What do the new HDB classifications mean for SG’s property market?

The new HDB classifications in Singapore (Prime, Plus, and Standard) have significant implications for the property market.

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Prime flats are centrally located, Plus flats are close to key amenities, and Standard flats remain as they are.

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Key differences include a 10-year Minimum Occupancy Period and a Subsidy Recovery for Prime and Plus flats.

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Existing resale flats are not affected, potentially leading to increased interest in older flats in desirable areas. Although lease decay may affect their appeal over time.

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The new classifications may mitigate windfall effects but it may also deter HDB upgraders due to the lengthy waiting period. Fewer upgraders might emerge if the quality and location of Prime and Plus flats are convincing, potentially moderating demand in the long run.

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For those of you who view your HDB flat as an asset or stepping stone, Standard flats may be a more practical choice as it offers more flexibility and shorter waiting times.

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For more in-depth explanation, read here: https://singledigitmillionaire.com/hot-button-t...