The National Day Rally 2023 speech, which took place on 20 August 2023, saw a few changes to existing HDB policies. Here are the three main property-related announcements you should take note of.
| National Day Rally 2023 announcements | Changes announced |
| New classification for HDB flats | The ‘mature’ and ‘non-mature’ HDB estate classifications will be replaced; from H2 2024 onwards, BTO flats launched will be labelled as Prime, Plus, or Standard flats |
| More BTO and resale flat housing options for singles | Singles aged 35 and above can apply for 2-room Flexi BTO flats under the Prime, Plus, and Standard categories. When buying from the resale market, they can buy any flat size of Plus and Standard flats; for Prime flats, they are limited to 2-room flats only |
| HDB flats and estates to be more senior-friendly | Enhancements to the Enhancement for Active Seniors (EASE) programme; more shelters and resting points built, barrier-free ramps and raised zebra crossings will be constructed; longer green man signals; lifts to more overhead bridges; larger, more colourful signs and familiar symbols installed around HDB blocks, etc. |
National Day Rally 2023: Prime, Plus, and Standard HDB Flats from H2 2024 Onwards
From H2 2024 onwards, gone are the days BTO flats will be launched under the mature or non-mature HDB estate label. Instead, the new BTO projects will be classified as Prime, Plus, or Standard flats.
| Categorisation | Standard HDB flats | Plus HDB flats | Prime HDB flats |
| What | Most of the HDB flats across the island | Choicer locations within regions (e.g. near MRT stations and town centres) | Most central, choicest locations |
| Cost | Most affordable with standard subsidies | More pricey than Standard flats but less expensive than Prime HDB flats More subsidies provided |
Most costly but also with the most subsidies of all flat categorisations |
| Duration of Minimum Occupation Period (MOP) | Five years | 10 years | 10 years |
| HDB resale restrictions | Most lenient resale flat restrictions among the three categories | Some resale flat restrictions Subsidy clawback upon resale, but lower than Prime HDB flats; resale buyers will have an imposed income ceiling and other eligibility criteria; more details to be announced later |
Tightest resale restrictions Subsidy clawback upon resale; renting of whole flat not allowed (after fulfilling MOP); resale buyers have to meet full BTO eligibility criteria |
Currently, certain BTO projects in mature neighbourhoods with attractive locational attributes launched under the Prime Location Public Housing (PLH) model. Only four neighbourhoods are considered as ‘prime’ under the PLH model: Central Area, Queenstown, Kallang/Whampoa, and Bukit Merah.
As PM Lee jokingly pointed out, the “[Prime Location Public Housing model] is a lot of words, so let’s just call them ‘Prime’ projects”. One less acronym to memorise aside, these three categories will more accurately reflect the realities of the HDB flat landscape.
This change comes as Singapore becomes more built up and a larger number of BTO projects are launched in or close to existing HDB estates. Additionally, non-mature HDB estates have become more developed over time, with more amenities and improved transport infrastructure. Under the Prime, Plus, and Standard categorisation, the attributes of each new BTO project can be more accurately assessed.
Existing flat owners and those who have already booked their BTO flats will not be affected by this new classification.
How Future BTO Flats Could Be Categorised
- North and North-East regions (e.g. Ang Mo Kio, Punggol): mostly Standard and some Plus flats
- West region (e.g. Tengah, Bukit Batok): mostly Standard and some Plus flats
- Central region (e.g. Kallang/Whampoa, Bukit Merah): mostly Plus and Prime HDB flats
- East region (e.g. Bedok, Pasir Ris): mostly Standard and some Plus flats
According to Dr Lee Nai Jia, Head of Real Estate Intelligence, Data and Software Solutions, PropertyGuru Group, the revised housing classification system provides substantial advantages. Most notably, it “bridges the gap for lower-income groups to reside closer to their workplaces and transportation nodes”.
While he acknowledges that the restrictions that come with the Prime and Plus BTO flats may not be popular among buyers, he highlights these restrictions would help slow down future price appreciation of the flats and 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, emphasizing their role as primary residences and curbing tendencies to view them as mid-term investment avenues.”
National Day Rally 2023: More BTO and Resale Flat Housing Options for Singles
In line with keeping home ownership affordable, maintaining a good social mix and promoting inclusivity within neighbourhoods, as well as keeping the system fair, there were announcements which saw changes to the housing options available to unmarried citizens.
Previously, these Singaporeans who were single and unwilling to mingle – as well as LGBTQ+ individuals – had to wait till 35 if they wanted to buy an HDB flat. Even then, they could only apply for a 2-room Flexi flat in non-mature estates or buy a resale HDB flat from the open market. Much to the ire of singles, they were also excluded from buying PLH flats.
What HDB Flats Can Singles Buy
| New BTO flats for singles | Singles can apply for 2-room Flexi flats under Standard, Plus, and Prime categories, regardless of location |
| Resale flats for singles | Singles can purchase any size of Standard and Plus flats (with the exception of 3Gen flats), only 2-room Prime HDB flats |
For singles buying a BTO flat, the BTO income ceiling of $7,000 remains unchanged. In line with existing BTO eligibility criteria, singles who wish to buy a 2-room Prime HDB flat from the resale market will have to earn less than $7,000 per month.
Dr Lee Nai Jia points out that this shift comes as the Singapore government acknowledges the needs of this growing Singaporean demographic.
“Given the comparatively lower subsidies allocated to singles, a substantial number find themselves priced out of the current market, more so if their familial homes are situated in prime locales. The newly introduced policy, in light of these challenges, is poised to alleviate immediate demand pressures for BTO flats among this group of Singaporeans.
We project a discernible uptick in application rates for residences within the Prime and Plus category. However, this doesn’t necessarily translate into a disruption for the broader HDB resale market. The influence of the Prime category’s popularity among singles may manifest in specific micro-markets but is unlikely to cascade into overarching market volatility.”
National Day Rally 2023: HDB Flats and Estates to Be More Senior-friendly
To prepare for an ageing population, HDB estates and homes will be transformed to become more senior-friendly. The goal is to keep current and future seniors active and socially integrated, allowing the elderly to age in familiar surroundings with comfort and dignity.
Enhancements to the Enhancement for Active Seniors (EASE) programme will be made to create even more elder-friendly homes. The existing EASE programme gives seniors the option to install ramps to their front doors and grab bars and slip-resistant flooring in their toilets. EASE 2.0 will allow seniors to select from more fittings such as foldable shower sets or widened toilet entrances to improve convenience, mobility and safety at home.
Within the neighbourhood, various improvements will be made. They include:
- Street and linkways often used by seniors will be updated; aside from more shelters and resting points built, barrier-free ramps and raised zebra crossings will be constructed
- 3D road markings and narrowed roads to slow traffic
- Lifts to more overhead bridges for greater convenience
- Longer green man signals, raised zebra crossings to help wheelchair users
- Larger, more colourful signs and familiar symbols installed around HDB blocks to aid seniors in finding their way home
More Community Care Apartments will also be launched. These flats will have care services which cater to the elderly residents’ needs.
Parallel to these public sector initiatives, Dr Lee Nai Jia has observed trends in the private housing market which underscore the evolution of homeowners’ preferences as they age.
“A significant number are transitioning, or ‘rightsizing’, to residences that align better with lifestyle needs. This natural progression, coupled with the continued residence of many seniors in their long-term homes, suggests an impending increase in demand for specialised home maintenance and cleaning services, particularly in mature private estates.”
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