New BTO Classification: Will My HDB Flat Be More Affordable? - Forum | Talking Point | Full Episode

Build-to-Order (BTO) flats in Singapore will be reclassified as “Standard”, “Plus” and “Prime” flats, from the second half of 2024. This would replace the existing “mature” and “non-mature” labels. What does this mean to you? And how far can it make our flats more affordable? Steven Chia brings your questions on homeownership affordability, BTO wait times, and housing aspirations of Singaporeans to his panel of experts, in a special Talking Point Forum.

00:00 Introduction
02:22 Will this new model push HDB prices up instead of bringing them down?
06:20 Is the wait to get a HDB flat too long?
11:52 Should resale flat sales be regulated by HDB?
17:22 Will HDB flat prices continue to rise?
19:13 Why are HDB flats getting smaller?

About the show:
Talking Point investigates a current issue or event, offering different perspectives to local stories and revealing how it all affects you.
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[garchua]

Thanks to Steve Chia for asking the difficult questions and Nicholas for pointing out the REAL issues, he really knows the ground. As for the authorities who insist that smaller area is acceptable with creative words, i hope you are speaking with your conscience

[Joel-xere]

A topic like this deserves more in-depth discussion. A 20-minute episode only creates more unanswered questions

[LHR]

Well done Nicolas for bringing up a ton of valid points that might have been a blindspot to the authorities. I am quite surprised to hear the Deputy CEO of the architectural firm saying the Living Room space is much more visible now compared to before. When I look at at my Mum's old 4A Model HDB and my own EC Unit, her Living Room is easily the size of my Living Room + 1 Bedroom + 1 Kitchen! They somehow forgotten that these days, the Floor Area are many a times eaten up by the Air Con Ledge, which doesnt come into consideration in the past.

[sephiroth]

Nicholas Mak is totally spot on on the issues that MND or government misses out.

i wish to highlight that new HDB houses usable space is actually SMALLER than stated size due to the bigger toilets, bomb shelters, walkways to rooms & aircon ledges. Other than HDB stopped building new 5 room flats in good locations, the smaller than stated units motivates/ pushes home buyers to purchase a bigger hdb (5 room flat or older hdbs) which cause the resale prices to hyper escalate during covid period where everyone needs a space immediately construction delay worsen it . 

The only probably way to regulate prices in a long run is to build more than enough HDB flats, store it away from market and releasing it on years that has higher demand. It not only stabilise the prices, lower construction cost in a long run, reduce waiting times and allow families to plan earlier for kids hopefully to alleviate the low birth rates. Its the exact same principle on how our government have been doing on the land (being the only land banker in singapore), food security (rice) and important commodities such as oil. 

But at the end of the day it is unlikely to happen as an increasing property price work best for Singapore as a nation so that its population is 1) tied down as part of its total defence and 2) having high continuous productivity due to higher and longer mortgages.

[dvilman]

When govt say "affordable" it means you have to be in debt almost your entire life oncw committed to a property. Back in 80's my father paid off home loan within 12 years on a 3-room HDB at AMK that's less than 40k, working as a telephone operator in a hospital.

[Yongfifi]

I am glad that Nicholas bought up the point that singles are falling through the crack. Being true blue Singaporean, we have always been loyal to our country and contributed equally if not more. Some of us may have sacrifice for our elderly parents as caregivers and was "forced" to remain single by circumstances. However, our need to have our own space and additional space to rent out to fund our retirement is not look into for so many years. There's couples who choose to not have kids but earn a lot from their properties deals. I just hope that the govt can see our needs and grant us the opportunity to buy at least a 3 rm BTO without discrimination.

[static_]

I can't thank CNA enough on these insightful, important, yet not easily available information to the masses.
Great content put out in recent months! Keep it up please!

[winks]

It's great to have Nicholas Mak in the panel, he really pointed out the pertinent issues. Newer HDB flats are getting smaller (with poorer design layout imo) and yet much more expensive. It does not make logical sense at all for those ministers to justify building smaller and smaller HDB flats when they themselves are living in GCBs and not even staying in such small HDB flats.

[Mikeylearnrock]

Does HDB or government recognised that young adults are forming families much later now because of lack of an affordable HDB flat? Late marriages means lower birth rates!

[scorpio]

CNA should do more of such content. More indepth discussions would be great.

[scrumbiepants]

Henry didn't even answer why are the new houses getting smaller 😂

[gweejiahan]

Removing the category won't change what made them mature or not mature in the first place so the higher demand in those areas will not change meaning those units will still command a higher price. the new category just adds another reason to up the price. now nearer to mrt in non mature estates can up price even more.

Henry say, 99 lease to build community. HAHAHA but then:
Joanne say, people who don't have kids or only 1 kid etc don't need 5 room flat at the time and 5 room flat should be reserved for those who need it.
Michael say, they design to be flexible to combine rooms or add rooms to cater to the changing needs of the family.

First: combine or add rooms still don't change the fact that the unit is smaller for the price, what you going to do... eat the next door unit? So what we are seeing is actually shrinkflation!

Joanne and Michael basically have the mindset that "people should buy what they need first and keep moving from location to location as their needs evolve" which is nothing wrong by itself but it goes against the aim of building community that henry and michael has both stated the longer lease is better for. Also its assuming that people don't plan in advance their life and that people can afford to do the constant upgrading in this crazy resale market....

Nicholas is making a good point, Michael make the space per capita argument but which causes which? HDB building smaller units cos family units are getting smaller or is it smaller and more expensive units cause smaller family units?

[nilnil]

Wow, Nicholas is good, I can see uncomfortable reactions from authorities who cannot justify their justification..

[yamikirin]

As someone that tried 5 times and only got a number once (it was 3x the allocated units) before covid and had to go resale, alot of the questions are very relevant. Good job

[antihunter]

It still dont solve the problem, construction takes 3-5 years. MOP takes 10 years. Effective locked-in period 15 years, and anything can happen (family, financially, members passed away) in such as long locked-in.

But this is really a good debate, hearing views from different guest, govt and private, can feel the intensity of the objectives brought across.

[Alexander-etjm]

It's not a secret that many Ma'aysian-converted residents have rented out their entire Singapore HDBs for passive income while happily staying in their JB's nicely renovated condos and landed properties enjoying much lower living expenses.

[Sc-tjbk]

Feel like only a half-way through discussion. This topic is everyone real concern so the episode should be longer, I wish.

[zarine]

Hdb needs to stop charging levy to seniors downsizing to flexi flats. We are releasing bigger flats to families or singles looking for 2 or 3 room flats. Plus seniors who are not wealthy need cash for retirement. Plus often we have spouse or other older family members to support as well. By slapping us wuth levy, govt is not supporting down sizing. Every 10k we save is impt to us for medical, bills, a better old age. Does hdb need the 10 to 30 k in levy from old people who are not wealthy?

[simontan]

The units being smaller also means more units are getting packed into a single estate. That lowers the quality of life overall

[thebestbees]

Nicholas makes a lot of good points! Those bullshit by some deputy CEO about space per capita being consistent. A smaller flat is a smaller flat, why justify with some nonsense ?