October 2024 BTO sales exercise will comprise 1 Prime project, 7 Plus projects, and 7 Standard projects; first BTO launch under location-based classification

Prime, Plus, and Standard Options roll out for October BTO Exercise

The much-anticipated October 2024 Build-To-Order (BTO) exercise is shaping up to be a historic one for Singapore’s public housing landscape. It marks the first implementation of the new location-based classification framework, introducing three categories for flats—Prime, Plus, and Standard—based on their proximity to transport, amenities, and the city centre. This shift from the previous town-based mature/non-mature classification is set to redefine how Singaporeans view and select public housing options.

With a total of 15 projects comprising 8,573 units, this will be the largest BTO sales exercise ever, making up more than 40% of HDB’s total flat supply for the year. Among these, the 312-unit Crawford Heights in Kallang/Whampoa stands out as the only Prime project, while seven Plus projects and seven Standard projects will be spread across different towns.

In a major policy shift, singles will also benefit from expanded eligibility in this BTO launch. For the first time, singles will be able to apply for two-room flexi flats in all estates, including Standard, Plus, and Prime locations, which was previously limited to non-mature estates. This move signals a more inclusive approach to public housing, catering to the growing demand from singles seeking homes in prime areas.

Prime, Plus, and Standard: Understanding the New Framework

  1. Prime Flats: These are in highly coveted central locations with excellent transport connectivity and proximity to amenities. For this BTO exercise, Crawford Heights in Kallang/Whampoa is the sole Prime project. While Prime flats offer substantial subsidies, buyers must return a percentage of their flat’s resale price or valuation to HDB when selling, as part of the subsidy clawback mechanism. Additionally, Prime flats will be subject to a 10-year minimum occupation period (MOP), a longer time commitment than the usual five-year MOP for Standard flats.

  2. Plus Flats: Slightly less central but still in attractive locations with good access to transport and amenities, Plus flats will also offer subsidies and be subject to clawback conditions, though at a lower rate than Prime flats. Plus flats will also have a 10-year MOP. Seven Plus projects will be available in towns like Bedok (three projects) and Kallang/Whampoa (two projects).

  3. Standard Flats: These flats, available in non-central locations, will not have any subsidy clawbacks and are subject to a five-year MOP. Standard projects make up the majority of BTO offerings, with seven projects available across different towns, including Pasir Ris, Bukit Batok, and Jurong West.

Singles: Expanded Eligibility and Greater Access

The October BTO launch is especially significant for singles, who will now be able to apply for two-room flexi flats across all estates under the new framework. This change allows singles to access flats in both Prime and Plus locations, which was previously restricted. In fact, this BTO exercise will offer 1,902 two-room flexi units, the highest number of units available for singles across the three BTO exercises this year.

Moreover, up to 65% of non-senior two-room flexi flats in Standard, Plus, and Prime projects will be set aside for first-timer singles, giving them better chances of securing a flat in a location of their choice. Singles with a monthly income of $7,000 or less can apply for Prime or Plus flats, while those earning above $7,000 can apply for Standard or Plus resale flats but will not be eligible for Prime resale flats.

Grants and Financial Aid for Singles

Singles buying their first home will also have access to housing grants to aid in their purchase. For example, those with a monthly income of $4,500 or below can tap into the Enhanced CPF Housing Grant (EHG) of up to $60,000. Additionally, singles buying resale flats can apply for the CPF Housing Grant (up to $40,000) and the Proximity Housing Grant (up to $15,000).

By mid-2025, singles will also be given priority access when applying for BTO flats to live with or near their parents, giving them more flexibility in securing a home that aligns with their familial commitments.

Summary Highlights:

  • BTO Categories: 1 Prime project, 7 Plus projects, and 7 Standard projects in October 2024 BTO.
  • Total Flats Offered: 8,573 units, the largest number of BTO flats released in one exercise.
  • Prime Project: Crawford Heights in Kallang/Whampoa.
  • Expanded Eligibility for Singles: 1,902 two-room flexi flats available across all estates, marking the highest supply for singles in 2024.
  • First-Timer Singles: Up to 65% of non-senior two-room flexi units reserved for first-timer singles.
  • Grants: Up to $60,000 EHG for singles, with additional CPF Housing Grant and Proximity Housing Grant available for resale flats.

Interpretation

This October BTO launch represents a significant shift in public housing policy, with the introduction of Prime, Plus, and Standard categories offering more differentiated options based on locational attributes. The expanded eligibility for singles marks a progressive step towards inclusivity, allowing singles to access homes in prime and well-connected areas, a privilege previously reserved for families.

For buyers, especially singles, this is an unprecedented opportunity to secure a home in some of Singapore’s most sought-after locations. However, it is important to carefully consider the financial implications, particularly with the 10-year MOP and subsidy clawback conditions attached to Prime and Plus flats. With improved financial aid options and expanded eligibility criteria, singles now have greater access to housing in prime areas, making this BTO exercise a potential game-changer.

Call to Action

Looking to secure a BTO flat in the October exercise? Whether you're interested in Prime, Plus, or Standard flats, or if you're a single applicant exploring new options, reach out to us today for guidance and to stay updated on the latest developments. Don't miss out on this opportunity to find your perfect home!

(Source 1, 2)

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