What Makes An HDB Flat Prime Or Plus?

Published 13 October 2024, 2:00 PM SGT · 4 min read · 194

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?

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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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Frequently asked questions

What is the difference between Prime and Plus HDB flats?

Prime flats are generally closer to the city centre and may have higher prices, while Plus flats are in the same town but not as centrally located. The distinction is often based on market prices and location factors, but there is no clear boundary.

How does location affect whether an HDB flat is classified as Prime or Plus?

Location factors such as proximity to the city centre, train lines, malls, and offices influence classification. Prime flats are typically nearer to these amenities, but the exact boundary is not clearly defined and depends on market prices.

Will the classification of flats into Prime and Plus impact their resale value?

It is expected that Prime locations may become more sought after and could hold their value better over time, but the exact impact will depend on market trends and resale prices in the future.

Are only 4-room flats affected by the Prime and Plus classifications?

Yes, currently Prime and Plus flats are confined to 4-room flats. The impact on 5-room flats is uncertain, but prices of existing 5-room units near Prime areas may increase over time.

How will the new classification system influence social stratification in Singapore?

The classification could lead to some areas being viewed as pricier or more desirable, potentially creating social stratification, but efforts are suggested to prevent these labels from becoming markers of inequality.

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Ryan J. Ong

Partner at Stacked

A seasoned content strategist with over 17 years in the real estate and financial journalism sectors, Ryan has built a reputation for transforming complex industry jargon into accessible knowledge. With a track record of writing and editing for leading financial platforms and publications, Ryan’s expertise has been recognised across various media outlets. His role as a former content editor for 99.co and a co-host for CNA 938’s Open House programme underscores his commitment to providing valuable insights into the property market.