Budget 2025 prioritizes affordability, accessibility, and sustainability in both public and private housing. With an emphasis on homeownership support, climate-friendly initiatives, and senior-friendly modifications, the government aims to provide inclusive policies that cater to all Singaporeans.

Public Housing – Expanding Supply & Affordability

The government is expanding housing options to improve affordability, especially for first-time homebuyers. Prime Minister Lawrence Wong noted that application rates for Build-To-Order (BTO) flats have stabilized and are now lower than pre-pandemic levels, indicating a more balanced supply-demand situation.

To ensure sufficient housing stock, more than 50,000 new HDB flats will be launched islandwide over the next three years. These developments, located in key estates such as Woodlands, Bayshore, and Mount Pleasant, aim to meet the diverse housing needs of Singaporeans.

For those seeking faster access to a home, HDB is prioritizing shorter waiting times. In 2025, about 3,800 flats with waiting periods of less than three years will be launched, accounting for approximately 20% of the total BTO supply.

Recognizing the strong interest in completed flats, the government will introduce another SBF exercise in 2025, providing homebuyers with additional options.

To further assist lower-income families, the Fresh Start Housing Scheme grant has increased from S$50,000 to S$75,000. This initiative, previously limited to second-timer families, now extends to first-time families living in rental housing.

Private Housing – Sustainability & Senior-Friendly Measures

Enhancements to Climate Vouchers

To support sustainability, the government is enhancing the Climate Friendly Households Programme. HDB households will receive an additional S$100 in Climate Vouchers, raising the total to S$400.

For the first time, private property households will also receive S$400 in Climate Vouchers, expanding support for sustainable living across Singapore.

Enhancements to Senior-Friendly Home Modifications

The Enhancement for Active Seniors (EASE) programme will be extended until 2028. Previously available only to HDB flats, it will now include private property households, allowing more seniors to age safely and independently at home.

Why It Matters

• Improved Affordability: Stabilized application rates provide more homebuyers with the opportunity to secure a flat.

• Faster Access to Housing: The introduction of a second SBF exercise in 2025 increases the chances of obtaining a ready-to-move-in unit.

• Balanced Housing Supply: The ramp-up in BTO launches prevents excessive price increases and meets long-term housing needs.

• Sustainability & Inclusivity: Expanding Climate Vouchers and senior-friendly modifications ensures equitable access for all Singaporeans.

Budget 2025 reinforces the government’s commitment to affordable, sustainable, and inclusive housing policies, ensuring Singaporeans have more opportunities for homeownership while fostering a livable and resilient community.

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Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email: mohan@sri.com.sg