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Guide to new HDB BTO categories: Plus, Prime and Standard flats
By Beansprout • 22 Aug 2023 • 0 min read
At the National Day Rally 2023, Prime Minister Lee Hsien Loong announced a new classification model that will be used for HDB BTO projects, including the introduction of new Plus flats.
In this article
What happened?
At the National Day Rally 2023, Prime Minister Lee Hsien Loong announced several key changes to ensure that public housing remains accessible and affordable for Singaporeans of all income groups.
The Housing Development Board (HDB) will introduce a new classification model that categorises HDB Build-To-Order (BTO) projects into one of three categories: (i) Standard (ii) Plus (iii) Prime.
Currently, HDB BTO projects are launched according to the mature or non-mature classification model, which has been in place since 1992.
If you are wondering how the introduction of new ‘Plus’ BTO category will affect you as a homebuyer, read on to find out!
What is HDB’s New BTO Classification Model?
the Housing Development Board (HDB) will introduce a new classification model that categorises Build-To-Order (BTO) projects into one of three categories:
- Prime flats
- Plus flats
- Standard flats
What is the HDB Prime flat?
Based on the new framework, ‘prime’ flats would be found in projects that are centrally located and close to the city centre.
These flats–which are currently offered under the existing Prime Location Public Housing (PLH) model–will have the tightest restrictions in terms of minimum occupation period (MOP), subsidy clawback, and restrictions at the point of resale.
The flats launched under the PLH model since November 2021 have been subjected to the following:
- 10 year MOP
- 6% subsidy recovery upon sale of flat
- $14,000 household income ceiling for buyer
If you are a private home owner, there will be a 30-month waiting period before you are allowed to buy these flats in the open market.
Examples of HDB prime flats include BTO projects in the Kallang/Whampoa or Queenstown area.
What is the HDB Plus flat?
In the next category, ‘plus’ flats refers to flats offered in attractive locations near MRT stations or town centres.
While they may not be located as near to the city centre as compared to ‘prime’ flats, they are still highly sought after as compared to ‘standard’ flats.
Therefore, these ‘plus’ flats will come with restrictions albeit at a reduced level.
If you are a private home owner, there will be a 30-month waiting period before you are allowed to buy these flats in the open market.
These flats essentially represent a via media option in between the ‘Prime’ and ‘Standard’ categories based on attractiveness in terms of location.
One example cited by PM Lee is the upcoming BTO cluster in Bayshore which will be near an MRT station, mall, and community centre.
What is the HDB Standard flat?
Lastly, ‘standard’ flats refer to flats from BTO projects offered in all other locations, which will continue to make up the majority of the national housing supply.
These flats have no restrictions at the point of resale and will be the only category of BTO flats with a 5-year MOP going forward.
Examples of such BTO flats would most likely be found in less centrally located areas such as Jurong West, Tengah, and Yishun.
How does HDB’s New Classification Model work?
HDB’s new classification model
| Type of HDB flat | Standard | Plus | Prime |
| Location | All other locations | Within mature towns; may be near transport nodes such as MRT stations or town centres | Prime or centrally located |
| Minimum occupation period | 5-year MOP | 10-year MOP | |
| Subsidies | Standard subsidies | More subsidies | Most subsidies |
| Subsidy recovery | No | Yes (albeit lower than Prime) | Yes |
| Resale conditions | No | Some BTO eligibility conditions on resale, including household income ceiling ($14,000) | Full BTO eligibility conditions on resale, including household income ceiling ($14,000) |
| Rental | Allowed to rent out whole flat after 5 years | Not allowed to rent out whole flat, can only rent out individual rooms after 10 years | |
| Source: HDB | |||
What would Beansprout do?
While the classification model has changed, the principles for buying big ticket items in the realm of personal finance are still the same.
At the end of the day, you still have to manage your finances well through prudent saving and investing in order to afford the purchase of your flat.
With the government taking bold steps to mitigate the windfall or ‘lottery’ effect from the sale of BTO flats, it will be helpful to calibrate our expectations of what we are getting from purchasing a HDB flat.
If you and your partner view getting a BTO flat as a home to stay in rather than an investment, then the 10-year MOP will not be a big issue.
When you are ready to get your own space to call home, do check out our step-by-step guide to buy your HDB BTO flat.
With the recent changes to the HDB BTO application process, read our guide to the HDB Flat Eligibility Letter (HFE).
Lastly, if you are deciding between a HDB loan or a bank loan, find out how we are deciding.
Join the Beansprout Telegram group or Facebook group to get more insights on how you can grow your wealth.
This article was first published on 22 August 2023 .
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