SINGAPORE: Newly appointed National Development Minister Chee Hong Tat has identified the affordability of HDB resale flats as a key priority for his ministry.
Speaking to reporters on 28 May, just five days after assuming his new role, Chee acknowledged the challenges posed by rising resale prices and pledged to address them with sustained housing supply and supportive policies.
“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 said during a visit to the Toa Payoh Ridge BTO project.
Chee, sworn in on 23 May and formerly Minister for Transport, noted that the Covid-19 pandemic had significantly slowed BTO flat construction, pushing many buyers into the resale market and contributing to price pressures.
He said that resale prices are expected to moderate as more flats reach their minimum occupation period (MOP) from 2026. About 13,500 flats will hit MOP in 2026, up from 8,000 in 2025, and this will increase further to 19,500 by 2028.
Since October 2024, all Standard BTO flats have carried a five-year MOP, while Plus and Prime flats have a ten-year MOP. Before this change, most BTO flats had a five-year MOP.
Chee highlighted that HDB had already exceeded its target of launching 100,000 BTO flats between 2021 and 2025.
He added that HDB remains on track to deliver keys to 19,000 households in 2025, with 7,000 households having received theirs so far.
To improve move-in experiences for new residents, especially in developments situated farther from town centres, Senior Minister of State Sun Xueling has been tasked with reviewing current support mechanisms.
In addition to new housing, Chee said older estates must remain “good homes for residents of all ages”.
He pointed to ongoing efforts under the Remaking Our Heartland initiative and the Silver Upgrading Programme, which add senior-friendly features to already upgraded precincts.
These renewal efforts, he said, require collaboration across various ministries.
The concern around housing affordability is compounded by continued price increases. HDB resale prices rose by 1.6 per cent in the first quarter of 2025.
This marks the 20th consecutive quarter of positive resale price growth. If the flat 0.0 per cent change in the first quarter of 2020 is also included, it extends the streak to 23 quarters—setting a new record.
According to a report by OrangeTee Group, this surpasses the previous longest streak of 20 quarters, which ran from the fourth quarter of 1991 to the fourth quarter of 1996.
However, million-dollar flat transactions have also hit record highs. April 2025 saw 141 resale flats transacted for at least S$1 million, according to data from SRX and 99.co.
To manage price growth, the Government introduced a 15-month wait-out period in September 2022 for private property owners seeking to buy HDB resale flats.
Chee clarified that the measure was intended to be temporary. “I hope that when the situation improves… we are able to consider reviewing or even removing this restriction,” he said.
The impact has been significant. Between January and September 2022, private property downgraders made up 34 per cent of buyers of million-dollar flats. After the restriction, their share dropped to 12 per cent between January and November 2024, according to former Minister Desmond Lee.
On the issue of lease decay, Chee reiterated that the Ministry is still studying possible solutions and will share more details when ready.
Lease decay refers to the gradual decline in the value of HDB flats as their 99-year leases approach expiry. Under current rules, once a flat’s lease runs out, ownership reverts to the state, and the property effectively holds no value.
This has caused growing concern among ageing homeowners, particularly those living in mature estates, who are increasingly worried about the long-term value of their homes. Many fear the financial impact on their retirement adequacy, especially if significant amounts of their Central Provident Fund (CPF) savings were used to purchase their flats.
The Voluntary Early Redevelopment Scheme (VERS), announced in 2018, has yet to be implemented and is only expected to be rolled out after 2030. The scheme would allow owners of flats aged 70 years and older to vote on a government buyback before the end of the 99-year lease.
When asked in February 2025, Prime Minister Lawrence Wong said, “We will provide details… eventually,” deferring further elaboration to the Ministry of National Development.
This response contrasts with earlier remarks made by Wong in 2018 when, as National Development Minister, he stressed the importance of early clarity for homeowners facing lease expiry.
The matter of VERS was brought up by various political parties in the recent General Election, including Workers’ Party leader, Pritam Singh.
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Reflecting on his new role, Chee said that both his previous and current portfolios—Transport and National Development—require long-term planning and close cooperation with government, employers, and unions.
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