The classification of residential areas in Singapore into mature and non-mature districts is based on national housing policy and urban planning considerations. This division mainly affects the sale and allocation of public housing (HDB). Below is an explanation of the two types of zoning:
Mature Zones: Mature zones are areas that are already well-built and have more complete infrastructure and social services. These areas have well-established commercial centres, educational institutions, medical facilities, etc. Public housing (HDB flats) purchased in mature districts tend to be more expensive, but they also offer greater convenience and quality of life.
Non-mature: Non-mature areas are relatively new, with infrastructure and social services still under construction. These areas may not yet be developed into full commercial centres, but are relatively less expensive. Public housing (HDB) purchased in non-mature areas tends to be more affordable, but may lack some of the amenities of mature areas.
Policies and conditions for purchasing public housing (HDB) in mature and non-mature districts may differ. For example, there may be differences in age of purchase, eligibility for purchase, and type of flat. The government usually demarcates different zones based on market demand, urban development plans, and other factors.
Why introduce a new zoning model?
Singapore currently divides HDB flats into 'mature' and 'non-mature' zones. However, there is less and less undeveloped land available for the development of new townships or HDB areas, so new HDB flats have to be built close to or in existing HDB areas, which are generally more centrally located, have more amenities and are more popular among the nationals, and naturally, they are more expensive.
In fact, the so-called non-mature HDB districts are actually quite developed at the moment. Therefore, the concept of mature and non-mature HDB districts will not be applicable and a whole new framework is needed.
The Singapore Forward Together movement, in dialogue with the people of Singapore, believes that there are three important objectives that public housing must achieve, and these are: to ensure that HDB flats are affordable to the people of all salary brackets, to ensure that there is a good social mix in every town and district, so that different sections of the country can live in HDB flats, and to ensure that the system is fair to all.
According to the Ministry of National Development and HDB, the Preferred Lot HDB flats will be located in different parts of the island, and are better-located HDB flats, which may be closer to MRT stations or towns.
For example, HDB flats that will be put up for public sale in the Bayshore area are likely to be classified as Preferred Lot HDB flats, where there is an MRT station and a civic club nearby, as well as being close to the East Coast Park.
The other two categories of HDB flats are Standard and Prime. Standard HDB flats will be those that are situated in ordinary locations while Prime HDB flats will include those that are close to the city centre.
Singapore will also be launching new projects in Ang Mo Kio, Bishan, Clementi, Toa Payoh, Bedok, Queenstown, Redhill, Kallang-Whampoa areas which will also include Prime HDB flats.
How much allowance can I get for buying a Preferred Lot HDB Flat?
HDB flats in the Preferred Lots are more attractive in terms of location and market value than standard HDB flats, so the allowances for Preferred Lot buyers will be higher than the allowances for standard HDB flats buyers. The allowance for standard lot HDB flat buyers will be the same as that already provided by the Government.
However, to ensure fairness to the buyers, there will be a sub-sidy recovery for first-time resale of HDB flats in preferred lots, but the recovery rate will be lower than that of HDB flats in prime lots.
What are the restrictions on resale of HDB flats in prime locations?
In order to ensure that more people are buying their own homes, the government has imposed a minimum residency requirement of 10 years for owners of HDB flats in prime locations before they can sell their homes to the public or invest in private homes.
Moreover, the owner cannot rent out the entire flat at any time.
What are the conditions for buying a Preferred Lot HDB flat from the resale market?
Singapore has carefully considered how to ensure that Preferred Lot HDB flats remain affordable once they enter the resale market and has decided to impose several resale conditions.
Firstly, only Singaporeans can buy Preferred Lot HDB flats through the resale market. Private home owners will have to wait 30 months after the sale of their homes before they can buy such HDB flats, and resale buyers will also face income ceiling requirements.
Secondly, the authorities will allow families who meet the income ceiling requirement for pre-purchased HDB flats to buy resale HDB flats in prime locations. The income ceiling is currently set at $14,000.
Will existing HDB flats be affected?
The new classification will not be applied to existing HDB flats.
In addition, it should take more than 10 years before HDB flats in the Preferred Lots are available for resale, as owners of Preferred Lots will be required to fulfil the 10-year minimum residency requirement in the future. The authorities will continue to monitor the impact of the new measures and review them as necessary.
