Desmond Lee on new public housing classification system

A new classification system for HDB Build-to-Order (BTO) flats seeks to keep home ownership affordable, maintain a good social mix in HDB estates across Singapore and keep the public housing system fair for all. National Development Minister Desmond Lee explained why, in response to MPs’ questions in Parliament on Monday (Sep 18). The new model will classify future flats as Standard, Plus or Prime, doing away with the labels for mature and non-mature estates. Plus flats, which will be in “choicer” locations, will come with more subsidies but also tighter resale conditions including a 10-year Minimum Occupation Period (MOP). Mr Lee explained why setting a hard price cap on Plus and Prime flats, as suggested by some, could be “distortionary”; how the new framework aims to reduce social stratification; and why the 10-year MOP strikes a balance between strengthening the intent for owner occupation and giving home owners the flexibility to move if they have genuine reasons. Mr Lee said his ministry will closely monitor the impact of the new housing framework on the broader resale market and review the measures when necessary. He said the vast majority of new flat supply will continue to be set aside for first-timer families. At the same time, steps are being taken to improve housing access for singles, and suggestions for new housing typologies such as co-living and intergenerational housing are being actively studied.