What are Prime Location Public Housing (PLH), Plus and Standard Model and Its Effect
We saw a record number of HDB flats changed hands in the resale market for at least $1 million in 2021. Many of these lottery effects and excessive windfall gain transactions were mainly located in the prime location when the HDB flats sold on the open market.
On 27th Oct 2021, the Ministry of National Development (MND) and the Housing & Development Board (HDB) have announced the details of the Prime Location Public Housing model, in short, the PLH model. The idea behind this model is to ensure the future new public housing located in the prime, central locations like Greater Southern Waterfront or city centre will remain affordable, accessible, and inclusive for Singaporeans. The HDB will launch the first PLH model project in Nov 2021, in the BTO sales exercise for Rochor’s new flat.
Two years after the PLH model announcement, former prime minister Mr Lee announced in his National Day Rally speech in 2023 the introduction of the new BTO framework, where new BTO from October 2024 will be classified as Prime, Plus, and Standard HDB flat models. So, what are the differences? Let’s explore further here.
From October 2024 onwards, the HDB’s new location-based classification for Build-To-Order (BTO) flats is a step towards a more sustainable future. This system aims to continue fulfilling Singaporeans’ housing needs and aspirations, ensuring homeownership, inclusive communities, and fairness. It’s a policy that you can rely on for a secure and sustainable housing future.
The upcoming BTO projects will be categorized into Standard, Plus, or Prime flats, reflecting the desirability of their locations:
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- Standard flats will remain the most common type of BTO flat. They are offered with substantial market discounts, making them affordable in various locations.
- Plus flats will be situated in more desirable areas, offering good connectivity, proximity to essential amenities, and unique features like waterfront living.
- Prime flats will be in the most sought-after areas, offering prime access to city centers, excellent transport links, and extensive nearby amenities.
Due to the high demand and premium locations of Plus and Prime flats, these units will have higher market values. Still, they will be priced with additional subsidies to maintain affordability for a broader range of Singaporean households. However, they will also come with stricter resale and rental conditions to ensure buyers are purchasing these homes for long-term residence.
It’s important to note that this classification system will only apply to new flats launched from October 2024 onwards and will not impact existing HDB flats or BTO units launched before this date.
What exactly are the key measures under the New Prime Location Public Housing (PLH), Plus and Standard Model? Let’s take a look here
The MND and HDB took into consideration different points of entry or exit. For example, purchasing the Prime, Plus or Standard model during the BTO launch, buying the different flat model flat on the resale market, and selling it.
Purchasing a New Prime (PLH) or Plus Model HDB Flat
On top of the substantial subsidies provided for BTO flat, there will be additional subsidies when purchasing Prime and Plus flat as these locations generally command higher market values. As such, flat prices remain affordable for a broader range of Singaporeans.
As mentioned, it is additional subsidies that Standard Model BTO owner is not entitled to; thus, the Prime and Plus model flat owners will have to pay a percentage of the resale price of the flat to HDB as a means to recover the additional subsidies. The subsidy recovery or clawback percentage is between 6% and 9% of the resale or valuation price, whichever higher.
The priority quotas for flat allocation under the Married Child Priority Scheme (MCPS) will also be reviewed and adjusted depending on the location for flats under the Prime and Plus model. This allows public housing in prime central areas to be more inclusive, providing more opportunities to Singaporeans whose families do not live near to also live in these neighborhoods.
Let’s take a closer look at the key eligibility and condition when purchase a new Prime (PLH), Plus and Standard Model HDB Flat.
| Standard | Plus | Prime | |
|---|---|---|---|
| Flat type | Families: All flat types where applicable Singles: two-room flexi flats | ||
| Income ceiling | Families: S$14,000 (for extended families buying three-room* or larger flats: S$21,000) Singles: S$7,000 (short-lease two-room flexi flats: S$14,000) | ||
| Investment in private residential property | Allowed after MOP | ||
| Location | Largest category of BTO supply, may come with one or two good locational attributes such as being near to MRT stations or good amenities | Choicer locations, e.g. nearer to city centre, good connectivity, good amenities, and/or with unique features such as waterfront living | Choicest locations, e.g. centrally located, excellent connectivity, and comprehensive amenities and/or with unique features such as waterfront living |
| MOP | 5 years | 10 years | 10 years |
| Renting out spare rooms | Allowed for three-room or larger flats | ||
| Renting out whole flat | Allowed after MOP** | Not allowed | Not allowed |
| Resale of flat | Allowed after MOP, with tighter resale conditions for Plus and Prime flats | ||
| Subsidies | Significant market discounts | More subsidies in addition to significant market discounts | Most subsidies in addition to significant market discounts |
| Subsidy recovery | No | Yes (less than Prime) | Yes |
*Applicable only to projects with an income ceiling of S$14,000.
