Choosing your first HDB home: Standard, Plus or Prime?

Singaporeans are a lucky lot, even though some of us may not admit it.

We have a world-class education system. The National University of Singapore and Nanyang Technological University are consistently ranked among the top global universities.

We have a world-class healthcare system, which is always ranked among the best in the world.

The air quality is good and the streets are safe at night. The unemployment rate is low and home prices are relatively affordable.

As of 2025, the house-price-to-income (HPI) multiplier for HDB resale flats is estimated at 6.3, which is slightly lower than 2015’s level. This means that a family nucleus consisting of two working adults will need 6.3 years of their annual income to buy a HDB resale flat.

Read also: A changing tide in the HDB resale market?

The median income of Singaporeans has broadly kept pace with the rise in HDB resale flat prices, ensuring affordability.

Buyers have often turned to the resale market, not necessarily by choice but because HDB policies either render them ineligible to buy a new flat or limit the supply of certain flat typologies. For example, HDB has stopped building five-room flats in certain locations.

Build-To-Order flats as an affordable option

For many Singaporeans, a HDB resale flat is not their only option for affordable housing.

Singapore has one of the best public housing programmes in the world. HDB, through its Build-To-Order (BTO) exercises, offered more than 200,000 flats from 2015 to 2025, or an annual average of around 18,250 flats.

These flats are always priced lower than comparable resale units, making them within reach of Singaporeans. In addition, subject to eligibility conditions, buyers can receive up to $120,000 in grants.

The HPI for BTO flats is lower than that for resale flats.

Some of these BTO homes have been well sought-after, subsequently changing hands for more than a million dollars in the resale market after fulfilling the five-year minimum occupation period (MOP).

The most expensive five-room resale flat to-date was in City Vue @ Henderson, sold for $1.728 million in April 2026.

Read also: Bishan executive maisonette just sold for $1.65 million — among five highest HDB resale prices

As of mid-July 2026, more than 5,000 HDB owners have sold their flat for $1 million or more, earning significant windfall gains.

To curb the lottery effect, HDB introduced the Standard, Plus and Prime Location Public Housing classification for BTO flats starting October 2021.

Standard flats come with significant market discounts and have a five-year MOP. Plus flats are in choicer locations while Prime flats sit in the choicest ones. Plus and Prime flats are given additional subsidies to keep them affordable but they face tighter resale and rental conditions, one of which is a 10-year MOP.

Additional subsidies notwithstanding, Plus and Prime flats were still more expensive than standard flats.

For example, a 90 sq m (968.7 sq ft) four-room flat at Berlayar Rise, a Prime project in Bukit Merah, was priced from $592,000 in the June 2026 BTO exercise. In contrast, a 93 sq m four-room flat in Woodgrove Acres, a Standard project, was available from $353,000 during the same sales exercise.

As a buyer, finding the perfect flat can present a conundrum.

If they want a bigger flat in a central location, it is likely to be expensive. If they prefer a central locale but have a lower budget, the flat is likely to be smaller. If they have a lower budget but want a spacious home, the location will probably be farther from the city centre.

Read also: A three-room flat in Toa Payoh was recently sold for $890,000, a new record for its flat type in the estate

It is rare to find a big flat in a central location at a low price at the moment. Perhaps, it may be possible in the future when lease decay takes root.

Hence, some compromises will have to be made.

Tough choice between Standard, Plus and Prime flats

How should a buyer choose then if they are eligible to buy a BTO flat?

They could perhaps start by asking: After taking possession of the flat, will I be able to move to another property within the next five to 10 years? The next property could be another flat, an executive condo unit or a private residential apartment.

If the answer is no, the buyer should go for the best location and biggest unit they can afford. After all, this may become their forever home. A Plus or Prime flat could be an obvious choice.

In October 2024, when HDB allowed singles to apply for BTO flats anywhere in Singapore, there was a surge in applications by singles, particularly for Plus or Prime BTO projects.

From October 2024 to June 2026, the application rate among singles for Plus and Prime flats was between 4 and 111.4, compared to between 3.6 and 43.9 for the Standard counterparts.

A downside of getting a Plus or Prime flat is the longer construction period, which can stretch to as long as 59 months. If the buyer foresees themselves moving soon after fulfilling the MOP, perhaps it may be better to retain some flexibility by opting for a Standard flat. The construction period and MOP are shorter for that category.

Let us consider a newlywed couple buying a BTO flat. The median age at first marriage for a groom and bride was 30.9 years and 29.4 years, respectively, in 2024. Assuming a construction timeframe of four years, they will be eligible to sell their Standard flat when they are around 40 years old. This leaves them with a comfortable loan tenure of up to 25 years for their next home purchase.

This stands in sharp contrast to Plus and Prime flats. The couple will fulfil the five-year MOP only when they are around 46 years old. For their next property purchase, their loan tenure will be up to 19 years, which is much shorter and will result in a higher monthly loan installment.

Besides, if property prices appreciate during the additional six-year period, they may potentially be priced out by the time they are ready to purchase their next home.

Evolving environment requires an updated playbook

Fortunately, couples who want to buy a Plus or Prime flat can still take a longer loan tenure for their next property purchase.

Subject to eligibility conditions, young couples may apply for a flat and defer the income assessment for the Enhanced CPF Housing Grant (EHG) and HDB housing loan. During the flat booking appointment, applicants will be informed if they are eligible for the Staggered Downpayment Scheme (SDS).

The downpayment is 2.5% of the purchase price during the signing of Agreement for Lease, compared to 5% if they are not eligible for SDS. For example, a Plus or Prime flat priced at $600,000 will need a downpayment of $15,000 instead of $30,000.

This will ease the upfront cost of buying a flat for young couples.

A young couple who applies for a Plus or Prime flat at the age of 24 and sells it on fulfilling the 10-year MOP, may still qualify for a loan tenure of up to 25 years for their next property purchase.

Even if they do not intend to sell the Plus or Prime flat, they can still apply for Deferred Income Assessment (DIA) to buy a flat in a choice location.

DIA and SDS are applicable to Standard flats as well.

Is BTO the obvious choice?

For buyers who are ineligible to buy a BTO flat, they can avail themselves of the wide-ranging options in the resale market. First-time families may qualify for an EHG of up to $120,000.

The government is committed to ensuring eligible Singaporeans can own their home through its public housing programmes.

Various grants and policies have been introduced and enhanced over the years to keep public housing accessible and affordable.

For eligible buyers, the BTO flat is the obvious choice. However, they will have to hope for the luck of the draw in the ballot queue.