If you’re thinking about buying a new HDB flat, there’s some big news you need to know about. Starting in the second half of 2024, the way HDB classifies Build-To-Order (BTO) flats is getting a makeover. Say goodbye to the old “mature” and “non-mature” estate labels—now, flats will be classified as Standard, Plus, or Prime. This change is all about making it easier for us to understand the true value of each flat based on its location and the amenities around it. So, let’s dive into what these new categories mean and how they could affect your home-buying plans.
Why the New System?
For a long time, HDB flats were classified based on whether they were in a mature or non-mature estate. Mature estates were considered more desirable because they had better infrastructure and amenities. But over the years, even non-mature estates have caught up, making the old labels less relevant.
During the National Day Rally in 2023, the government introduced a new system to better reflect the actual value of different flats. In a nutshell, this new classification—Standard, Plus, and Prime—is designed to give us a clearer idea of what we’re getting in terms of location and amenities.
Prime Minister Lawrence Wong also addressed this change in his National Day message in 2024. He acknowledged concerns about housing affordability and shared that new measures, like additional cooling measures and ramping up the supply of new flats, are helping to stabilize the market. He mentioned:
“In October, HDB will launch the first batch of flats under the new Standard, Plus and Prime framework. Flats in the Plus and Prime areas will now be priced more affordably, as they will receive heavier subsidies. But to keep the system fair, the additional subsidies will have to be returned to HDB when the flats are resold later.”
So, what exactly do these new categories mean for you?
What Are Standard, Plus, and Prime Flats?
- Standard Flats: These are the most common type of flats, available all over the island. They come with the usual subsidies and conditions that most of us are already familiar with. If you’re looking for the most affordable option, Standard flats are your go-to. They come with a 5-year Minimum Occupation Period (MOP), which means you’ll need to live in the flat for at least five years before you can sell it.
- Plus Flats: This is where things get interesting. Plus flats will be located in more desirable areas, like near MRT stations or town centers. To make them affordable, they’ll come with extra subsidies. But there’s a catch—these flats will have stricter conditions. For example, you’ll need to live in your Plus flat for at least 10 years before you can sell it, and when you do, some of the subsidy will need to be paid back to HDB. Plus, you won’t be able to rent out the entire flat even after meeting the MOP.
- Prime Flats: Prime flats are in the choicest locations, like the city center or areas close to major amenities. They come with the most subsidies to keep them within reach, but also the strictest conditions. Like Plus flats, you’ll need to live in them for at least 10 years, and there will be tough resale conditions, including a subsidy clawback and limits on who can buy them on the resale market.
How Does This Affect You?
If you’re planning to buy a BTO flat, these new categories give you more options, depending on your needs and budget:
- Affordability: Standard flats are the most budget-friendly, while Plus and Prime flats are priced higher due to their prime locations. But thanks to the extra subsidies, these higher-priced flats are still within reach for many.
- Resale Rules: Plus and Prime flats come with stricter rules when it comes to selling them. If flexibility is important to you—like being able to rent out your flat or sell it sooner—a Standard flat might be the better choice.
- Long-Term Commitment: Both Plus and Prime flats require a 10-year MOP, so be ready for a longer stay before you can move on to something else.
Good News for Singles
There’s also some good news if you’re single. The new system means that singles can now apply for 2-room Flexi flats in any location, whether it’s Standard, Plus, or Prime. This is a big change from the old system, where singles could only apply for 2-room Flexi flats in non-mature estates.
What’s Next?
As Singapore continues to develop, this new classification system is all about giving us more options while keeping homeownership affordable and fair for everyone. Whether you’re buying your first flat or looking to upgrade, it’s important to understand what each category offers so you can make the best choice for your future.
Keep an eye out for more details as we get closer to the launch of these new classifications in the second half of 2024. With the first batch of flats under this new framework expected in October, it’s an exciting time to be in the market for a new home!
