SINGAPORE: Just over a year since Singapore announced an overhaul of its decades-long approach in dividing housing estates into mature and non-mature towns, the Housing and Development Board (HDB) on Wednesday (Oct 16) launched the first batch of flats under the new Standardluck9, Plus and Prime classification.

Will buyers be drawn to the 312-unit Crawford Heights Prime project in Kallang-Whampoa, given its “superior locational attributes”, new open-concept "White Flat" layout, close proximity to the MRT station and the city centre, or opt for one of the seven Plus projects in "choicer" locations, with good connectivity and surrounding amenities. Or perhaps they'd choose from the seven Standard projects, which form the largest category of Build-to-Order (BTO) flats at 4,988 units.

In all, HDB is offering a bumper crop of 8,573 flats in nine towns in the October BTO launch. The BTO flats are distributed across 15 projects, which is by far the largest in a single sales exercise since the BTO system was introduced. For the first time, singles will be allowed to apply for two-room Flexi flats in all locations across Singapore. Previously, they were only allowed to apply for two-room Flexi flats in non-mature estates.

Prospective buyers have a lot to think about. A lot of that will depend on their priorities, long-term plans and personal circumstances.

Are they willing to pay more to stay near the city, or in a well-connected location? The Prime and Plus flats come with a 10-year minimum occupation period (MOP), double the typical five years, so prospective buyers will need to take into consideration the possibility of things such as divorce or changes in family size. There are also rental prohibitions, tighter resale restrictions and a 6 to 9 per cent subsidy clawback to consider.

Buyers who face cost constraints or value flexibility may lean toward Standard flats, which have fewer restrictions.

Public housing is sold at concessionary prices to ensure that housing is affordable to the masses. Buyers' flat choices vary not just by the type of unit but also by location.

In the old town-based framework, mature towns were in areas that were more built-up and had high demand, but they faced limitations in available land for new public housing developments. Meanwhile, non-mature estates were in relatively newer towns with more land for future public housing demand.

There were 15 mature towns and 12 non-mature towns. Over time, as some non-mature towns became more developed, they became more densely built up. As of 2023, non-mature towns housed a larger stock of 593,554 dwelling units, compared with 523,843 units in mature towns.

Non-mature towns also accounted for a larger volume of resale transactions compared to mature towns, although average resale prices in those locations tended to trend behind those in the mature estates.

In 2024luck9, for example, the average resale price (based on records up to October) is estimated at S$580,124 in non-mature towns and S$647,766 in mature towns, which shows a wedge of S$67,642. 

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