HDB To Launch A Few Thousand More BTO Flats In 2020 Amidst Rise In Demand Due To New Grants

2019 feels like a great year for those interested in getting a BTO.

In September, it was announced that there would be higher income ceilings and enhanced housing grant for HDB flat buyers.

Besides that, it was also announced that some BTO flats launched will face the waterfront.

And just when you think it can’t get any better…

HDB will be expected to launch up to 3000 more BTO flats in 2020. 

That may mean that Singaporeans can expect cheaper, nicer and more housing options.

A Greater Demand For Public Housing 

Eligible first-time homebuyers can benefit from the increased housing subsidies for their first HDB, enjoying up to $80,000 in grants when they buy a new flat and up to $160,000 in grants when they buy a resale flat in the open market.

Income ceilings for HDB flats and executive condominiums have been raised by $2,000 to $14,000 and $16,000 respectively.

With these changes in place, a greater demand for public housing is expected, noted the Minister for National Development Lawrence Wong.

Hence, the increase in BTO flats in 2020.

More BTOs = More Demand and Housing Options? 

Between 16,000 and 17,000 BTO flats will be launched next year, an increase from the 14,600 flats this year.

The new flats will be available in Sembawang and Toa Payoh next February. In May, more flats will also be launched in Choa Chu Kang, Tengah, Pasir Ris and Tampines.

Some experts have said that the increase in flat supply will offer more housing choices for home seekers amid increased demand.

However, some were more cautious.

Huttons Asia director of research Lee Sze Teck mentioned that the expected increase in demand could potentially be met by unsold BTO flats from earlier launches.

Head of research at OrangeTee & Tie Christine Sun said that more than 23,000 HDB flats will be reaching their minimum occupation period next year and which means that they can be sold on the open market.

“The increased pressure may have some downward pressure on prices of new resale flats,” she said.

 Upgrading Of HDB Estates 

Mr Wong shared that besides ensuring that houses are affordable, the government is also investing significantly in the upgrading of HDB estates.

They have spent about $3 billion on various upgrading programmes over the last five years.

“In the coming years, we will continue to do more to provide better, greener and smarter homes across all HDB precincts,” he added.

Lease Buyback Scheme (LBS) 

The Lease Buyback Scheme (LBS) helps seniors supplement retirement income and age in place.

It has nearly double in take-up rate to around 1,500 households this year. The LBS was even extended to cover all HDB flat types this year.

The scheme was previously only available to seniors who own four-room or smaller flat types.

Voluntary Early Redevelopment Scheme (VERS) 

Mr Wong said that the Ministry of Development was working on the implementation details of the Voluntary Early Redevelopment Scheme (VERS) to redevelop older HDB towns.

Under the scheme, it was announced by Prime Minister Lee Hsien Loong in his National Day Rally speech that the Government will buy back older flats before their 99-year leases run out and compensate residents whose flats are taken back early.

Residents can then use the proceeds to buy a new flat.

With all that’s stated here, we can look forward to more exciting things in future HDBs in the near future.

Boys out there, if you’re reading this because your girlfriend sent it to you, it might be time to ask the question.

“Eh you want to BTO with me?”