estimate
In a joint press release by the Housing and Development Board (HDB) and the Ministry of National Development (MND) on Jan 16, Minister for National Development Desmond Lee announced that over 25,000 new flats will be launched by HDB in 2025. This includes 19,600 build-to-order (BTO) flats spread across three sales exercises, as well as more than 5,500 sale of balance flats (SBF) in a single SBF sale exercise.
The units will consist of Standard, Plus, and Prime BTO flats under the new classification framework. In February, the launch will offer around 5,000 flats in Kallang/Whampoa, Queenstown, Woodlands, and Yishun. HDB’s largest-ever Sale of Balance Flats (SBF) exercise is scheduled for next month as well, with over 5,500 flats available in various estates.
Of the SBF flats, 40% are already completed units, while the rest are at different stages of construction and expected to be completed between 2025 and 2028. In total, more than 10,000 new flats will be available through the February BTO and SBF exercises.
Over the past four years (2021-2024), HDB has launched approximately 82,700 BTO flats. With a planned pipeline of 19,600 BTO flats in 2025, HDB is on track to launch more than 102,300 BTO flats, exceeding its commitment of 100,000 units over five years.
The increase in BTO supply has resulted in a drop in application rates, with the average rate among first-time homebuyers for BTO across all flat types standing at 2.1 in 2024, compared to 3.7 in 2019 before the pandemic. The average rate for three-room and larger flats among first-timers last year was 2.2, down from 4.0 in 2019.
According to Minister Lee, HDB will continue to release a steady pipeline of flats to meet housing demand in the next few years. Over 50,000 flats are expected to be launched between 2025 and 2027, bringing the total to approximately 130,000 flats launched from 2021 to 2027.
Around 3,800 of the 19,600 new flats, or one-fifth of the BTO flats planned for launch in 2025, will be Shorter Waiting Time (SWT) flats with a waiting period of less than three years. This is an increase from the 2,876 SWT flats offered in 2024 and more than the committed annual supply of 2,000 to 3,000 SWT flats.
.
Investing in a condo requires careful consideration of financing options. Singapore has various mortgage choices available, but it is crucial to have knowledge about the Total Debt Servicing Ratio (TDSR) framework. This framework sets a limit on the amount of loan a borrower can take, taking into account their income and current debt obligations. To avoid over-leveraging, it is essential for investors to understand the TDSR and seek guidance from financial advisors or mortgage brokers. Singapore Condo offers a comprehensive range of financing options for investors to make informed decisions about their investment.
“The SWT flats will also provide more options for buyers and potentially attract some demand away from the resale market,” says Lee Sze Teck, senior director of data analytics at Huttons Asia.
In 2025, Lee estimates that about 7,000 HDB flats will reach their five-year minimum occupation period (MOP), the lowest supply of such resale flats since 2015. “With HDB assuring buyers that they will push out more BTO and SBF flats to meet demand, this will offer more choices for buyers and stabilise the resale market,” he says. “The larger flat supply and SWT flats will address the shortfall in MOP flats.”
Huttons’ Lee predicts that HDB resale flat transactions in 2025 will range between 26,000 and 28,000, lower than the 28,876 units recorded last year. Resale flat prices are expected to grow at a slower pace of 5% to 8% this year, compared to the 9.6% increase reflected in HDB’s flash estimate for 2024.
Check out the latest listings for HDB propertiesAsk BuddyPast HDB rental transactionsListings for HDB flatsPast HDB sale transactionsCompare price trend of HDB vs Condo vs LandedWhat is the HDB loan rate?Past HDB rental transactionsListings for HDB flatsPast HDB sale transactionsCompare price trend of HDB vs Condo vs LandedWhat is the HDB loan rate?
RELATED NEWS
Is it a Good Deal?: $1.125 million for an almost new four-room HDB flat along Dawson Road
ANALYSIS: HDB towns with the highest price growth
Resale flat prices rise 2.5% in 19th straight quarter: HDB 4Q2024 flash estimate