SINGAPORE: Get ready, future homeowners! The landscape of Singapore’s public housing market is set to change dramatically with the construction of hundreds of new Build-To-Order (BTO) flats in prime locations such as Clementi, Toa Payoh, and Bukit Merah. Industry experts are predicting that this surge in new flats could significantly slow the soaring resale prices of existing public housing.

Market analysts suggest that the completion of these yet-to-launch Housing and Development Board (HDB) projects could ease the current high demand for resale flats. The HDB has been proactive in making available plots of land earlier and beginning construction before official announcements, a strategy termed "build before order." This initiative aims to mitigate the supply shortages that arose during the COVID-19 pandemic and stabilize the housing market.

As resale prices in certain public housing areas start breaching the million-dollar mark, the construction of new flats is a welcome sign for anxious buyers. Christine Sun, chief researcher and strategist at OrangeTee Group, explains, “By constructing BTO flats ahead of time, it provides assurance to buyers about the future supply of homes." She emphasizes that the government's readiness to release more land could further slow down price growth, benefiting potential homeowners in the long run.

What’s on the Horizon?

Analysts anticipate these new BTO flats will fall under the new public housing categorization system, which includes Standard, Plus, and Prime flats. Plus flats are typically found in desirable locations, such as near public transport hubs, while Prime flats occupy the most sought-after urban settings.

Breaking down the specifics, a total of 753 BTO flats are currently under construction in Clementi, strategically located near the town's MRT station and set to be completed by 2029. Toa Payoh will see an additional 741 units, also projected for completion by the same timeframe, conveniently situated near Caldecott and Braddell MRT stations. Finally, Bukit Merah is getting 498 units next to the Redhill MRT station, close to the Alexandra Peaks project, another Prime initiative set for completion by 2029.

The good news doesn't stop there! Speculation surrounds whether some of these newly constructed projects could offer shorter waiting times, less than three years—a game-changer for eager homebuyers. Historically, BTO projects built ahead of their launch date have aimed to reduce waiting times, but these new constructions are strategically located along the city fringe, providing quick access to MRT services just 300-400 meters away.

Nicholas Mak, chief research officer at property portal Mogul.sg, points out the HDB’s evolving strategy: “Previously, shorter waiting time flats were primarily in suburban areas. Now, we see a blend that includes prime locations.” This approach may open doors for many local families eager to move into more conveniently located homes.

Looking Ahead

This year alone, over 2,800 flats with shorter waiting times have already been launched, with the goal to roll out between 2,000 and 3,000 similar units annually by 2025. For those contemplating homeownership in Singapore, the future looks bright as these developments promise not only new homes but a potential reset of the housing market dynamics. If you’ve been dreaming of owning a flat in one of Singapore’s coveted neighborhoods, now might be the time to keep an eye out for these exciting new offerings!