Why it makes sense to include 5-room HDB flats in Berlayar BTOs – even if price tag may be higher

PEOPLE eager to live in the Greater Southern Waterfront had a generous offering of new Housing & Development Board (HDB) flats at Berlayar Rise to get their hands on in the latest Build-To-Order (BTO) exercise. 

The Berlayar Rise project has 1,976 units comprising 816 two-room flexi, 172 three-room and 988 four-room flats.

Indicative prices excluding grants were between S$247,000 and S$406,000 for two-room flexi units, from S$435,000 to S$591,000 for three-room units and S$592,000 to S$810,000 for four-room units.

As at Jun 24, the application rate among first-timer families for the four-room BTO flats at Berlayar Rise was 3.3 times.

The Berlayar Rise BTO project is the second BTO project in the new Berlayar estate. This estate is located on the site of the former Keppel Club and is served by Labrador Park and Telok Blangah MRT stations. 

The estate’s first BTO project, Berlayar Residences, has 880 flats, comprising two-room flexi, three-room and four-room units.

However, the offerings of new HDB flats at Berlayar estate thus far do not include any five-room units. 

Indeed, five-room flats have not featured in Plus and Prime BTO projects in 2025 and thus far in 2026. Plus flats are in choicer locations and Prime flats are in the choicest locations. Berlayar Residences and Berlayar Rise are Prime projects.

In the latest BTO exercise, there are no five-room flats in the four Plus and Prime projects: Kebun Bahru Ridge, Kebun Bahru Breeze, Lakeview Cascadia and Berlayar Rise.  

Three Standard projects – Sembawang Portico, Sembawang Brook and Woodgrove Acres – have five-room flats.

A four-room flat is sized at around 90 square metres (sq m) while a five-room unit is around one-fifth larger at about 110 sq m. Both configurations have three bedrooms.

While four-room units should adequately meet the needs of many eligible first-timer households, a five-room flat’s additional space might be much needed by some households.  

Think of nuclear families comprising a couple with three or more kids, or couples planning to have three or more kids, or households comprising a couple, two kids and one or more other family members.

I think sound reasons exist to include five-room units in BTO projects in sought-after locations including Berlayar estate, even if five-room BTO flats in this estate are priced at close to or at S$1 million each.

Affordability

One, some eligible applicants may want to buy a five-room BTO flat that is located in a prime area such as Berlayar estate and are fine with paying S$1 million for such a home.

Today, eligible couples have to meet a monthly household income ceiling of S$14,000 to buy a new HDB flat and S$16,000 to purchase an executive condominium (EC) unit from a developer.

Monthly incomes of S$14,000 and S$16,000 translate to annual incomes of S$168,000 and S$192,000 respectively.  

At new EC projects, it’s not uncommon for units to fetch over S$1.6 million each. An EC home costing S$1.6 million works out to over 8.3 times annual income of S$192,000.

Indeed, a new EC unit with comparable size to a HDB five-room flat will likely cost over S$2 million.

In comparison, a hypothetical HDB BTO five-room flat costing S$1 million works out to a more affordable multiple of under six times of annual income of S$168,000. 

Perhaps, some eligible households with monthly income substantially below S$16,000 may, with the possible help of additional grants, also be able to afford a HDB BTO home priced at close to S$1 million.

Moreover, if the income ceiling to purchase new HDB homes is raised soon, there will be more eligible households who can afford pricey HDB BTO flats.  

Large families

Two, having ample supply of five-room flats in new HDB projects in sought-after locations will better support the needs of large households and couples aspiring to have large families.

Sure, the challenge of finding a spacious abode should not be an obstacle to a couple who desires to have a large family. Still, having a generously sized home better supports the needs of larger families.

Moreover, a couple with three or more children might desire to live in a central location as this allows for easier commutes to work or school by the various household members.

If five-room BTO flats are unavailable in a particular location, a household who is eligible to apply for a BTO unit and badly desires to own a five-room flat in the said location might have to resort to coughing up much more to buy a five-room resale flat nearby with shorter remaining land lease.

Market acceptance

Three, Singaporeans are generally pragmatic and should be able to accept a select few HDB BTO flats being priced at around S$1 million each. After all, a S$1 million BTO flat could just be a psychological barrier.

In the HDB resale market, a small number of flats transact at juicy prices – some at over S$1.5 million each. Yet, ample choice of resale units at different price points exists.

Even if some five-room BTO flats at top locations sell for S$900,000 or more each, there will be much more affordably priced five-room BTO flats available too.  

For example, in the June BTO exercise, the 275 five-room flats at Sembawang Portico had indicative prices excluding grants of S$465,000 to S$579,000.     

Some will gripe about how paying S$900,000 or S$1 million is excessive for any HDB five-room BTO flat. 

However, many people may appreciate that paying S$1 million for a five-room BTO unit in a top location offers great value.

This is especially as new HDB homes are well-designed and far cheaper than new EC or condo units.

Also, a comparable resale HDB unit nearby might cost far more than a large new Prime BTO unit.

Given the realities of inflation be it in land value or construction costs, higher housing prices over the long run are likely inevitable. 

Still, should the economy grow and households enjoy higher income, higher home prices can be acceptable, including million-dollar HDB BTO flats.