.
Of the 79 condominium units, 19 were still under construction.
“These properties are owned by the persons under investigation (who either had been arrested or are wanted by the Police), their spouses, or companies that are linked to these persons under investigation or their spouses,” said the police.
Notably, the Good Class Bungalows (GCB) where the suspects were caught were not part of the prohibition of disposal orders since such properties did not belong to them.
Assets worth $1 billion (US$736 million), including properties, cars, bank accounts, goods and cash were seized or frozen in connection to the probe.
The suspects – comprising nine men and one woman aged 31 to 44 – were citizens of Turkiye, China, Cyprus, and Ni-Vanuatu. All of them held Employment and Dependant Passes.
Related article: 7 Sentosa Cove Houses For Sale: How Much to Buy These Luxury Homes for ‘Crazy Rich Asians’?
7. HDB to relocate 170 rental households at Spooner Road
HDB will relocate about 170 rental households at Blocks 1 and 2 Spooner Road by end-September 2024 as part of estate renewal plans.
Featuring a mix of 1-room to 3-room flats, the two eight-storey blocks were built in 1983 and were previously owned by the Malayan Railway Administration, which is now known as KTM, reported The Straits Times.
They were converted to HDB rental flats in 2012.
Retired carpenter Francis Finian De Souza, one of the tenants, is saddened by the prospect of moving out given that he and his three housemates are living harmoniously.
“But this is a rental flat so if we’re asked to move, we don’t complain. As long as we have a next place to live in, it’s okay,” said De Souza.
HDB said tenants affected by the relocation will be offered options like moving to another flat or buying a new flat if they are able to. They will also receive rehousing benefits covering moving costs, regardless of their choice.
In fact, a care team has been formed comprising social service agencies, grassroots leaders, and community partners to help tenants during the transition.
8. Urban Redevelopment Authority (URA) launches Clementi Avenue 1, Pine Grove sites
Two government land sites in Clementi Avenue 1 and Pine Grove, which could potentially yield a total of 1,065 housing units, have been put up for sale via public tender.
With a leasehold tenure of 99 years, the two sites are part of the 5,160 housing units to be made available through the Confirmed List of the H2 2023 Government Land Sales (GLS) programme, said the URA.
The Clementi Avenue 1 site spans 13,451 sq m and has a maximum gross floor area (GFA) of 47,079 sq m. The site in Pine Grove (Parcel B), on the other hand, has an area of 25,039 sq m and a GFA of 52,583 sq m.
The tender for the sites will close on 7 November 2023.
OrangeTee expects the site in Clementi Avenue 1 to attract four to seven bidders, with the highest bid at about $1,100 to $1,200 per sq ft per plot ratio (PSF ppr).
For the Pine Grove site, it sees three to five bidders, with the top bid ranging between $1,150 and $1,250 PSF ppr.
9. Works at the new Pasir Panjang bus depot to start next year
Construction works for a new bus depot in Pasir Panjang are expected to commence in 2024, with completion set in 2029, reported The Straits Times citing the Land Transport Authority (LTA).
Located on the former site of Pasir Panjang Distripark in Harbour Drive, the new depot – which can accommodate 550 buses – will comprise a seven-storey main building, ancillary buildings and multi-storey quarters for transport workers.
The main building will house facilities for daily bus operations, maintenance, repair, parking and chargers for electric buses. Its roof will also be fitted with a solar photovoltaic panel system.
LTA said the depot is expected to support buses that are operating within Singapore’s southern region.
The authority recently called a tender for the construction of a depot on the Pasir Panjang site, which had been left vacant since 2017.
The area was identified in 2021 as a possible temporary distribution site for the food supply chain.
Once completed, the new depot will be turned over to the relevant public transport operator for outfitting and preparatory work, said LTA.
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Marcus Lee, Content Executive at PropertyGuru, edited this story. To contact him about this story, email: marcuslee@propertyguru.com.sg.