**Not allowed for two-room flexi flats sold on short leases and Community Care Apartments.
Purchasing a Resale Prime (PLH), Plus or Standard Model Flat
The MND and the HDB also look beyond the initial BTO purchase to ensure it remains inclusive, accessible for Singaporeans in the Resale market. Thus the resale Prime and Plus model flat also follows the exact requirement as of the BTO sale launch exercise.
Let’s take a closer look at the key eligibility and condition when purchase a Resale Prime (PLH), Plus and Standard Model HDB Flat.
| Standard | Plus | Prime | |
|---|---|---|---|
| Citizenship | Singapore citizen/ permanent resident | At least one Singapore citizen | |
| Flat type | Families: All flat types where applicable Singles: two-room Prime, any Standard or Plus flat (except 3Gen flats) | ||
| Income ceiling | None | Families and Singles: S$14,000 | Families: S$14,000 Singles: S$7,000 |
| Private property owners | Wait out 15 months from the disposal of their private residential property* | ■ Wait out 30 months from the disposal of their private residential property ■ Wait out 30 months from the disposal of their second and subsequent non-residential property. Those who own only one non-residential property do not need to dispose the property nor wait out 30 months. | |
After Purchasing of a Prime (PLH) or Plus Model Flat
The HDB Prime (PLH) or Plus model flat owner will have to fulfill 10 years Minimum Occupation Period (MOP), which is 5 years longer than any other BTO launch.
The rental conditions were also tightened where homeowners cannot rent out the whole units even after MOP; instead, only room rental is permitted. The tightening rental conditions apply to both the Prime/Plus BTO flat and the Prime/Plus resale flat.
The Prime and Plus flat is only applicable to future projects in the prime, central location such as the city centre and greater southern waterfront area or in desirable areas, offering good connectivity, proximity to essential amenities. It does not affect existing public housing.
What could be the potential long-term side effects of the Prime (PLH) and Plus HDB flat model?
Making money from such prime location homes could get more challenging due to the extended MOP period of 10 years in the Prime and Plus model flat; this could help temper the demand and dampen the resale price in the future.
On the other hand, the resale flats, new or resale private homes nearby Prime (PLH) or Plus model flats could see a slight boost in demand as younger buyers with aspirations of upgrading to private homes could deter and turn to these alternatives due to the extended MOP period, the subsidy recovery, and the restricting to rent out the whole unit after MOP.
With the whole unit rental restriction for Prime (PLH) or Plus model flats, the rental yields of the nearby properties may strengthen as there isn’t an increase in the number of the entire apartment for rent.
The pros and cons of Prime (PLH) / Plus versus other housing choices
With the introduction of the Prime Location Housing (PLH) and Plus model flats, the landscape has evolved further, adding another layer of choice for potential homeowners.
We will explore the minimum occupation period (MOP) required for each property type, eligibility criteria for buyers, and income ceilings for both purchasing from HDB and the resale market. Additionally, we will examine the rental options available in the open market, the impact of private property ownership, and the various government housing grants and subsidies applicable to each property type.
Further, we will discuss the resale levy and any clawback subsidies upon sale, providing a comprehensive view of the financial implications. Lastly, we will outline the estimated waiting period before owners are allowed to invest in private properties, offering insights into long-term planning and investment potential.
With this guide, the prospective home buyer can weigh the pros and cons of each property type through these comparative points.
