Budget 2025, A More Accessible Public Housing Landscape on the Horizon: Commentary by ERA

Singapore, 19 February 2025 –

1. Over 50,000 new homes to be launched over the next three years

While not a new announcement, the government reaffirms its intentions to ramp up its Build-to-Order (BTO) supply over the next three years to meet housing demand. This will be driven by new developments in Woodlands, Bayshore and Mount Pleasant.

In 2025, 3,800 flats, some 20% of the total supply, will feature shorter wait times of three years or less. Additionally, there are plans to hold a second Sale of Balance Flats (SBF) exercise later this year.

“The ramp-up in BTO supply could help ease housing demand in Singapore, but it will take some time for HDB price growth to slow to a more sustainable price.

We believe many buyers will be drawn to attractive sites like Bayshore and Mount Pleasant. For instance, Mount Pleasant may be seen as an extension of the Toa Payoh housing estate, providing more options for buyers interested in that area. This could also help alleviate housing demand in Toa Payoh, which is home to many million-dollar flats.

While these initiatives are welcome, this ramp in BTO supply may not be able to meet immediate housing needs. Since January, 163 million-dollar flats have been transacted, with 94% located in mature estates. These flats are also likely to be launched in phases, which adds to the construction timeline. Moreover, buyers who have more urgent needs for a HDB flat in these locations still look towards resale flats.” said Eugene Lim, KEO, ERA Singapore

2. Fresh Start Housing Scheme

To better support vulnerable, lower-income families in achieving stability and upward mobility, the Fresh Start Housing Scheme will be further enhanced to aid second-timer families with children in transitioning from public rental flats to homeownership.

Moving forward, the current grant amount for eligible families to buy a new Standard two-room Flexi or Standard three-room flat on a shorter lease will be increased from $50,000 to $75,000. Additionally, the Fresh Start scheme will be extended to first-timer families living in public rental flats, allowing them to purchase shorter-leased subsidised flats.

“The Fresh Start Housing Scheme is a great initiative to promote greater equitability for low-income Singaporeans to achieve homeownership. The greater subsidy and the lower cost of shorter-leased homes will make homeownership more accessible to low-income Singaporeans.”

For media enquiries, please contact:

Yue Kai Xin, Press Relations, ERA Singapore

Email: [email protected]