During the National Day Rally 2024, Prime Minister Lawrence Wong addressed critical issues in Singapore’s housing market, highlighting the rise in housing prices due to the disruption in the construction industry during the Covid-19 pandemic. This disruption led to a bottleneck in the supply of new residential units, driving up prices. The median price of four-room HDB resale flats relative to median annual household income currently stands at 4.8, similar to 2014 levels. While high, this ratio is still lower compared to other global cities like London, Sydney, and Hong Kong.
To address these challenges, the Government has implemented cooling measures to stabilize the market and ramped up the supply of new housing. The Ministry of National Development has committed to launching 100,000 Build-To-Order (BTO) flats between 2021 and 2025, with over 80,000 units already launched as of December 2024. Efforts are also underway to reduce waiting times for BTO projects to less than three years.
Despite rising HDB resale prices, most transactions remain within affordable levels. Million-dollar transactions represent only 3.0% of all HDB resale transactions in the first half of 2024, with 41.7% priced between $400,000 and $600,000. This reflects ongoing affordability for the majority of buyers.
Prime Minister Wong announced a new flat classification system, replacing the current mature and non-mature estate categories with Prime, Plus, and Standard classifications. Flats in desirable locations will fall under Prime and Plus categories with stricter resale conditions, while Standard flats will remain more flexible. Additional subsidies will be provided to maintain affordability.
For the elderly, the government will expand Community Care Apartments (CCA), designed with senior-friendly features and integrated care services. For singles, a policy shift in 2025 will grant them similar priority access as married couples for BTO flats near their parents, recognizing the importance of family support networks.
The government also plans to increase the Enhanced CPF Housing Grant for first-time buyers, particularly those from lower-income groups, to alleviate the financial burden of homeownership.
Urban planning in Singapore continues to focus on social integration through a balanced mix of public and private housing. The government is making prime locations more inclusive by introducing public housing options in traditionally private developments. The vision for Singapore’s future cityscape includes waterfront revitalization projects such as the Kallang Alive Masterplan, Nicoll, Kampong Bugis, Marina South, and the Greater Southern Waterfront. These projects will introduce new residential and recreational spaces, making central living more accessible.
These developments are part of long-term strategic plans to enhance the quality of life and ensure Singapore’s continued success on the global stage.
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Prepared By:
Mohan Sandrasegeran
Head of Research & Data Analytics
