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Up to 23,000 Built-To-Order (BTO) flats will be launched per year in 2022 and 2023 across mature and non-mature estates, in order to meet "strong housing demand from Singaporean households", the Housing Development Board (HDB) said on Dec. 16.

This marks a 35 per cent increase from the 17,100 BTO flats that were launched in 2021.

In 2019, 14,600 BTO flats were injected into the supply.

HDB said it is also prepared to launch 100,000 flats in total from 2021 to 2025, if there is demand for it.

Flats to be launched across mature and non-mature estates

In 2022, the new flats will be launched in both mature and non-mature towns, such as Bukit Merah, Jurong West, Kallang Whampoa, Queenstown, Tengah, Toa Payoh and Yishun.

"The increased supply of flats will provide more housing options for young couples planning to start their marriage and parenthood journey, as well as for second-timer families, multi-generation families, the elderly, and singles," said HDB.

HDB also noted that the demand for public housing has increased significantly in recent years.

The overall number of applications received per BTO flat rose from 3.7 times in 2019 to 5.5 times in 2021.

More people opting for smaller households

HDB said the increased demand is due to more marriages among the larger cohorts of those born in the 1980s to 1990s reaching marriageable age.

It added that there is a growing trend of smaller households as more people are opting to have their own flats instead of living together as a larger household in the same flat.

It also cited Covid-19 related factors and the "buoyant resale market" that has led to more demand in the BTO market.

This sudden announcement of more flats comes after the surprise implementation of fresh property cooling measures.

From Dec. 16, the Additional Buyer's Stamp Duty (ABSD) rates for those purchasing additional properties will be raised.

The total debt servicing ratio (TDSR) for borrowers will be tightened.

The Loan-to-Value (LTV) limits for loans from HDB will also be lowered.

First-time homebuyers a priority

HDB said helping Singaporeans secure their first home is a "key priority".

Homebuyers may choose to buy a BTO flat from HDB directly at a subsidised price, or a resale flat from the open market, with a range of housing grants depending on their "individual needs and preferences".

Minister for National Development Desmond Lee said the cooling measures announced on Dec. 15 that took Singaporeans by surprise sought to "prioritise housing purchases for genuine owner-occupation, especially among first-time homebuyers".

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Top photo via Jiachen Lin/Unsplash