The decision to raise the subsidy recovery rate aims to ensure that the prices of public housing remain affordable, especially considering the rising resale prices of such properties. The HDB stated that the government would provide additional subsidies for these projects to ensure that prospective buyers can afford homes in these prime locations.

Minister for National Development, Lawrence Wong, urged applicants to consider units in other non-mature estates when contemplating the purchase of projects in Bedok and Bukit Timah to maintain fairness.

He encouraged applicants to consider units in non-mature estates such as Jurong West and Woodlands, where at least 95% of four-room and larger units are reserved for first-time homebuying families.

Experts believe that the move to increase the subsidy recovery rate will help expand demand, allowing more eligible buyers to afford homes in prime locations. They predict that the subsidy recovery rate may further increase in the future, creating a clear distinction between Plus Location and Prime Location public housing.

To meet the growing demand for homes in prime locations, HDB will launch around 4,100 BTO units in February next year, distributed across regions such as Bedok, Queenstown, Tampines, Hougang, Punggol, and Woodlands.

Sun Yanqing, Vice President of Research and Consultancy at OrangeTee & Tie, suggests that the government may introduce more public housing in other prime locations, and the increased subsidy recovery rate will contribute to meeting buyer demands fairly, enabling more families to purchase homes in prime locations.