Affordability of resale flats a key priority, says new National Development Minister

The affordability of Housing Board resale flats is a key priority for the Government, said National Development Minister Chee Hong Tat.

- Isabelle Liew

"This is an important area for my ministry and me. We want to see how we can help to address this concern at the heart of it," he told reporters on May 28, five days after assuming the national development portfolio.

Mr Chee attributed higher resale flat prices to the Covid-19 pandemic, which slowed the construction of Build-To-Order (BTO) flats and drove some home buyers to the resale market.

Resale prices are expected to moderate in the years ahead as more flats reach their minimum occupation period (MOP) from 2026, he said. About 13,500 flats will reach their MOP in 2026, up from 8,000 in 2025. In 2028, this will rise to 19,500 flats.

From October 2024, a Standard BTO flat comes with a five-year MOP, during which the owners must reside physically in the unit before it can be resold. Plus and Prime flats have a 10-year MOP.

Before this, most BTO flats had a five-year MOP.

Mr Chee, who was sworn in as Minister for National Development on May 23, was speaking to the media during a visit to the Toa Payoh Ridge BTO project in his Bishan-Toa Payoh GRC.

Home owners at the 920-unit project in Lorong 1 Toa Payoh, which was launched for sale in February 2020, started collecting the keys to their flats last week.

Mr Chee said his ministry will continue to have a strong supply of new BTO flats, building on the work of former national development minister Desmond Lee.

For instance, HDB had exceeded its target of launching 100,000 BTO flats from 2021 to 2025.