Keeping public housing affordable: Singapore ramps up BTO supply and estate renewal programmes
The government is reviewing the BTO eligibility age for singles and is also considering adjustments to the income ceilings for HDBs and ECs (Photo: Samuel Isaac Chua/EdgeProp Singapore)
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HDB housing remains a top priority for the government. “HDB flats are home to about 80% of Singaporeans and a key part of our social fabric,” said National Development Minister Chee Hong Tat on Aug 5.
Chee emphasised that ensuring a robust supply is critical to meeting demand and keeping prices in check. Between 2025 and 2027, 55,000 new Build-to-Order (BTO) flats will be launched. “If there are enough BTO flats for first-time buyers, some will likely choose these over resale flats,” he noted.
In the private housing segment, 25,000 units will be made available through the Government Land Sales (GLS) programme. Including the 45,000 private housing units already in the pipeline, a total of 70,000 private homes are expected to be completed by around 2030.
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A rising number of BTO flats will reach their minimum occupation period (MOP) in the coming years, from 8,000 units in 2025 to 13,500 in 2026, 15,000 in 2027 and 19,500 in 2028. This, Chee said, will expand the potential resale supply and help moderate prices. “As more BTO flats reach their MOP, there could be further stabilisation,” said Chee.
Resale price growth has already slowed, with a q-o-q increase of 0.9% in 2Q2025, the third consecutive quarter of moderation and the lowest since 2Q2020.
Chee: If there are enough BTO flats for first-time buyers, some will likely choose these over resale flat (Photo: Bloomberg)
Resale market trends and price points
While the number of million-dollar flat transactions has been rising, they remain a small fraction of total sales, Chee noted.
According to Lee Sze Teck, senior director of data analytics at Huttons Asia, a record 415 such flats changed hands in 2Q2025, up 19.3% from the previous quarter. Over 90% were in mature estates, with Toa Payoh recording the highest number (80), followed by Bukit Merah (56) and Queenstown (49).
“These flats remain attractive because they offer immediate occupancy and allow buyers to choose preferred attributes such as location and size,” said Chee. “It’s reasonable for resale flats in prime locations with desirable attributes to sell at higher prices.”
Many sellers are former BTO owners upgrading to executive condos (ECs) or private property. Chee stressed that resale flats are available at various price points, citing four-room units with at least 70 years left on their leases. Examples include units in Tampines and Punggol priced between $650,000 and $700,000; in Sembawang and Yishun for under $600,000; and in Jurong West and Woodlands for under $500,000.
“For first-time buyers who qualify for grants, prices will be even lower, as they can receive up to $230,000 in housing grants,” he added.
The government is reviewing the BTO eligibility age for singles — currently 35 — and considering adjustments to income ceilings, which now stand at $14,000 for HDB flats and $16,000 for ECs (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Reviewing singles’ age eligibility and income ceilings
The government is reviewing the BTO eligibility age for singles — currently 35 — and considering adjustments to income ceilings, which now stand at $14,000 for HDB flats and $16,000 for ECs.
“Lowering the BTO eligibility age for singles will boost demand by allowing more individuals to apply earlier,” said Eugene Lim, key executive officer of ERA Singapore. “Similarly, raising the income ceiling will expand the pool of eligible buyers.”
The last review of income ceilings was in 2019. Since then, housing prices have risen significantly and average household monthly income has increased 16.6% from $9,763 in 2019 to $11,382 in 2024, noted Lim.
With application rates for first-time families stabilising and a surge of MOP units expected from 2026, demand from families should be manageable, he observed.
However, demand for two-room flats remains highly oversubscribed. Lowering the singles’ age limit, Lim reckons, could appear counterintuitive given the broader policy of encouraging marriage and family formation.
This year, the Silver Upgrading Programme was extended to 12 more precincts across Ang Mo Kio, Bukit Merah and Toa Payoh (pictured above), benefiting 11,000 more households (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Rejuvenating ageing flats and estates
Another major focus for the Ministry of National Development (MND) is upgrading and rejuvenating older flats and estates rather than redeveloping them under the Selective En Bloc Redevelopment Scheme (SERS).
The Neighbourhood Renewal Programme (NRP), launched in 2007, was expanded last year to include more senior-friendly features such as therapeutic gardens, fitness trails and wayfinding aids. The Silver Upgrading Programme (SUP), introduced in 2024, targets older estates with higher concentrations of seniors. This year, SUP was extended to 12 more precincts across Ang Mo Kio, Bukit Merah and Toa Payoh, benefiting 11,000 more households.
Private estates are also receiving upgrades under the Estate Upgrading Programme (EUP). A new “Silver Estate” category, launched in February 2025, supports seniors ageing in place, with $11 million allocated to upgrade seven selected estates. In addition, $124 million has been set aside to upgrade 25 private estates under the regular EUP, which has also been expanded to include senior-friendly enhancements.
Seniors can also benefit from the Enhancement for Active Seniors (EASE) programme, which subsidises home modifications. Originally for HDB flats, EASE will be extended to private estates from April 2026.
The new Home Improvement Programme II (HIP II) will address the needs of flats entering the second half of their leases, using enhanced solutions such as the corrosion-resistant repair (CRR) method for spalling concrete and exploring microwave scanning for early detection of structural issues. More details will be announced at the 2026 Committee of Supply.
VERS is still in the framework development stage and is expected to begin in the first half of the 2030s. Redevelopment will be staged over 20 to 30 years to minimise disruption and allow strategic town replanning (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Managing lease decay: SERS and VERS
Chee reiterated that most HDB and private properties are sold with 99-year leases to ensure fairness for future generations, allowing land to be recycled for new housing and enabling estate rejuvenation over time.
SERS, which began in 1995, involves compulsory acquisition by the government, with owners compensated at market value. The upcoming Voluntary Early Redevelopment Scheme (VERS) will apply to selected precincts about 70 years old, allowing residents to vote on whether to sell their flats back to the government for redevelopment.
VERS is still in the framework development stage and is expected to begin in the first half of the 2030s. Redevelopment will be staged over 20 to 30 years to minimise disruption and allow strategic town replanning.
ERA’s Lim noted that VERS may face challenges if compensation is perceived to be less favourable than SERS, and older owners may be cautious about affordability when buying replacement homes.
Offering priority selection of new flats in the same location could help improve participation rates.
“Ageing infrastructure, from water pipes to structural elements, is a concern in older flats,” Lim said. “These flats were built with methods that have since evolved, and residents hope redevelopment can address these issues.”
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