BUY AND SELL A SINGAPORE PROPERTY FROM THE COMFORT OF YOUR HOUSE

The Singapore government is reviewing two key public housing policies — the eligibility age for singles to buy Build-to-Order (BTO) flats and the income ceiling for applicants — with changes to be introduced at an “appropriate time”, said National Development Minister Chee Hong Tat. Speaking on the need to balance supply with policy adjustments, Mr Chee noted that demand for homes remains strong, particularly among younger Singaporeans keen to own property earlier in life. Housing Supply Boost After Pandemic Delays The Housing and Development Board (HDB) has stepped up efforts to increase housing supply after delays caused by the COVID-19 pandemic. All previously delayed projects have since been completed. Between 2021 and 2025, the government had committed to launch 100,000 new flats. That target has already been surpassed, with about 102,300 units rolled out. Looking ahead, Mr Chee said the government will focus on “building more and building faster.” Around 55,000 BTO flats will be launched from 2025 to 2027 — 10 per cent more than the earlier target of 50,000. These will be spread across new estates such as Mount Pleasant, Woodlands North Coast, Sembawang North, and the former Keppel Club site. To further ease waiting times, about 4,500 new BTO flats with completion periods of less than three years will be launched this year, up from an earlier plan of 3,800. From 2026, HDB will offer around 4,000 such flats annually, exceeding earlier commitments of 2,000 to 3,000 per year. Private Housing Supply to Remain Steady The government also plans to sustain private housing supply. More than 25,000 units will be launched between 2025 and 2027 through the Government Land Sales programme. Together with 45,000 units already in the pipeline, over 70,000 new private homes are expected to be completed by around 2030. Policy Shifts for Singles and Higher-Income Families Currently, singles can only buy BTO or resale flats from age 35, while BTO applications are capped at a household income ceiling of S$14,000. The government is studying whether to lower the age threshold for singles and raise the income ceiling, so that more families and individuals can qualify for new flats. “To what extent we can make adjustments to these two (policies) will depend on what is the supply that we can introduce in the next few years,” Mr Chee said. He stressed that lowering the singles’ age limit or raising the income ceiling could increase demand, so supply must first be sufficient to support such moves. Stabilising the Resale Market On the resale market, Mr Chee acknowledged concerns over rising prices in recent years. Since late 2021, the government has introduced four rounds of cooling measures, including the most recent in August 2024, which tightened HDB loan limits to curb demand. The minister said the government’s aim was for resale prices to grow in line with household incomes, without excessive volatility. Recent data shows some moderation, with HDB’s resale price index registering its slowest quarterly growth in five years. Looking ahead, more BTO flats will hit the resale market as they reach their Minimum Occupation Period (MOP). About 13,500 flats will become eligible for resale in 2026, up from 8,000 this year, with the number rising further to 15,000 in 2027 and 19,500 in 2028. This, along with increased BTO supply, is expected to ease pressure on resale prices. Phasing Out the 15-Month Wait-Out Period One policy that could be reviewed soon is the 15-month wait-out period for private property owners before they can purchase a non-subsidised resale flat. Introduced in September 2022 to cool the market, the measure was described as temporary. “Once the market prices stabilise in the resale market, I think it (will be) timely for us to then consider removing this temporary cooling measure,” Mr Chee said.

