Higher BTO, resale flat demand expected after income ceiling raised, supply can keep up: Analysts
While demand is likely to increase, analysts noted that many flats could enter the resale market in the coming years.
Analysts predict higher demand for public housing, including BTO flats and resale units, following the increase in income ceiling for flat purchases in Singapore. The government raised the income ceiling to $16,000 for families and $8,000 for singles, up from $14,000 and $7,000 respectively. This change will allow more buyers to afford flats, particularly BTO units which are significantly cheaper than resale options.
In 2026, HDB plans to launch around 19,600 BTO flats, with 4,000 having waiting times of less than three years. Additionally, about 13,500 flats will reach their minimum occupation period (MOP) in 2026, with this number growing to 15,000 in 2027 and 19,500 in 2028, providing ample supply for the increased demand.
Some analysts suggest that higher-income buyers might shift their focus away from larger, more expensive resale flats and towards BTO flats with shorter waiting times or superior locations. This could potentially drive up prices in the resale market, although some experts doubt a significant surge in demand for existing executive condominiums (ECs) due to recent policy changes.
HDB resale prices experienced a decline in the first two quarters of 2026, and while new EC prices have shown a rise, market factors like loan availability and overall affordability will ultimately determine sales success.
Written by urgent.news from Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
