Singapore government plans to curb demand for HDB flats

The Singapore government is closely monitoring the housing market, particularly the rising prices of Housing Development Board (HDB) flats. Minister for National Development Desmond Lee stated that the government is ready to take action if needed to control demand. Despite million-dollar flats gaining attention, they only made up 3.6 percent of resale transactions in 2024. In an interview, Lee emphasized that most home buyers in 2024 were able to manage their mortgages using their Central Provident Fund (CPF) savings with little to no cash. This suggests that many people can still find affordable options in the HDB market. However, he acknowledged that the high-priced flats have captured public interest. Lee mentioned that the government has implemented cooling measures in the past, like tightening loan limits and changing flat valuations. These actions can be tough for some buyers but help stabilize the market. If the situation worsens, he assured that the government would not hesitate to act again. He also highlighted the importance of increasing the supply of flats. All 92 Build-To-Order (BTO) projects delayed by the pandemic were completed in January 2025. These flats can now enter the resale market, helping with affordability. In the coming years, more flats will become available as they reach the minimum occupation period. The number is expected to grow from 8,000 in 2025 to 19,500 by 2028. Additionally, the HDB plans to release over 50,000 new units between 2025 and 2027. Lee stressed the need for balance in housing measures to ensure prices align with economic growth and incomes.