Prime, Plus flats launched with 6% to 9% subsidy clawback clause

They are among 8,573 homes offered for sale under new flat classification system

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The new Plus and Prime flats launched on Oct 16 will come with a subsidy clawback clause of between 6 and 9 per cent, said the Housing Board, as it rolled out 8,573 Build-To-Order (BTO) homes under a new flat classification system.

The latest launch will sort BTO projects into Standard, Plus and Prime categories based on their proximity to the city centre, transport connectivity and amenities. It replaces the system of demarcating estates as either mature or non-mature.

Plus and Prime flats, which are in more attractive locations, come with significant market discounts to keep them affordable, said HDB. It has said the subsidy recovery clause is needed to curb the "lottery effect" of owning flats in prime and central locations.

"To maintain parity with other BTO flat buyers who are not accorded additional subsidies, Plus and Prime flat owners will be required to pay HDB a percentage of the resale or valuation price (whichever is higher) of the flat upon selling it, after meeting the 10-year minimum occupation period (MOP)," said HDB on Oct 16.

This launch has seven projects each under the Standard and Plus categories, with 4,988 Standard flats and 3,273 Plus flats on offer.

The only Prime project in Kallang/Whampoa, Crawford Heights, has 312 units for sale.

The subsidy clawback has been set at 9 per cent for the Prime project, and between 6 per cent and 8 per cent for the seven Plus projects.

Besides a subsidy recovery clause, Prime and Plus flats will have stricter resale conditions, such as a 10-year MOP.

When they hit the resale market in future, those looking to buy these flats must meet a household income ceiling of $14,000.

Standard flats will not have a subsidy recovery clause when they are sold, and will come with a five-year MOP.