What Makes An HDB Flat Prime Or Plus?
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Ryan J
- October 13, 2024
- 3 min read
3 min read
What makes a flat Plus, and what makes it Prime?
I’m convinced this is the next (mostly) unresolvable argument we’ll see in the coming decades; on par with the age-old “freehold versus leasehold” argument. As I’m writing this, we’re about a week away from a historically significant BTO launch: the October 2024 launch which will do away with the old “mature versus non-mature” categorisation, replacing it with three classes of flats: Standard, Plus, and Prime.
Prime housing isn’t completely new, as we’ve seen some of these projects launched already. Plus housing is just being introduced now, however; and what’s interesting is that Plus and Prime housing can be in the same HDB town. For example, Kallang/Whampoa has two Plus sites (Kallang View and Towner Breeze) and one Prime site (Crawford Heights).
The distinction between the two is that Crawford Heights is closer to the city centre. But anyone who visits the sites – or is familiar with the area – will question the price premium that comes from this. Take a look at the sites here, and you’ll notice they’re about a train stop or a few short bus rides from each other.
This is bound to make buyers question if a few minutes difference is going to make up for higher prices and a bigger Subsidy Recovery (SR), upon resale.
Give it a decade or two for these flats to have a resale presence, and we’ll also see eager comparisons between the two: if you have a Plus and Prime flat in the same HDB town, which would hold its value better?
It’s difficult – perhaps even illogical – to have a clear matrix for what distinguishes Plus from Prime. Does the proximity of one specific train line count for more than another? How about access to malls, or nearby offices? As for the distance to the city centre, how much of that is really a contributing factor? Does being five minutes closer to the CBD outweigh being further from schools and the market & food centre?
It might come down to just market prices in the end
It’s too difficult to just draw a clear boundary line, and declare where Plus becomes Prime. More than likely, the decision will be down to the prices of surrounding resale flats. In Singapore, we have quite a lot of trust in free markets to determine value. As more projects are built over time, the Prime locations may become beacons of HDB’s pricier areas; and it could lead to some social stratification as well.
With the new classification system, we’ll have to tread lightly but assertively, to prevent them from becoming markers of poor versus rich parts of town.
As an aside, it also makes me wonder about the impact of 5-room flat prices
The Plus and Prime flats are so far confined to 4-room flats as their largest units. But if HDB is building just 4-room flats in these key areas, and not building any more 5-room flats, that seems likely to drive up prices of existing 5-room units.
We don’t have a study of that yet, and the effect may not be observable until a decade or so down the road. But if I owned a 5-room within the vicinity of a Prime project, I’d be much more reluctant to part with it now.
Meanwhile, in other property news…
- Check out Norwood Grand, Woodland’s first new launch condo in over a decade.
- Can HDB flats get to 1,700 sq. ft. in size? Yes, they can. Here are some flats big enough to host your old SAF section this New Year.
- Alternatively, get a double-storey maisonette condo unit. Now you can play games at full volume without annoying the rest of the family.
- Take a look at what I assume to be the safest condos in Singapore. And by that, I mean they’re so jam-packed full of residents, that you can’t even litter without someone seeing.
Weekly Sales Roundup (30 September – 06 October)
Top 5 Most Expensive New Sales (By Project)
| PROJECT NAME | PRICE S$ | AREA (SQFT) | $PSF | TENURE |
| MEYER BLUE | $10,280,000 | 2992 | $3,435 | FH |
| CANNINGHILL PIERS | $5,647,000 | 1959 | $2,883 | 99 yrs (2021) |
| WATTEN HOUSE | $5,165,000 | 1539 | $3,356 | FH |
| KLIMT CAIRNHILL | $4,990,000 | 1496 | $3,335 | FH |
| THE RESERVE RESIDENCES | $4,133,640 | 1561 | $2,648 | 99 yrs (2021) |
Top 5 Cheapest New Sales (By Project)
| PROJECT NAME | PRICE S$ | AREA (SQFT) | $PSF | TENURE |
| PINETREE HILL | $1,398,000 | 538 | $2,598 | 99 yrs (2022) |
| KASSIA | $1,413,000 | 753 | $1,875 | FH |
| 8@BT | $1,437,000 | 517 | $2,781 | 99 yrs |
| THE CONTINUUM | $1,486,000 | 560 | $2,655 | FH |
| HILLHAVEN | $1,516,604 | 700 | $2,168 | 99 yrs (2023) |
Top 5 Most Expensive Resale
| PROJECT NAME | PRICE S$ | AREA (SQFT) | $PSF | TENURE |
| ARDMORE PARK | $12,700,000 | 2885 | $4,402 | FH |
| D’LEEDON | $4,547,500 | 2239 | $2,031 | 99 yrs (2010) |
| THE CORNWALL | $4,480,000 | 2551 | $1,756 | FH |
| CYAN | $4,450,000 | 1658 | $2,685 | FH |
| MARTIN MODERN | $3,660,000 | 1421 | $2,576 | 99 yrs (2016) |
Top 5 Cheapest Resale
| PROJECT NAME | PRICE S$ | AREA (SQFT) | $PSF | TENURE |
| PAVILION SQUARE | $650,000 | 398 | $1,632 | FH |
| HEDGES PARK CONDOMINIUM | $660,000 | 484 | $1,363 | 99 yrs (2010) |
| LE SOMME | $758,000 | 495 | $1,531 | FH |
| D’NEST | $780,000 | 484 | $1,610 | 99 yrs (2010) |
| THE TAPESTRY | $810,000 | 474 | $1,710 | 99 yrs (2017) |
Top 5 Biggest Winners
| PROJECT NAME | PRICE S$ | AREA (SQFT) | $PSF | RETURNS | HOLDING PERIOD |
| ARDMORE PARK | $12,700,000 | 2885 | $4,402 | $3,000,000 | 14 Years |
| THE CORNWALL | $4,480,000 | 2551 | $1,756 | $2,420,000 | 22 Years |
| TERESA VILLE | $3,256,000 | 1959 | $1,662 | $2,006,000 | 17 Years |
| THE CALROSE | $3,218,000 | 2185 | $1,473 | $1,908,000 | 15 Years |
| PAYA LEBAR RESIDENCES | $2,310,000 | 1281 | $1,803 | $1,409,400 | 25 Years |
Top 5 Biggest Losers
| PROJECT NAME | PRICE S$ | AREA (SQFT) | $PSF | RETURNS | HOLDING PERIOD |
| LOFT@HOLLAND | $1,388,000 | 980 | $1,417 | -$212,000 | 6 Years |
| SEAHILL | $1,180,000 | 710 | $1,661 | -$87,400 | 12 Years |
| ESPADA | $1,250,000 | 560 | $2,233 | -$45,493 | 15 Years |
| VIDA | $1,110,000 | 527 | $2,105 | -$29,953 | 15 Years |
| KINGSFORD WATERBAY | $1,050,000 | 689 | $1,524 | $44,005 | 7 Years |
Transaction Breakdown
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