Singapore aims to finalise the framework for the Voluntary Early Redevelopment Scheme (VERS) within the current term of government, which runs until September 2030. The scheme, first announced in 2018, is intended to rejuvenate older Housing Board (HDB) estates and provide residents with options before leases approach expiry. National Development Minister Chee Hong Tat, in his first major interview since taking office in May, said the government is working out key details — such as identifying potential sites, ensuring sufficient replacement homes, and designing “fair” packages for affected residents. VERS will begin with a small number of selected precincts in the first half of the next decade. Unlike the Selective En bloc Redevelopment Scheme (SERS), which is compulsory and limited to sites with high redevelopment potential, VERS will be offered when flats reach around 70 years of age, with residents voting on whether to proceed. Mr Chee noted that VERS is unlikely to offer the same financial upside as SERS, since flats involved will be older. Nevertheless, the scheme is seen as essential to avoid the disruptive scenario of mass lease expiries in the 2070s and 2080s. Redevelopment will be staged progressively over 20 to 30 years. Balancing VERS with HIP II While VERS is still being developed, the government is also enhancing the Home Improvement Programme (HIP) to ensure older flats remain liveable. HIP II, which kicks in when flats reach 60 to 70 years old, will be “more extensive” than the current programme. It will use new technologies such as microwave scanning to detect hidden spalling concrete and advanced corrosion-resistant repair methods. Mr Chee said these measures will allow flats to remain safe and comfortable until the end of their leases, even for residents in estates that do not opt into VERS. Importantly, HIP II and VERS will not be mutually exclusive. Some flats may undergo upgrading under HIP II before eventually entering VERS. Support for Private Estates The government is also looking at ways to help ageing private estates remain liveable. This includes extending programmes like the Enhancement for Active Seniors (Ease) — which provides subsidised senior-friendly fittings — to private properties until 2028. Authorities are also reviewing the Building Maintenance and Strata Management Act to better support condominium management corporations (MCSTs) in upgrading ageing facilities. However, government funding will be limited to shared and inclusive infrastructure, unlike public housing estates where amenities are open to all. A Long-Term Undertaking VERS is a complex and long-term policy, and Mr Chee emphasised that there is no need to scale it up until the late 2030s. Still, government agencies have already started laying the groundwork, and public engagement will be sought once policy parameters are established. “Our plan is to progressively offer VERS to selected estates in different parts of Singapore,” Mr Chee said. “This way, we can renew our older estates in an orderly manner, while ensuring Singaporeans continue to have quality homes to live in.” Challenges of VERS While VERS (Voluntary Early Redevelopment Scheme) offers an option for ageing HDB towns, flat owners are likely to face several challenges: 1. Uncertainty over Financial Compensation VERS packages are expected to be less generous than SERS because flats will be much older. Owners may worry whether compensation is sufficient to buy a comparable replacement home, especially in mature estates where prices are higher. 2. Market Value vs. Emotional Value Unlike SERS (where compensation is pegged to market value at announcement), VERS terms are not yet fully clear. Long-time residents may feel the payout undervalues their flat, especially if they have invested in renovations or have sentimental attachment. 3. Affordability of Replacement Homes Even with subsidies, upgrading to a newer flat may require additional cash or loans. Elderly owners nearing retirement might face challenges in financing a new purchase. 4. Disruption of Relocation Residents will need to move out of their familiar estates. This could be disruptive, especially for seniors who value community ties and proximity to amenities. 5. Uncertainty on Timing Owners may face long waiting periods and uncertainty about when (or if) their precinct will be offered the scheme. 6. Voting Outcome Risk VERS requires a majority vote by residents. Even if some owners want to take up the scheme, it may not proceed if overall support is lacking. 7. Impact on Resale Market For flats approaching 70 years, resale demand may weaken as buyers anticipate lease decay or uncertain VERS terms. Owners could face lower resale values before any VERS is confirmed. In short: the main challenges are financial sufficiency, relocation stress, uncertainty of timing and voting outcomes, and potential impact on resale value.

The Housing and Development Board (HDB) has seen a surge in interest for its July 2025 Build-to-Order (BTO) sales exercise, with over 22,000 applications received as of 5pm on Wednesday, July 30, according to National Development Minister Chee Hong Tat. This marks a significant increase from the 13,200 applications during the February launch earlier this year. A total of 5,547 flats have been offered across eight projects located in Bukit Merah, Bukit Panjang, Clementi, Sembawang, Tampines, Toa Payoh, and Woodlands — all aimed at catering to a wide range of home buyers with varying needs and budgets. In comparison, the February exercise saw 5,032 units launched. The median application rate for three-room and larger flats among first-timer families stands at 1.4, up from 1.1 in February. However, it remains lower than the application rates from last year’s three exercises, which ranged between 1.6 and 2.6. Prime Projects Continue to Attract Strong Interest Despite higher subsidy clawback rates introduced in this exercise, Prime Location Public Housing (PLH) projects remain highly popular. Four projects fall under the Prime category this round: Clementi Emerald – 12% subsidy clawback Toa Payoh Ascent Alexandra Peaks Alexandra Vista – all with 11% clawback These clawbacks are the highest to date, up from 9% in earlier launches. The increase reflects the additional subsidies granted to ensure that flats in highly desirable locations remain affordable and inclusive for Singaporeans. Nonetheless, demand remained robust. The four Prime projects received over 12,000 applications, nearly half of all applications in the current launch. Among them, Toa Payoh Ascent emerged as the most sought-after, drawing nearly 5,900 applicants for 741 flats. Property analysts attributed this to its central location, proximity to Caldecott MRT, and nearby top schools including CHIJ Primary and Secondary, and Raffles Girls’ School. Standard Projects and Singles See Strong Demand Outside the Prime category, Simei Symphony in Tampines proved the most popular Standard project. Located in the Simei estate, its five-room flats saw about eight first-time applicants vying for each of the 100 units available. The exercise also marked the rollout of new housing policy changes, including: Expanded Family Care Scheme to give priority to singles who apply to live with or near their parents. Increased allocation quota for second-timer families applying for 3-room or larger flats. Relaxation of deferred income assessment rules, allowing only one party in a couple to be a current or recent full-time student or NS man, instead of both. These changes appear to have contributed to continued strong interest among first-time singles, especially for two-room flexi flats across Singapore. Application Window Closing The July BTO sales exercise, which began on July 23, closed at 11:59pm on July 30. Minister Chee emphasized that the government remains committed to ensuring public housing remains accessible, affordable, and fair, particularly as Singaporeans continue to show robust interest in both mature and non-mature estate offerings.

