2024 wrapped: The biggest housing stories of the year, and what’s next
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The authorities are expected to complete their goal of launching 100,000 BTO flats from 2021 to 2025.
ST PHOTO: KUA CHEE SIONG
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SINGAPORE - A new classification for Build-To-Order (BTO) flats, a fourth round of property cooling measures and more financial support for first-time home buyers were among key housing policies rolled out in 2024.
Here are five of the top housing stories of 2024, and what can be expected in 2025:
1. New BTO classification rolled out
The BTO exercise in October 2024 marked the launch of a new flat classification system, sorting units into Standard, Plus and Prime categories
Prime and Plus flats, which come with greater subsidies, also have stricter resale conditions. These include a 10-year minimum occupation period (MOP) and a subsidy clawback upon resale. Resale buyers of these flats will also be subject to an income ceiling, which is currently set at $14,000 a month.
The new categories are:
Prime: Flats located close to the city centre that have good transport connectivity and are served by comprehensive amenities. These flats receive the most subsidies. The subsidy clawback for the first-ever Prime project, Crawford Heights in Kallang/Whampoa, was set at 9 per cent.
Plus: Located in attractive locations within each region across Singapore, such as near an MRT station or town centre. The subsidy clawback rate ranged from 6 to 8 per cent in October’s BTO exercise.
Standard: These flats come with a five-year MOP and have no income ceiling for buyers on resale. The Housing Board said these will continue to form the bulk of the housing supply.
2. Tighter loan-to-value limit
The loan-to-value (LTV) limit for HDB housing loans was lowered from 80 per cent to 75 per cent as part of a move introduced in August to cool the resale flat market.
This means buyers will have to fork out a larger down payment of 25 per cent of the flat’s purchase price in cash or Central Provident Fund (CPF) savings, compared with 20 per cent before.
This was the fourth round of property cooling measures since December 2021.
National Development Minister Desmond Lee had said the move was meant to encourage prudent borrowing
From January to November, 940 flats changed hands for at least $1 million, double the record of 469 such transactions in the whole of 2023.
3. Increased grants
In August, the Enhanced CPF Housing Grant was raised so eligible families and singles would be able to get up to $120,000 and up to $60,000, respectively.
PHOTO: ST FILE
First-time home buyers in the lower-to-middle income brackets were able to tap more financial support under the Enhanced CPF Housing Grant (EHG).
In August, the EHG was raised so eligible families and singles would be able to get up to $120,000 and up to $60,000, respectively.
Previously, the grant gave a maximum of $80,000 for families and $40,000 for singles buying their first new or resale flat.
This move was announced in tandem with the tightened LTV limit.
About 85 per cent of first-time buyers, or more than 13,000 households, are expected to benefit from the increased grant each year, Mr Lee had said in August.
4. Singles no longer limited to BTOs in non-mature estates
The year 2024 also saw the lifting of BTO application restrictions on singles, who can now apply for two-room flexi flats in all locations.
Previously, eligible single first-timers aged 35 and older could apply for new two-room flexi flats only in non-mature estates.
The lifting of this restriction starting from the October BTO launch led to overwhelming demand from singles for two-room flexi flats
Up to 65 per cent of two-room flexi flats – that are not meant for seniors – in projects across all categories are set aside for first-timer singles, who will be subject to the prevailing income ceiling of $7,000.
5. BTO projects with special features
The first two BTO projects in Bayshore, an extension of Bedok town
Flats in Bayshore Vista and Bayshore Palms will have full-height windows, with waterfront views for units overlooking East Coast Park, or city views for those facing Bedok town.
Analysts said the projects, which fall under the Plus category, were popular as they are near East Coast Park as well as two MRT stations – Bayshore and Bedok South stops on the Thomson-East Coast Line.
Crawford Heights, a Prime project in Kallang/Whampoa that is piloting open-concept layouts, was also launched in October.
PHOTO ILLUSTRATION: HDB
Crawford Heights, a Prime project in Kallang/Whampoa that is piloting open-concept layouts
Home owners can opt for the “white flat” layout, which comes without partitions and beams, to have the flexibility to configure the flat based on their needs and preferences.
Looking ahead
1. Achieving the 100,000-flat goal
The authorities are expected to reach their goal of launching 100,000 BTO flats from 2021 to 2025.
So far, 82,710 flats have been released for sale. To reach the 100,000-flat goal, about 17,300 flats will have to be rolled out in 2025.
This target was set to meet the strong demand from buyers, driven by a buoyant resale market amid the Covid-19 pandemic that channelled more demand to BTO flats.
To reach the 100,000-flat goal, about 17,300 flats will have to be rolled out in 2025.
PHOTO: ST FILE
2. BTO projects expected in 2025
In February, an 800-unit project in Tanjong Rhu and a 1,500-unit development in Woodlands near the sea are among 5,000 flats that will go on sale
Two projects in Chencharu, an upcoming HDB residential area in Yishun, and flats in Mei Chin Road in Queenstown will also be put on offer.
In 2025, the first BTO project on the former Keppel Club site in the Greater Southern Waterfront
Around 6,000 HDB flats and 3,000 private homes will be built on the 48ha site, which will offer waterfront living that is close to nature.
The first of six BTO projects in the upcoming Mount Pleasant housing estate
The 33ha estate, which will have about 5,000 flats, will incorporate elements from the Old Police Academy and pre-war black-and-white bungalows into its design.
3. Draft Master Plan
URA had been engaging the public on its plans since 2023.
PHOTO: LIANHE ZAOBAO
The Urban Redevelopment Authority (URA) will unveil its next Draft Master Plan in 2025 to guide Singapore’s development over the next 10 to 15 years.
URA had been engaging the public on its plans since 2023.
In 2024, it launched competitions to get the public’s ideas for redevelopment plans
It also held a series of roving exhibitions to get the public’s suggestions for its upcoming Recreation Master Plan, which will be incorporated into the Draft Master Plan.
Development possibilities included new homes and amenities in Newton, the redevelopment of Yishun Sport Centre and an integrated development near Woodlands North MRT station.
