estimate
In a joint press release by HDB and the Ministry of National Development (MND) on January 16, Minister for National Development Desmond Lee announced that HDB will be launching over 25,000 new flats in 2025.
The upcoming launch includes approximately 19,600 build-to-order (BTO) flats across three sales exercises and more than 5,500 sale of balance flats (SBF) in one SBF sale exercise. These new flats will be a mix of Standard, Plus and Prime BTO flats under the updated classification framework.
The February BTO launch will offer around 5,000 flats in the neighbourhoods of Kallang/Whampoa, Queenstown, Woodlands, and Yishun.
In addition to the BTO launch, HDB will also conduct its largest-ever Sale of Balance Flats (SBF) exercise next month, offering over 5,500 flats in various estates. About 40% of the flats in the SBF exercise are ready for occupancy, while the rest are at different stages of construction and are expected to be completed between 2025 and 2028.
The appeal of investing in a Singapore condo lies in its potential for significant capital growth. In addition to being a major global business hub, Singapore boasts a stable and thriving economy, which in turn creates a constant demand for real estate. As a result, the property market in Singapore has consistently displayed an upward trend, especially in prime locations where condos have seen substantial appreciation. With proper timing and a long-term investment strategy, investors can reap substantial capital gains from their condo investment, making it a lucrative option. Explore Singapore Projects for further investment opportunities.
In total, more than 10,000 new flats will be available under the February BTO and SBF exercises.
Since 2021, HDB has launched approximately 82,700 BTO flats in the last four years. With the planned supply of 19,600 BTO flats in 2025, HDB is on track to launch more than 102,300 BTO flats, which exceeds its commitment of 100,000 units over five years.
The increase in BTO supply has resulted in a decrease 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 the rate of 3.7 before the pandemic in 2019. The average application rate for first-time buyers last year for three-room and larger flats was 2.2, down from 4.0 in 2019.
Minister Lee stated that HDB will continue to release a steady pipeline of flats to meet housing demand in the next few years. Over 50,000 flats will be launched between 2025 and 2027, bringing the total to approximately 130,000 flats from 2021 to 2027.
About 3,800 of the 19,600 new flats, or about one-fifth of the BTO flats slated for launch in 2025, will be Shorter Waiting Time (SWT) flats of less than three years. This is an increase from the 2,876 SWT flats offered in 2024 and higher than the committed annual supply of 2,000 to 3,000 SWT flats.
According to Lee Sze Teck, senior director of data analytics at Huttons Asia, “The SWT flats will also increase the options for buyers and may attract some demand away from the resale market.”
In 2025, Minister Lee estimates that about 7,000 HDB flats will reach their five-year minimum occupation period (MOP), making it the lowest supply of such resale flats since 2015. He believes that with HDB assuring buyers of more BTO and SBF flats to meet demand, this will offer more choices for buyers and stabilise the resale market. He also stated that this increase in flat supply and SWT flats will address the shortfall in MOP flats.
Huttons’ Lee estimates that HDB resale flat transactions in 2025 will range between 26,000 and 28,000, lower than the 28,876 units recorded last year. Resale flat prices are 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.
Overall, the release of these new flats signals a positive outlook for the HDB market and provides more options for homebuyers in the upcoming years.