HDB Updates Flat Allocation Rules: More Opportunities for Singles and Families in 2025

A New Era for Public Housing Accessibility

Singapore's Housing & Development Board (HDB) has unveiled significant updates to its flat allocation system in the latest Build-to-Order (BTO) exercise, set to take effect from July 2025. These changes aim to support first-time singles, multigenerational households, and second-time buyers, while promoting family cohesion and housing stability across the nation.

Introduction of the Family Care Scheme (FCS)

The newly introduced Family Care Scheme (FCS) is a two-pronged initiative designed to better support intergenerational living and housing planning. It replaces several older schemes and introduces two new components:

1. FCS (Proximity)

FCS (Proximity) prioritises applicants who wish to live with or near their parents. Singles and families applying for BTO flats in close proximity to their parents will now receive greater priority.

• 30% of two-room flexi BTO flats (Standard & Plus projects) and 2% of Sale of Balance Flats (SBF) will be reserved for first-time singles applying under this scheme.

• For Prime flats, the reserved quota will be 20% for BTOs and 1% for SBFs.

This proximity-based approach replaces the Married Child Priority Scheme and the Senior Priority Scheme, streamlining support for families choosing to live close together.

2. FCS (Joint Balloting)

Launching in October 2025, the Joint Balloting component enables parents and children (regardless of marital status) to apply jointly for two units in the same BTO project. This initiative promotes multi-generation family support systems and will replace the Multi-Generation Priority Scheme.

Rebalanced Quotas for Second-Timer Families

Another significant policy shift involves increasing allocation for second-timer families in upcoming BTO exercises:

• Up to 20% of 3-room flats in Standard projects.

• Up to 10% of 3-room Plus/Prime flats, and 4-room or larger flats across all categories.

Despite these changes, first-time families will continue to receive 80% to 90% of the total allocation for 3-room and larger flats, preserving accessibility for new homeowners.

Enhanced Deferred Income Assessment (DIA) Scheme

HDB has also revised the Deferred Income Assessment (DIA) policy. Eligible couples may now apply for a BTO flat and delay income assessment for the Enhanced CPF Housing Grant (EHG) and HDB loan eligibility until just before collecting their keys.

Previously, both applicants needed to be full-time students or national servicemen to qualify. Under the updated scheme, only one party needs to meet this requirement, increasing flexibility for young couples.

Fresh Start Housing Grant Increased to $75,000

To better assist second-timer public rental families with children, the Fresh Start Housing Grant will be increased from S$50,000 to S$75,000.

These families can use the enhanced grant to purchase a 2-room flexi or 3-room Standard BTO or SBF flat, with the option of a shorter lease period to suit their financial planning needs.

July 2025 BTO and SBF Exercise: What to Expect

Approximately 5,500 flats across Bukit Merah, Bukit Panjang, Clementi, Sembawang, Tampines, Toa Payoh, and Woodlands will be made available in the July 2025 BTO launch. In addition, a concurrent SBF exercise will offer over 4,600 flats.

With updated policies, the BTO and SBF exercises now offer more inclusive opportunities for singles, second-timer families, and intergenerational applicants.

Conclusion:

The Housing & Development Board’s 2025 housing policy overhaul marks a progressive step toward inclusive and sustainable homeownership in Singapore. Through the Family Care Scheme, improved grant support, and rebalanced allocation quotas, more Singaporeans, regardless of marital status or housing history, can now plan for long-term housing with clarity and confidence. These enhancements underscore a national commitment to nurturing family ties and fostering equitable access to public housing.

Algene Toh

Senior Real Estate Salesperson

Asset Investment Brokers Pte Ltd

Email: admin@bsr2.com

Phone: +65 9008 8002

Visit us: profile

Disclaimer: The information presented on BSR2.com is intended for general informational purposes only. It does not constitute legal, financial, investment, or real estate advice and should not be relied upon as such. While every effort has been made to ensure the accuracy, reliability, and completeness of the content at the time of publication, all data is derived from publicly available sources and may be subject to change without notice. BSR2.com makes no representations or warranties of any kind, express or implied, regarding the suitability, timeliness, or accuracy of the information provided for any specific purpose. Users are strongly encouraged to seek independent advice from qualified professionals before making any decisions based on the content found on this website. BSR2.com shall not be held liable for any loss, damage, or consequence, whether direct or indirect, arising from the use of or reliance on the information provided. The content is intended as a general guide and does not take into account individual circumstances.