The Government is prepared to further increase the supply of new Build-To-Order (BTO) flats beyond its current target of 55,000 units between 2025 and 2027, should demand remain strong. National Development Minister Chee Hong Tat said the Housing & Development Board (HDB) has been asked to go beyond the existing target to ensure that housing supply keeps pace with demand and remains accessible to Singaporeans.

Speaking to the media on Thursday (Jan 8), Mr Chee said a robust pipeline of new flats would help improve affordability and ease pressure on the resale market, as some demand would be diverted away from the secondary market.

“Having a strong supply will make BTO flats more accessible and help to moderate resale flat prices,” he said.

Slower Resale Price Growth Signals Early Progress

Recent data suggests early signs that these measures are having an impact. HDB resale prices recorded their fourth consecutive quarter of slower growth in the fourth quarter, following a 0.4 per cent increase in Q3. Year on year, the resale price index rose at a slower pace compared with the 2.6 per cent increase in the same period last year.

For the whole of 2025, resale prices rose by 2.9 per cent—less than a third of the 9.7 per cent growth recorded the year before, and the slowest annual increase since 2019, when prices edged up by just 0.1 per cent.

Mr Chee noted that with more flats expected to reach their Minimum Occupation Period (MOP) in 2026, additional supply will enter the resale market, further moderating prices.

Steady Pipeline of New BTO Launches

HDB will launch about 19,600 BTO flats across three sales exercises in February, June and October this year—similar to the 19,700 flats launched last year. More than 4,000 of these units will have a waiting time of under three years.

The upcoming launches will include a mix of Standard, Plus and Prime flats in locations such as Ang Mo Kio, Bukit Merah and Tampines, catering to a wide range of household needs and budgets.

HDB is currently on track to offer about 55,000 flats between 2025 and 2027, with 127 projects under construction—up from 110 projects a year ago.

“With these developments, we hope to make further inroads into improving accessibility and affordability of HDB BTO flats and resale flats,” Mr Chee said, adding that there have been “some initial signs of progress in both areas”.

Demand Normalising After Pandemic Peak

Application rates for BTO flats have moderated significantly since the Covid-19 pandemic, when demand peaked at around seven applicants per flat. In 2025, application rates have eased to between 1.1 and 1.9 times, reflecting a more balanced market.

Mr Chee reiterated that BTO flats will continue to be priced based on income levels, ensuring that the housing price-to-income ratio and mortgage servicing ratio remain affordable for buyers.

On possible policy changes such as raising the BTO income ceiling, lowering the age limit for singles, or removing the 15-month wait-out period for private property owners, Mr Chee said the Government is monitoring market conditions closely.

“We want to make sure that when we make such changes, market conditions are right,” he said, warning that insufficient supply could lead to longer waiting times for homebuyers.

Completion Milestones and Estate Development

In 2025, HDB completed about 19,600 flats across 28 housing projects, with a median waiting time of about four years. Three projects—Parc Clover @ Tengah, Hougang Olive and Yishun Boardwalk—were among those with shorter waiting times.

Several projects, including MacPherson Weave and Costa Grove, were completed about three months ahead of schedule. HDB also completed the final four housing projects in Bidadari, marking the completion of all 12 public housing developments in the 93-hectare estate since its first launches in 2015. In total, 8,872 homes have been delivered in Bidadari.

Upgrading Ageing Flats and Private Housing Supply

To address ageing flats, the Government will continue with the Neighbourhood Renewal Programme and Silver Upgrading Programme, with more details on the next tranche of the Home Improvement Programme (HIP) to be released later. Mr Chee acknowledged challenges in securing the required 75 per cent support for HIP works in some blocks and said stakeholders will be consulted on improving the process.

On the private housing front, about 12,000 private homes are expected to be launched in 2026—similar to 2025 levels and around 50 per cent higher than in 2024. Mr Chee added that if demand remains strong, more land can be released through both confirmed and reserved sites under the Government Land Sales programme.

“We do have more land that we can release,” he said, underscoring the Government’s commitment to maintaining a steady and responsive housing supply.

Private home prices will rise gradually and not escalate beyond control when there is ample land supply.