“All HDBs are good HDBs”, said Prime Minister Lee Hsien Loong in his National Day Rally yesterday when announcing the new “Standard, Plus, Prime” HDB flat scheme.
The scheme classifies new Build-to-Order (BTO) flats according to region, and this classification will affect the prices of the flats, government subsidies received, and Minimum Occupation Priod (MOP).
Already, Singaporeans have expressed concern that the scheme will push up the overall prices of HDB flats in the years to come.
One reason is, due to their longer MOP, the reduction in supply of resale flats might be reduced in areas where Plus flats are built.
This supply crunch could push up the overall prices Plus flats, and even push demand down to Standard resale flats, thereby driving up overall resale flat prices.
Besides that, prices of existing HDB flats on the fringes of upcoming Prime and Plus flats are likely to increase in price.
In addition, PRs and households not eligible for BTO flats are not allowed to buy resale Prime and Plus flats, and can only but Standard flats.
This demand could ramp up prices of Standard flats, resulting in overall prices increases across all categories.
Already, young Singaporeans chasing their first BTO flat are baulking at high prices, long waiting times and inadequate supply.
Many say they are unable to afford resale flats, which have seen surging prices due to the Covid-19 supply crunch.
Concerns abound that the new Standard, Plus, Prime scheme could exacerbate the existing sky-rocketing prices of HDB flats when these new BTO flats are launched, and when these flats hit their MOP.