SINGAPORE: Get ready for exciting news in the housing sector!

The Housing & Development Board (HDB) has announced plans to launch over 25,000 new flats in 2025, marking a significant step in addressing the ongoing demand for affordable housing.

Minister for National Development, Desmond Lee, confirmed that this impressive figure includes 19,600 Build-to-Order (BTO) flats across three separate sale exercises and more than 5,500 Sale of Balance (SBF) flats in a single sale.

Highlights of the Launch

Among the 19,600 BTO flats, a noteworthy highlight is the introduction of 3,800 Shorter Waiting Time (SWT) flats, which promise a wait time of less than three years.

This is an increase from the 2,876 SWT flats offered in the previous year, significantly surpassing HDB's commitment of introducing 2,000 to 3,000 SWT flats annually.

Diverse Options for Singaporeans

The new classification framework will categorize these flats into three types: Standard, Plus, and Prime, strategically located in sought-after areas such as Bukit Merah, Kallang/Whampoa, Mount Pleasant, Queenstown, Sembawang, Woodlands, and Yishun.

This diversity in location and flat type reflects HDB's commitment to providing varied options for Singaporeans.

Minister's Optimism

Minister Lee expressed optimism about this initiative, stating, “With the planned offer of another 19,600 BTO flats in 2025, we are on track to launch approximately 102,300 BTO flats from 2021 to 2025, surpassing our promise to roll out 100,000 new flats during this five-year time frame.”

Response to Rising Housing Demand

In response to rising housing demand, HDB has stepped up its efforts over the past four years, with around 82,700 BTO units launched between 2021 and 2024.

However, the resale market might face challenges, as projections indicate a drop in the supply of flats hitting the five-year Minimum Occupation Period (MOP) threshold in 2025, with estimates of about 7,000 units.

Anticipated Market Changes

This anticipated reduction is primarily attributed to the suspension of construction work during the pandemic, which caused delays in numerous projects.

According to property consultancy Huttons, the increase in BTO and SBF flat offerings is expected to create more choices for buyers, potentially stabilizing the resale market.

The introduction of SWT flats is also anticipated to lure some demand away from the resale segment.

Balancing the Housing Landscape

With more BTO and SBF flats entering the market, including the appealing SWT options, HDB aims to alleviate the existing shortage of MOP flats and help balance the housing landscape.

Resale Market Projections

As for the resale market, HDB transactions are projected to hit between 26,000 and 28,000 units, with resale prices expected to rise at a more subdued rate of 5% to 8% this year, a notable decline compared to previous growth rates.

Future Rental Price Trends

But that’s not all! Experts predict rental prices for private homes and HDB flats will also see an increase of 2% to 4% in 2025, reflecting ongoing trends in the real estate market.

Could this be the right time for you to make a move in the housing market? Stay tuned for more updates!