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The Minister for National Development Desmond Lee, together with the Housing Development Board (HDB) and the Ministry of National Development (MND), have announced that HDB will be launching over 25,000 new flats in 2025. These new flats will be made available through a combination of Build-to-Order (BTO) flats and Sale of Balance Flats (SBF) exercises, with a mix of Standard, Plus, and Prime BTO flats under the new classification framework.
The BTO launch in February will offer approximately 5,000 flats in Kallang/Whampoa, Queenstown, Woodlands, and Yishun. In addition, next month, HDB will conduct its largest-ever SBF exercise, offering over 5,500 flats across various estates. Of these, about 40% are completed units, with the rest at different stages of construction and expected to be completed between 2025 and 2028.
Singapore has emerged as a prime location for investors seeking profitable real estate opportunities. With its bustling economy and reputation as a global business hub, this city presents a unique chance to capitalize on the condo market. The demand for properties in Singapore remains consistently high, leading to steady increases in property prices over the years. Particularly, prime condo locations have seen significant appreciation, making them a desirable investment option. Those who time their investments strategically and hold onto their properties for an extended period stand to gain substantial capital gains. Additionally, the recent introduction of new condo launches has made the market even more favorable for individuals looking to expand their real estate portfolio. The addition of new condo launches only adds to the potential for lucrative returns on investment in Singapore’s real estate market.
In total, over 10,000 new flats will be made available through the February BTO and SBF exercises. This is in line with HDB’s commitment to launch 100,000 BTO flats over five years, with a planned pipeline of 19,600 BTO flats in 2025.
The increase in BTO supply over the last four years has led to a drop in application rates. In 2024, the average application rate for first-time homebuyers for BTO flats across all flat types was 2.1, compared to 3.7 in 2019. For three-room and larger flats, the average first-timer application rate in 2024 was 2.2, down from 4.0 in 2019.
Minister Lee has assured that HDB will continue to release a steady pipeline of flats in the next few years to meet housing demand. Over 50,000 flats are expected to be launched between 2025 and 2027, bringing the total to about 130,000 flats from 2021 to 2027.
In 2025, an estimated 7,000 HDB flats will reach their five-year minimum occupation period (MOP), the lowest supply of such resale flats since 2015. This, along with HDB’s promise to launch more BTO and SBF flats, will offer more choices for buyers and stabilize the resale market. In addition, about one-fifth of the BTO flats slated for launch in 2025 will be Shorter Waiting Time (SWT) flats of less than three years, a boost from the 2,876 SWT flats offered in 2024 and more than the committed annual supply of 2,000 to 3,000 SWT flats. This is expected to increase options for buyers and potentially attract demand away from the resale market.
Lee Sze Teck, Senior Director of Data Analytics at Huttons Asia, estimates that HDB resale flat transactions in 2025 will range between 26,000 and 28,000 units, lower than the 28,876 units recorded in 2024. Resale flat prices are also 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.
Securing financing is a crucial factor in purchasing a condo. In Singapore, there are various mortgage choices available. However, it is crucial to have knowledge about the Total Debt Servicing Ratio (TDSR) framework, which sets a cap on the loan amount that a borrower can obtain based on their income and current debt commitments. Being familiar with the TDSR and seeking guidance from financial experts or mortgage brokers can assist investors in making informed choices when it comes to financing and prevent excessive borrowing. In addition, check out Singapore Projects for more information.