To curb the “lottery effect” of new BTO flats, MND, and HDB introduced a new initiative called the Prime Location Public Housing (PLH) Model on 27 October 2021. The PLH Model is implemented to ensure that public housing in prime and central locations, including the city centre and the Greater Southern Waterfront, remains affordable and inclusive to all Singaporeans.
However, as revealed during the National Day Rally 2023, new flats will be categorised under Standard, Plus, and Prime starting from the October 2024 BTO sales launch onward, replacing the older classifications of mature and non-mature estates.
PLH flats fall under the Prime category in this new HDB BTO classification.
What kind of flats fall under the Prime/PLH model? What are the eligibility criteria for purchasing Prime flats? Could I flip my flat once the MOP expires? Several conditions apply for Prime/PLH flats that might differ from when you purchase a standard BTO.
Here are the things you should know…
Table of contents
7 things you should know about HDB’s Prime Location Public Housing (PLH) Model – or just Prime flats, now
1. Location of the HDB PLH flats: What’s considered a Prime flat?
The very first PLH project launched by HDB is River Peaks I & II, in Rochor in the Central Area. It was offered during the November 2021 BTO sales launch. We can say that River Peaks I and II are in a prime area, given that Jalan Besar MRT is just in front of the projects.
This means residents here will enjoy the convenience of having access to three MRT lines within walking distance: Downtown Line (Jalan Besar MRT, Rochor MRT, Bugis MRT, and Little India MRT); East-West Line (Bugis MRT); and North-East Line (Little India MRT).
However, what’s considered prime is not limited only to the Central Area. From the first introduction of PLH until now, four neighbourhoods are constantly considered ‘prime’: Central Area, Queenstown, Kallang/Whampoa, and Bukit Merah.
PLH/Prime BTO launch in 2024
| February 2024 BTO | Tanglin Halt Courtyard in Queenstown |
| June 2024 BTO | Tanjong Rhu Riverfront I and II in Kallang/Whampoa, Holland Vista in Queenstown |
| October 2024 BTO | Crawford Heights in Kallang/Whampoa |
What these locations have in common is that they’re all in the city fringe and are typically where you see million-dollar flat transactions. Another thing we notice is that these Prime flats are within a 10-minute walking distance of the MRT (according to Google Maps, at least).
So for future BTO flats launched by HDB, we can expect those in these areas and are within a quick walk of an MRT to fall under the Prime category.
2. Subsidy clawback
Given the additional subsidies enjoyed when you buy a PLH flat from HDB, return a portion of the subsidy should you sell your flat in the resale market.
When the PLH model was first announced, the government said that the subsidy recovery percentage would be equivalent to the initial additional subsidy provided.
As of this update, for the PLH flats launched so far, the subsidy recovery has been at 6%. So it remains to be seen if HDB will change the subsidy recovery percentage for future launches.
Another thing to note is that the clawback is only applicable when the flat is resold in the open market for the first time. So as a homeowner of a resale PLH flat, if you’re planning to sell it in the future, you won’t be subjected to the subsidy recovery.
3. Reduced quota for Married Child Priority Scheme
The eligibility criteria for buying a flat under the PLH will be the same as that of BTO.
However, a lower quota will be set aside for those applying under the Married Child Priority Scheme (MCPS). The scheme allows priority for those who wish to live with or close to their parents or married child. Currently, the quota is set at 30% for first-timers and 3% for second-timers.
According to the initial PLH announcement. the quota will be adjusted depending on the location of the projects.
But for the PLH flats launched so far, the quota has been set at two-thirds of the usual quotas. Here’s a breakdown of the MCPS quota for PLH and non-PLH flats.
| PLH flats | Non-PLH flats in mature estates | |
| First-timers | 20% | 30% |
| Second-timers | 2% | 3% |
4. Tightest HDB resale restrictions
Unlike typical HDB resale flats, there will be more restrictions if you’re buying a Prime flat in the resale market. These restrictions will apply until around half of the 99-year lease of the flats before the government considers a review.
HDB resale restrictions for Prime flats include:
- Resale buyers have to meet full BTO eligibility criteria; imposed income ceiling of $14,000 for families and $7,000 for singles.
- At least one buyer must be Singaporean when buying a resale Prime flat.
- 30-month wait-out period for private property owners buying resale Prime flat; and other eligibility criteria.
HDB flats for sale in prime areas
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5. 10-year MOP
To prevent speculative demand, the Minimum Occupation Period (MOP) for Prime flats will be 10 years instead of the usual five years, before owners can sell them in the open market or buy a private residential property.
So these Prime flats are more for those who plan to live in the flat for the long term.
What this also means is that if it’s time to register your kid for Primary One, but you don’t live within a 1km radius of the desired school and you haven’t completed the 10-year MOP, forget about sending your kid there.
Because with the longer MOP, you need to physically live in the flat longer. So you won’t be able to rent another place closer to the school.
Another potential issue of Prime flats is that with the longer MOP, you need to wait longer before you can upgrade to a bigger home. This can be inconvenient, especially if you’re expanding your family.
6. No renting out of the whole unit
You’ll be prohibited from renting out the whole flat, even after the 10-year MOP has ended. You can still rent out your spare bedrooms if you wish to earn rental income. The same regulation also applies to the Plus flat category.
7. More housing options for Singles
At the National Day Rally 2023 speech, it was announced that singles now will have more housing options. They are no longer limited to applying for 2-room Flexi flats in non-mature estates. Instead, they can buy any 2-room Flexi BTO flat under any category, including the Prime flats. For singles buying a BTO flat, the BTO income ceiling of $7,000 remains unchanged.
What do you think about HDB’s Prime flats? Let us know in the comments section below.
If you found this article helpful, 99.co recommends PLH BTO vs mature estate BTO vs non-mature estate BTO: Which BTO to say “yes” to and Recently MOP-ed HDB that have sold double of BTO price.
Frequently asked questions
According to MND and HDB, these include projects in prime, central locations, such as the city centre and the Greater Southern Waterfront. The projects launched so far are in Rochor, Kallang/ Whampoa, Bukit Merah, and Queenstown.
The conditions are like buying a BTO. For instance, one applicant must at least be a Singaporean and form a family nucleus. The income ceiling will be S$14,000. These also apply for those buying these flats when they’re put on the resale market.
One main difference is that a PLH flat has a 10-year Minimum Occupation Period (MOP), as opposed to the typical five-year MOP. Owners also cannot rent out the whole unit after the MOP. There will also be a reduced quota for the Married Child Priority Scheme for those applying for a PLH flat, and a subsidy clawback for those selling the unit on the resale market.
About Ananda Bayu
Ananda has been wrangling Singapore's complex real estate trends into readable bites since 2020. She writes like she's explaining it to a friend over kopi — because who has time for jargon? When off the clock, she’s probably doom-scrolling through cat memes on X, convincing herself it's the highest tier of "creative inspiration".
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Can.me.and my.husband apply for other place with near by school.we first timr buying nw we staying.in a rental.house with my two kids
Yes, there are other BTO in other places available next month. 2 projects that are near schools are Hougang BTO (https://www.99.co/singapore/insider/bto-hdb-november-nov-2021-in-depth-review-hougang/) and Jurong West BTO (https://www.99.co/singapore/insider/bto-hdb-november-nov-2021-in-depth-review-jurong-west/).