Please find below Realion (OrangeTee & ETC) Group’s commentary on MND's announcement at COS 2026.

The current shortage of new flats in the Outram area has resulted in resale flat prices at Pinnacle@Duxton rising continuously, with many units exceeding one million dollars. According to data.gov.sg, the average resale price of flats at Cantonment Road, where Pinnacle@ Duxton also sits, rose by around 45 per cent from $1.00 million in Q1 2021 to S$1.45 million in Q1 2026 (Jan-Feb).

Increasing housing supply will help to slow down the rate of price growth for HDB resale flats in the area, making housing more affordable for those who wish to live closer to the downtown area. Eligible buyers will likely be attracted to these new BTO flats rather than resale options, as these flats are highly subsidised and well located with easy access to an MRT station and upcoming shopping mall.

On the classification front, these flats are likely to be Prime flats that entail a 10-year minimum occupation period. The clawback subsidy rates are likely to exceed 14 per cent  – surpassing the highest rate previously applied to flats in Belayar Residences at Telok Blangah.

Increasing new housing supply in Toa Payoh is a positive move, given that it is one of Singapore’s oldest housing estates. Through urban renewal, along with the addition of new developments and increasing a younger population of dwellers, it will help rejuvenate the area and ensure its long-term sustainability.

In the Caldecott area, many two-room flexi flats and community care apartments (CCAs) will soon be launched. Strong future demand for CCAs in Toa Payoh is expected, on the back of Toa Payoh being an older estate with a higher proportion of elderly residents who may require more accessible housing and medical facilities. However, HDB resale prices in Toa Payoh have been on the rise. Consequently, many seniors may be interested in applying for subsidised housing that include elderly friendly features designed to meet their needs.

The last BTO launch in this area was Toa Payoh Ascent. Offered as Prime flats, it received a strong overall application rate of 8.3, with 6,155 applicants vying for 741 units. Therefore, new flats launched in this area are expected to similarly attract strong interest.

This will likely be launched under the government land sales programme as a mixed-use site. The most recent mixed-use commercial and residential development near and/or integrated with an MRT station was the site at Hougang Central, which was awarded at a land rate of S$1,179 psf ppr. Therefore, for the new site at Caldecott, we expect strong interest from developers, as well as buyers for the new project, given the good location and limited private land supply in the area.

With more housing completions in recent years in areas such as Bidadari, Marymount, and Serangoon, the increase in retail options is timely to meet the increased demand among residents.

The announcement highlights the government's readiness to launch new flats even in land-scarce areas to maintain housing affordability. To intensify land use, taller buildings will be built and this is a good strategy to optimise land use in developed estates with limited land. However, this approach may result in longer construction time due to complexities in building high-rise structures. Homeowners will also need to consider the potential trade-offs of living in environments with greater housing density, including increased noise and crowd levels.

As of 2024, 24.7 per cent of families in Singapore have 3 or more children, based on data from department of statistics Singapore. This percentage has held relatively steady, when compared to 26.7 per cent in 2021. Therefore, giving priority for these families will be timely, especially since the application rates of BTO flats have generally decreased over the years and large resale flat prices remain high in many mature estates.