The new HDB programme will see a change in the categorisation of HDB flats into Standard, Plus and Prime lots instead of Mature or Non-Mature HDB districts.

The new framework will bring about changes in the way HDB flats are sold by HDB, but existing HDB flats and pre-purchased HDB flats will not be affected.

Why is the new division being introduced?

According to Prime Minister Lee Hsien Loong, the existing framework of 'mature' and 'non-mature' zones is no longer relevant and Singapore needs a new framework to achieve three important objectives - to Ensure that HDB flats are affordable for all income groups, that every town and district has a good social mix, and that the system is fair to all.

In time, HDB will move to categorise new pre-purchase HDB projects in terms of standard, preferred and prime lots.

- HDB flats in good condition in ordinary lots throughout the island.

- Standard rate of Home Purchase Allowance (HPA).

- Minimum residency of 5 years.

- HDB flats in a better location in a neighbourhood with easy access to public transport.

- More Home Purchase Allowance is available.

- Minimum 10 years of residence.

- For resale of HDB flats, a percentage of the resale price must be returned to the Government.

- Buyers of resale HDB flats are required to fulfil some of the pre-qualification criteria for HDB flats.

- HDB flats with the best location and closest to the city centre.

- Maximum Home Purchase Allowance (HPA).

- Minimum residency period of 10 years.

- Rental of the entire HDB flat is not permitted.

What is a Preferred Lot HDB Flat?

Preferred Location HDB flats are newer HDB flats that are available in prime locations in various districts, such as near MRT stations and city centres. Bayshore in Bedok township is one of them as it will have two new MRT stations, facilities such as Seri Kena Civic Club, East Coast Park and a new shopping mall is planned to be built nearby.

How much allowance is available?

HDB flats in Preferred Lots are better located and have a higher market price compared to Standard Lots. For those who apply for a HDB flat in a preferred location, they will be entitled to more allowances. In addition, first-time resellers of HDB flats in prime locations will receive a subsidy recovery, but the recovery rate will be lower than that of HDB flats in prime locations.

What are the restrictions on resale of HDB flats?

The government will stipulate that after purchasing a HDB flat in a prime location, the owner must have lived in the flat for 10 years before it can be sold publicly or invested in a private home. In addition, homeowners will not be allowed to rent out the entire flat at any time.

What are the conditions for buying a HDB flat in a prime location in the resale market?

In order to ensure that HDB flats in preferred locations remain affordable once they enter the resale market, the authorities have decided to impose a number of resale conditions.

Singaporeans can buy HDB flats in prime locations through the resale market.

Owners of private homes will have to wait for 30 months after the sale of their homes before they can buy such HDB flats, and resale buyers will also face income ceiling requirements.

Families must earn no more than S$14,000 a month; singles must earn no more than S$7,000 a month.

Can singles apply for HDB Flats Preferred?

Currently, singles aged 35 and above who wish to purchase a new HDB flat can only choose to purchase a 2-room flexible flat in a non-mature neighbourhood, and cannot purchase a HDB flat in a prime location. For divorced or widowed parents with children aged 18 or below, they can apply for a new three-room HDB flat in a non-mature neighbourhood.

When the new categorisation is implemented or after the second half of next year, first-time single buyers will have more options. For pre-purchased HDB flats, they can choose to apply for a 2-room flexible flat in any of the Standard, Preferred and Prime developments. They also have the right to resell in the HDB market to buy HDB flats in Standard or Preferred locations (except for 3-generation flats), or 2-room HDB flats in prime locations.