Buying a Build-To-Order (BTO) flat from the Housing & Development Board (HDB) is a major milestone for many Singaporeans. Designed to provide affordable public housing, BTO flats are sold directly by HDB and are popular due to their lower prices compared to resale flats. However, purchasing one involves meeting specific eligibility criteria and following a detailed application process. Eligibility Requirements for BTO Flats Before applying for a BTO flat, you must meet the following requirements: 1. Citizenship At least one applicant must be a Singapore Citizen (SC). For couples or families, the other applicant must be either a Singapore Citizen or a Singapore Permanent Resident (SPR). 2. Age Applicants must be at least 21 years old. For unmarried or divorced singles, you must be 35 years old and above to buy a 2-room Flexi flat in a non-mature estate under the Single Singapore Citizen Scheme. 3. Family Nucleus You must apply under one of the following schemes: Public Scheme (e.g., with spouse, children, or parents) Fiancé/Fiancée Scheme Orphans Scheme Single Singapore Citizen Scheme (only for eligible singles) 4. Income Ceiling 2-room Flexi (non-mature estate): $7,000 3-room flat: $7,000–$14,000 depending on the project 4-room or larger: $14,000 (or $21,000 for extended families) 5. Property Ownership Must not own or have disposed of any private residential property (in Singapore or overseas) in the last 30 months. Must not own more than one HDB, DBSS or EC flat. Must not have bought more than two subsidised flats. Step-by-Step Guide to Buying a BTO Flat Step 1: Check for Upcoming Sales Launches HDB launches BTO flats four times a year (February, May, August, and November). You can view the launch details on the HDB website. Step 2: Ballot for a Flat Apply for a flat during the one-week application window. Submit your application online via HDB’s portal. Balloting is based on eligibility, priority schemes, and demand. Step 3: Receive Ballot Results Results are released approximately 2 months after the application period. If successful, you will receive a queue number to select a flat. Step 4: Book Your Flat Choose your preferred unit based on availability. Pay the Option Fee: $500 for 2-room Flexi $1,000 for 3-room $2,000 for 4-room and larger Step 5: Sign the Agreement for Lease About 4-6 months after booking, you will be invited to sign the lease. Pay the downpayment: Using CPF or cash (5% for HDB loan, 10% for bank loan) You must also pay stamp duties and legal fees at this stage. Step 6: Wait for Construction and Collect Keys Construction takes 3 to 5 years. You’ll be invited to collect the keys once the project is complete. Financing Options HDB Loan Up to 80% financing of flat price Must not own any private property in the past 30 months Household income ceiling: $14,000 (or $21,000 for extended families) Interest rate: 2.6% (pegged to CPF Ordinary Account + 0.1%) Bank Loan Up to 75% financing of flat price (with 5% cash downpayment) More stringent credit assessment Floating or fixed interest rates (typically lower than HDB loan initially) Read to compare HDB Loan or Bank Loan Grants Available Eligible first-timers can apply for the following CPF Housing Grants: Enhanced CPF Housing Grant (EHG): Up to $80,000, based on income level Grants are credited into your CPF OA account and used to offset the flat price Important Considerations Priority Schemes (like the Married Child Priority Scheme or Parenthood Priority Scheme) can increase your chances during balloting. Consider the location, amenities, waiting time, and future resale potential. Buying a BTO is a long-term commitment, and there is a 5-year Minimum Occupation Period (MOP) before you can sell or rent out the whole flat. FAQs about BTO Flats Question: I am an existing HDB flat owner. Can I still apply for new BTO flat?  