Analysts expect strong demand for the 17,000 BTO flats to be launched in 2021, in both mature and non-mature estates

• Flats will be launched in both mature and non-mature estates
• The Government will monitor the housing market closely and calibrate supply if required, National Development Minister Desmond Lee said
• The new estates will incorporate sustainability features such as smart lighting and waste systems

SINGAPORE — The Housing and Development Board (HDB) plans to offer about 17,000 Build-to-Order (BTO) flat units in 2021, just slightly more than the number launched this year. 

Property analysts TODAY spoke to said they expect demand for the new flats to be quite strong, especially given the recession, as homebuyers tend to flock towards public housing amid economic uncertainty.

“Application rates will surely be more than encouraging and fairly overwhelming for BTO flats that are conscientiously conceptualised with vibrant precinct themes,” said property analyst Ong Kah Seng.

In 2020, HDB launched 16,752 new BTO units.

In a Facebook post on Monday (Dec 21), Minister for National Development Desmond Lee wrote that the Government will monitor the housing market closely and calibrate supply if required, given the economic uncertainty due to Covid-19.

He added that there will be a good mix of flats available in non-mature estates such as Bukit Batok, Tengah and Woodlands, as well as in mature estates such as Geylang, Kallang Whampoa, Bidadari Estates in Toa Payoh and Ulu Pandan Estate in Queenstown.

The upcoming public housing developments will also incorporate some features under the new Designing for Life Roadmap launched by HDB this year, Mr Lee wrote.

This means that homeowners can look forward to features aimed at making their towns and estates more liveable, efficient, sustainable and safe, including smart lighting, smart pneumatic waste conveyance systems and electric-vehicle ready car parks.

Within the homes, the use of technology and apps will help residents optimise the use of their home appliances and equipment, enabling them to save money, save electricity, reduce waste and hopefully nudge them to lead a more sustainable lifestyle. 

“While we provide residents with convenient access to amenities, we will also weave greenery into these upcoming HDB developments. In coming up with the housing plans, HDB has engaged and taken in the feedback of various partners, including nature groups, to try and strike a balance between conservation and developmental needs,” wrote Mr Lee.

WHAT PROPERTY ANALYSTS SAY

Mr Lee Sze Teck, director of research at property agency Huttons Asia, said that 2021's BTO supply of 17,000 units is “well-balanced”, considering the constraints in the construction industry and ensuring sufficient demand in the resale market.

“Demand for BTO will vary across HDB towns with the mature estates generally seeing more applications. That being said, some younger towns with bold transformation plans also attract many buyers,” said Mr Lee.

Property analyst Chris Koh, director at real estate consultancy Chris International, said that he expects the demand for HDB flats to remain strong.

“When there are economic uncertainties, citizens feel safer buying HDB flats. Historical data has shown that HDB flats sell best during economic downturns. People get more prudent buying HDB flats within their means when uncertainties like job security is a major concern. 

Mr Nicholas Mak, head of the research and consultancy department at real estate firm ERA Realty, said that the planned supply of 17,000 BTO flat units indicates that the HDB market is quite stable.

“Although the Singapore economy is in a recession now, the Government expects the economy to expand by 4 to 6 per cent in 2021. Therefore, the Government may adjust the planned supply of BTO flats in 2021 as required, based on the market dynamics at that time,” he added.

Analysts said the sustainability features in the new estates are also necessary.

“Singapore must do our part to be environmentally responsible and sustainable. Hence, it is important to gradually replace existing fossil-fuel-powered vehicles with electric ones. There must be more electric-vehicle charging points in the car parks of our housing estates,” said Mr Mak. 

“It is easier to build such car parks in new non-mature estates. But more electric-vehicle charging points must also be gradually installed in mature estates. Electric vehicles will be one of the main modes of land transportation in the future.”

Mr Lee also said that more open spaces and perhaps even balconies will be useful as people seek a private space to do their work, given work-from-home arrangements.

“Special project designs have emerged due to the pandemic because of work-from-home culture, which prompted requirements for larger properties or more co-working spaces and spare contingency amenities in each housing project,” said Mr Ong. 

“The more a property or new housing project is designed to be ‘pandemic-ready’, with spare or back-up spaces, the more it would be able to win over property buyers.”