estimate
The Housing and Development Board (HDB) has announced the launch of over 25,000 new flats in 2025, with the aim to meet the housing demand in the upcoming years. This news was shared by Minister for National Development, Desmond Lee in a joint press release by HDB and the Ministry of National Development (MND) on January 16.
Out of the total, about 19,600 new Build-To-Order (BTO) flats will be offered across three sales exercises, along with over 5,500 Sale of Balance Flats (SBF) in one SBF sale exercise. The units will be a mix of Standard, Plus, and Prime BTO flats under the new classification framework. HDB has also announced the launch of approximately 5,000 flats in Kallang/Whampoa, Queenstown, Woodlands, and Yishun in the February BTO launch.
Moreover, HDB will also conduct its largest-ever Sale of Balance Flats (SBF) exercise next month, offering over 5,500 flats across various estates. About 40% of the flats in the SBF exercise are completed units, while the rest are at different stages of construction and are expected to be completed between 2025 and 2028.
In total, more than 10,000 new flats will be available under the February BTO and SBF exercises. This is a significant increase compared to the last four years, from 2021 to 2024, where HDB launched about 82,700 BTO flats. With a planned pipeline of 19,600 BTO flats in 2025, HDB is on track to launch around 102,300 BTO flats, exceeding its commitment of 100,000 units over five years.
The ramp-up in BTO supply has resulted in a drop in application rates. In 2024, the average application rate among first-time homebuyers for BTO across all flat types was 2.1, compared to the pre-pandemic rate of 3.7 in 2019. The average first-timer application rate last year for three-room and larger flats was 2.2, down from 4.0 in 2019.
HDB will continue to release a steady pipeline of flats to meet housing demand in the next few years, says Minister Lee. Over 50,000 flats will be launched between 2025 and 2027, bringing the total to about 130,000 flats from 2021 to 2027.
Out of the 19,600 new flats in 2025, about 3,800 flats will be Shorter Waiting Time (SWT) flats of less than three years. This is a boost from the 2,876 SWT flats offered in 2024 and more than the committed annual supply of 2,000 to 3,000 SWT flats. This increase in SWT flats will also provide more options for buyers and may attract some demand away from the resale market.
Before making any decisions about investing in a Singapore Condo, it is crucial to carefully consider the property cooling measures implemented by the Singaporean government. These measures play a significant role in regulating the real estate market and discouraging speculative buying. Over the years, the government has introduced various measures such as the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on both foreign buyers and those looking to purchase multiple properties. While these measures may initially affect the short-term potential profitability of condo investments, they ultimately contribute to the long-term stability of the market, creating a more secure investment environment for individuals interested in investing in a Singapore Condo. Therefore, it is crucial to carefully consider these government regulations when making any investment decisions. It is essential to keep in mind that these measures are in place to protect the market and maintain a fair balance for all investors. Hence, taking these government regulations into account is vital when contemplating investing in a Singapore Condo.
Moreover, about 7,000 HDB flats will reach their five-year minimum occupation period (MOP) in 2025, making it the lowest supply of such resale flats since 2015. Minister Lee estimates that with HDB pushing out more BTO and SBF flats to meet the demand, this will offer more choices for buyers and stabilize the resale market. The larger flat supply and SWT flats will also address the shortfall in MOP flats.
Huttons Asia’s senior director of data analytics, Lee Sze Teck, 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.