Minimum Occupation Period
| Property Type | Minimum Occupation Period (MOP) |
|---|---|
| Prime Location Housing (PLH) or Plus Model Flat | 10 years |
| Standard BTO Flat | 5 years |
| Resale Flat (non prime and non plus) | 5 years |
| Executive Condominium (EC) | 5 years |
| Non-landed Private Home | None |
Eligibility to buy
| Property Type | Eligibility to Buy |
|---|---|
| Prime Location Housing (PLH) or Plus model Flat | Family nucleus with at least 1 SC or SC Single |
| Standard BTO Flat | Family nucleus with at least 1 SC or SC Single |
| Resale Flat | Family nucleus with at least 1 SC/1 SPR or SC Single |
| Executive Condominium (EC) | Family nucleus with at least 1 SC or Joint Singles (All SC) |
| Non-landed Private Home | Open to all |
Incoming Ceiling
| Property Type | Buy from HDB | Buy from Resale |
|---|---|---|
| Prime Location Housing (PLH) or Plus Model Flat | $14,000 per month (extended family buying 3 room or larger $21,000 per month. Singles $7,000 (short-lease 2 room flexi flat: $14,000) | $14,000 per month (extended family buying 3 room or larger $21,000 per month. Singles $7,000 (short-lease 2 room flexi flat: $14,000) |
| Standard BTO Flat | $14,000 per month (extended family buying 3 room or larger $21,000 per month. Singles $7,000 (short-lease 2 room flexi flat: $14,000) | None |
| Resale Flat | NA | None |
| Executive Condominium (EC) | $16,000 per month | None |
| Non-landed Private Home | None | None |
Rental Options
| Property Type | Rental Options |
|---|---|
| Prime Location Housing (PLH) or Plus Model Flat | Can only rent out room(s) after MOP |
| Standard BTO Flat | Can rent out whole flat after MOP |
| Resale Standard Flat | Can rent out whole flat after MOP |
| Executive Condominium (EC) | Can rent out whole unit after MOP |
| Non-landed Private Home | No restrictions |
Private Property Ownership
| Property Type | Private Property Ownership |
|---|---|
| Prime Location Housing (PLH) or Plus Model Flat | Must not own or have an interest in a private or overseas property and have not disposed of any in the last 30 months |
| Standard BTO Flat | Must not own or have an interest in a private or overseas property and have not disposed of any in the last 30 months |
| Resale Standard Flat | Allowed, but must dispose of private or oversea property within sixth months of buying the resale flat |
| Executive Condominium (EC) | Must not own or have an interest in a private or overseas property and have not disposed of any in the last 30 months |
| Non-landed Private Home | Allowed |
Government Housing Grants & Additional Subsidy
| Property Type | Housing Grants | Additional Subsidy |
|---|---|---|
| Prime Location Housing (PLH) or Plus Model Flat | Yes (depend on income) | Yes |
| BTO Standard Flat | Yes (depend on income) | No |
| Resale Standard Flat | Yes (depend on income) | No |
| Executive Condominium (EC) | Yes (depend on income) | No |
| Non-landed Private Home | NA | NA |
Resale Levy
| Property Type | Resale Levy |
|---|---|
| Prime Location Housing (PLH) / Plus Model Flat | Payable (depends) |
| BTO Standard Flat | Payable (depends) |
| Resale Flat | NA |
| Executive Condominium (EC) | Payable (depends) |
| Non-landed Private Home | NA |
Clawback Subsidy Recovery Upon Resale
| Property Type | Clawback Subsidy Upon Resale |
|---|---|
| Prime Location Housing (PLH) Model Flat Plus Model Flat | 9% 6% – 8% |
| BTO Standard Flat | No |
| Resale Flat | No |
| Executive Condominium (EC) | No |
| Non-landed Private Home | NA |
Estimated Waiting Period Before Allowed to Invest in Private Properties
| Property Type | Est. Waiting Period Before Allowed to Invest in Private Properties |
|---|---|
| Prime Location Housing (PLH) / Plus model flat Flat | Estimated After 15 years (5 years construction + 10 years MOP) |
| BTO Standard Flat | Estimated After 10 years (5 years construction + 5 years MOP) |
| Resale Flat | After 5 years (MOP) |
| Executive Condominium (EC) | After 5 years (MOP) |
| Non-landed Private Home | Anytime |
Subsidy Recovery Percentages for Plus and Prime Projects in October 2024 BTO Exercise
| Housing Model | Project | Subsidy Recovery Percentage |
| Plus | Central Trio @ AMK | 6% |
| Kembangan Wave | ||
| Bayshore Vista | 7% | |
| Bayshore Palms | ||
| Merpati Alcove | 8% | |
| Kallang View | ||
| Towner Breeze | ||
| Prime | Crawford Heights | 9% |
What you can expect from HDB Prime, Plus and Standard BTO model flats?
Source: The Business Times
In summary
The Prime Location Public Housing (PLH) or Plus model flat is to prevent the “lottery effect” when owners resell their flats on the open market. Prime (PLH) or Plus model flat ensures that new public housing built in prime, central locations like the city centre and the Greater Southern Waterfront or in a more desirable areas, offering good connectivity, proximity to essential amenities will remain affordable, accessible, and inclusive for Singaporeans.
The Prime (PLH) and Plus model flat rules include:
- 10 years Minimum Occupation Period (MOP).
- Clawback additional subsidy recovery upon resale.
- Subject to income ceiling of $14,000 or $21,000 if purchase with extended or multi-generation family. It applies to future resale PLH and Plus model flats as well.
- Fewer flats may be set aside for married child priority scheme.
- No subletting of the whole unit even after MOP. Only room rental is allowed.
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