HDB changes may divert demand to existing resale flats, shrink upgrader pool for private housing: analysts

THE Housing and Development Board’s (HDB) new framework for Build-to-Order (BTO) flats has been a long time coming, but could drive demand to existing flats and eat into the private housing market’s pool of upgraders, analysts said. 

Announced by Prime Minister Lee Hsien Loong during his National Day Rally on Sunday (Aug 20), the framework differentiates BTO projects by locational attributes rather than age of estate. It aims to provide more affordable new flats in attractive locations, and reduce the windfall gains that come with the high resale prices of flats in mature estates.

The introduction of Plus flats, a new classification for desirable locations near transport nodes or town centres, will come with more subsidies but with tight curbs on resale.