Answer: Yes, existing flat owners can apply for BTO flats, but there are important conditions and restrictions: Eligibility Conditions for Existing Flat Owners: You must sell your existing flat within 6 months of collecting the keys to the new BTO flat. Ownership Restrictions You must not own any private property (local or overseas) or have disposed of any in the last 30 months before applying. Number of subsidised flats You must not have taken two previous subsidised housing grants/flats (e.g., BTO, SBF, resale flat with CPF grants). You can apply if you have received only one housing subsidy so far. Conclusion Buying a BTO flat in Singapore is a structured and subsidized pathway to home ownership, especially for young couples and families. While the process involves eligibility checks and a bit of luck during balloting, it remains one of the most affordable options to own a home in Singapore. Be sure to stay updated on launch dates, assess your financial readiness, and understand the schemes and grants that can support your purchase.

When purchasing an HDB flat in Singapore, one of the key financial decisions buyers must make is whether to finance their home with an HDB concessionary loan or a bank loan. Both options come with distinct advantages and trade-offs, and the best choice depends on your financial situation, risk appetite, and long-term plans. Here's a breakdown to help you decide. 1. Eligibility HDB Loan Only Singapore Citizens are eligible (or at least one buyer must be a citizen in a joint application). Monthly household income must not exceed $14,000 ($21,000 for extended families). Must not own any private residential property in the last 30 months before the loan application. Must not have taken two or more previous HDB loans. Bank Loan Open to all buyers, including Permanent Residents and those buying Executive Condominiums (ECs). No income ceiling or property ownership restriction. 2. Downpayment HDB Loan Requires only 5% downpayment, which can be paid fully using CPF Ordinary Account (OA). No cash required upfront unless CPF is insufficient. Bank Loan Requires at least 25% downpayment, where 5% must be paid in cash and 20% can be from CPF OA. Higher upfront cost and stricter CPF usage rules. 3. Interest Rates HDB Loan Fixed rate at 2.6% per annum, pegged at 0.1% above the CPF OA interest rate. Stable and predictable, unaffected by market fluctuations. Bank Loan Typically lower at first (as low as 1.6%–3.5%), but can fluctuate with market rates (SORA or fixed rate packages for 1–5 years). May increase over time, introducing long-term uncertainty. Fixed-rate deals often carried a premium—3% to 4.5% was common throughout much of Year 2022. 4. Loan Tenure & Amount HDB Loan Maximum tenure: 25 years or until the borrower is 65 years old, whichever is shorter. Loan-to-Value (LTV) limit: up to 80% of the purchase price or valuation (whichever is lower). Bank Loan Maximum tenure: 30 years for HDB flats. LTV limit: up to 75% (with stricter criteria for subsequent loans). Stricter Total Debt Servicing Ratio (TDSR) applies. 5. Flexibility and Repayment HDB Loan More flexible repayment options. No penalty for early repayment. You can clear your housing loan and save the interest fees. Easier to defer or adjust repayments during financial hardship. Bank Loan Less flexibility. Early repayment penalties (typically 1.5%) if within the lock-in period. Refinancing options available but may incur fees. 6. Switching Between Loans You can switch from HDB loan to a bank loan later, often to take advantage of lower interest rates. You cannot switch from a bank loan to an HDB loan. Conclusion: Choose HDB Loan or Bank Loan? Criteria Choose HDB Loan If... Choose Bank Loan If... Stability You prefer predictable fixed payments You can manage fluctuating interest rates Upfront Cost You want to minimize initial cash outlay You have enough cash for the downpayment Flexibility You may need repayment flexibility You are confident in consistent income Long-Term Plan You plan to hold the flat long term You plan to refinance or sell earlier Final Tip: Consider starting with an HDB loan for security and later refinance with a bank loan when you're financially stable and ready to take on more risk for lower rates.