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The Prime Location Public Housing (PLH) concept was launched today by the Ministry of National Development (MND) and the Housing & Development Board (HDB). This new approach assures that new public housing constructed in prime, central areas such as the city center and the Greater Southern Waterfront remains cheap, accessible, and inclusive to Singaporeans. After extensive consultations with the general public, academics, and industry stakeholders, the PLH model was created. During the BTO sales exercise in November 2021, the first project under the PLH concept will be unveiled in Rochor.
Around 4 out of 5 Singaporeans live in HDB flats, with 90% of them owning their houses. The concepts of affordability, accessibility, and diversity are at the heart of Singapore’s public housing policy. It is critical that public housing in high-demand areas be based on the same ideals. However, if left to market forces alone, only the wealthy would be able to purchase houses in desirable areas, given their appealing locations and features. As a result, a new approach is needed to guarantee that public housing in key central locations continues to represent our society’s variety.
Extensive public engagement was conducted throughout the creation of the new model to obtain input and recommendations from a variety of Singaporeans. Over 7,500 Singaporeans, including first-time homebuyers, established homeowners, industry professionals, and academics, gave their thoughts on the new model over the course of ten months, from November 2020 to September 2021.
These recommendations and ideas have enhanced policy-making and the design of the new model. Singaporeans, representing a diverse range of viewpoints and perspectives, recognized that each measure had advantages and disadvantages, and that a balanced approach would be required. The majority of Singaporeans believe that the government should establish new policy conditions. These conditions could include recovering additional subsidies given at the time of first sale when reselling the flat; prohibiting whole-flat rental; establishing eligibility criteria for subsequent resale flat buyers; selling flats on shorter leases; allowing flats to be sold back to the government only; extending the minimum occupation period (MOP) beyond the current 5 years; and reexamining priority schemes for flat allocation.
MND and HDB have created the new housing model to maintain public housing in key locations cheap, accessible, and inclusive for Singaporeans, both at the time of purchase and at a later time on the free market, taking into account the varied comments received.
New Prime Location Public Housing (PLH) Model
Purchasing New PLH Flat
Additional Subsidies at First Sale to be recovered upon Resale of Unit
New PLH units will be priced with extra subsidies, on top of the significant subsidies currently granted for BTO flats today, since new flats in prominent locations will naturally fetch higher market prices. Flat rates will remain affordable to a broad variety of Singaporeans as a result of this.
Property owners of PLH units will pay a proportion of the resale price of the flat to HDB as a method of recovering the extra subsidies, in order to be on par with other BTO flat owners who do not get these additional subsidies. The percentage of subsidy recovery will be proportional to the size of the original extra subsidy. More information will be released during the BTO sales exercise in November 2021.
Married Child Priority Scheme Allocation Quota to be Reduced
The qualifying requirements for purchasing such units from HDB will be the same as the requirements for purchasing BTO units. However, for locations established under the PLH model, priority quotas for flat allocation under the Married Child Priority Scheme (MCPS) would be evaluated and changed based on location. This permits public housing in great central locations to be more inclusive, giving Singaporeans with family members who do not reside in the region additional possibilities to dwell in these areas.
Purchase of Resale PLH Flat
More Eligibility Conditions for Resale PLH Flat Buyers
After the first purchase, it is necessary to guarantee that PLH apartments remain inclusive and accessible to a diverse range of future flat owners. As a result, the resale of these apartments will be restricted to customers who match the current eligibility requirements for buying flats directly from HDB.
| # | Status | Typical Resale Flats | Flats Bought from HDB and PLH Resale Units |
|---|---|---|---|
| 1 | Income Ceiling | Up to $14,000 | NA |
| 2 | Private Property Ownership | Allowed, but will have to sell their private property within 6 months upon purchasing the resale flat | Must not own private property or disposed any within the last 30 months |
| 3 | Citizenship | - At least one applicant is a SC or SPR. - Household can comprise only SPRs. | - At least one applicant is a Singapore citizen (SC). - Household must have at least one SC and one Singapore permanent resident (SPR). |
| 4 | Family Necleus | - Single above 35 yrs old - Must have eligible family necleus | Must have eligible family necleus |
Without the qualifying requirements, the resale prices of these premium location apartments may increase beyond the grasp of many Singaporeans, and only the wealthy will be able to purchase them in the future. Before contemplating a review, MND and HDB propose to require that PLH be resold solely to purchasers who can fulfill the current eligibility standards for BTO apartments for about half of the 99-year lease. Buyers who do not fulfill the qualifying requirements may still look at the market for resale flats or other private residential properties to suit their housing needs.
After Purchasing a PLH Unit
Improving Owner-Occupation: Lengthening the Minimum Occupation Period and Tightening Rental Conditions
Many Singaporeans feel that public housing should be reserved largely for families in need, and that more should be done to discourage speculative demand. Given their good locations and substantial subsidies, PLH apartments must be protected for Singaporeans with real housing needs, and the owner-occupation purpose must be strengthened. As a result, PLH flat owners will need to live in their flats for at least 10 years (i.e. the MOP) before they may sell or invest in a private residential property on the open market.
Furthermore, although they will be able to rent out their extra bedrooms, they will not be able to rent out the whole property, even after the MOP. All flat owners who acquire PLH apartments via HDB or on the free market will be subject to these requirements.
| # | Status | BTO Model | PLH Model |
|---|---|---|---|
| 1 | Resale | Allowed upon 5 yrs MOP | Allowed upon 10 yrs MOP |
| 2 | Investment in Private Property | Allowed upon MOP | Allowed upon MOP |
| 3 | Renting out spare room | Allowed upon MOP | Not allowed |
| 4 | Renting out whole unit | Allowed upon MOP | Not Allowed |
Areas in Which The Prime Location Public Housing Model Will Be Used
Selected public housing developments in desirable and strategic locations, such as the city center and neighboring districts, including the Greater Southern Waterfront, will use the PLH concept. Existing apartment owners will not be subjected to the PLH model retrospectively.
Where possible, public rental apartments will be developed on these lands for lower-income families. This will guarantee that public housing in Singapore remains inclusive and diversified and that HDB towns continue to attract people from all walks of life.
At Rochor, a Pilot Project is Launched
Rochor, in the Central Area, will be the site of the first project under the PLH paradigm. At the approaching Nov 2021 BTO sales exercise, 960 units of 3-room and 4-room apartments will be offered for sale along Kelantan Road and Weld Road (See Annex for location map). A total of 40 two-room rental apartments will be included in the trial project. More information will be revealed during the November launch.
The PLH model was created by MND and HDB after thorough consideration of public comments and consideration of all options. We will continue to assess the criteria over time, making modifications as needed, to ensure they stay relevant to the requirements of Singaporeans, as we do with every new policy. The public may visit the HDB InfoWEB at www.hdb.gov.sg with any questions.
