In 2025, Singapore will see the launch of 19,600 Build-to-Order (BTO) flats as part of the government’s ongoing efforts to address rising housing demand and ensure affordability. Among these, 3,800 flats – nearly 20% – will feature shorter waiting times of under three years, announced Minister for National Development Desmond Lee in an interview with CNA Digital, The Straits Times, and Lianhe Zaobao.
Additionally, the Housing Development Board (HDB) will conduct its largest-ever Sale of Balance Flats (SBF) exercise in February 2025, offering more than 5,500 units. Combined, these initiatives will bring the total number of flats available for sale this year to over 25,000, marking a significant increase in supply under the revised flat classification framework of Prime, Plus, and Standard flats.
The projects span locations such as Kallang/Whampoa, Queenstown, Bukit Merah, Mount Pleasant, Woodlands, Yishun, and Sembawang, addressing diverse housing needs across the city-state.
Surpassing Housing Commitments
The government has exceeded its earlier pledge to launch 100,000 flats between 2021 and 2025, with about 102,300 units rolled out by the end of this year. “We have ramped up supply quite dramatically,” noted Mr Lee, adding that the government aims to launch an additional 30,000 flats by 2027, pushing the total to 130,000 over six years.
Tackling Pandemic-Induced Challenges
The expanded supply also addresses delays caused by the COVID-19 pandemic, which disrupted construction timelines and spurred a surge in housing demand. Nearly five years later, the backlog of delayed projects has been cleared, with the final batch of pandemic-affected flats set to be handed over to owners within weeks.
“Average application rates for first-time buyers have fallen across all flat types, from 3.7 in 2019 to 2.1 in 2024,” said Mr Lee. The rate for three-room and larger flats also dropped significantly from 4.0 to 2.2 over the same period.
The number of flats with shorter waiting times has increased steadily, from 732 in 2023 to 2,876 in 2024, and will rise further to 3,800 this year.
Strengthening Housing Affordability
Acknowledging rising resale prices, the government has introduced cooling measures and enhanced grants for first-time buyers. “We are not averse to putting in new measures to ensure that the property market stays aligned with economic fundamentals,” Mr Lee stated.
However, he emphasised the need to let existing measures take effect while factoring in the upcoming surge in housing supply and uncertainties in the global economy.
New Initiatives for Singles
From mid-2025, singles will be included in schemes prioritising flats near or with family members under the new Family Care Scheme (FCS), which replaces the previous schemes favouring married couples and their parents. One in four flats in February’s launch will cater to singles, reflecting the government’s commitment to their housing needs.
“Will there be further tweaks and changes along the way? I’m sure there will be … let’s see how we can further optimise,” said Mr Lee.
The number of queue numbers issued for February’s BTO launch will also be reduced from three times to two times the flats available, improving selection certainty for buyers. Stricter penalties introduced in October 2023 have already reduced non-selection rates from 40% to about 19%.
“The aim is to help genuine home buyers, particularly first-timers, to be able to get their flats,” Mr Lee explained.
Looking Ahead
The government plans to unveil the 2025 Draft Masterplan later this year, which will outline land use and development strategies for the next 10 to 15 years. Unlike previous iterations, this plan will focus on sustainability, heritage, and climate resilience rather than population growth.
With these initiatives, Singapore remains committed to ensuring housing accessibility and affordability, reinforcing the government’s proactive stance in navigating the evolving demands of the housing market.
