SINGAPORE: Expectations around Singapore’s housing market are shifting as National Development Minister Chee Hong Tat announced that resale flat prices may moderate beginning in 2026. Speaking during his first site visit to Toa Payoh Ridge on 28 May 2024, Chee addressed the growing concerns regarding rising flat prices in the country.
Key Factors Influencing Price Moderation
Chee pointed to a significant increase in demand for resale flats, primarily due to delays in Build-To-Order (BTO) flats caused by the COVID-19 pandemic. He stated, “At the heart of it, it’s actually a supply and demand issue,” and expressed hope that as new flats reach their five-year minimum occupation period, the market will see relief.
- Approximately 19,600 BTO flats will be launched in 2025.
- Over 102,300 BTO flats will be launched from 2021 to 2025, surpassing initial projections.
Temporary Measures and Future Plans
To address the surge in resale prices, the government implemented a 15-month waiting period for private property owners looking to buy HDB resale flats. This restriction is temporary, and Chee noted, “When the situation improves, we are able to consider reviewing or even removing this restriction.”
Rejuvenating Older Estates
Beyond new BTO projects, Chee is also focused on the rejuvenation of older HDB estates. Many residents who once purchased their flats as young couples are now seniors, and he acknowledged the need for housing options that can cater to all age groups. “It’s important for us to look at how we can continue to rejuvenate our towns,” he said.
Collaborative Efforts
Chee emphasised the necessity of working closely with various agencies to ensure a smooth transition for residents moving into new estates. He expressed excitement about engaging with industry partners to better understand their perspectives and gather innovative ideas.
The Minister, who was sworn in on 23 May 2024, comes from a background in transport and believes that long-term planning and collaboration are essential in both ministries. “This requires a team effort,” Chee concluded, urging all stakeholders, including Singaporeans, to participate actively in shaping a more robust living environment.