Singapore, 27 Oct 2021 The introduction of the new Prime Location Public Housing (PLH) model is unlikely to have major impact on private residential demand. The new model aims to keep HDB flats located in prime areas affordable and inclusive.
Christine Sun, OrangeTee & Tie's senior vice-president of research and analytics, said buyers who are able to afford private homes in the prime and city fringe will not be turning to the HDB market upon the introduction of the scheme.
“This is because they are buying private homes for the facilities, privacy, price appreciation, and potential rental yield that will not be equally matched if they were to buy HDB flats,” she said.
She added that the number of units offered under the scheme is “very small”, which means the majority of build-to-order (BTO) flat applicants will still have to buy other housing types.