About 80% of Singapore’s resident population calls an HDB flat their home, and 90% of them own this home. Many young couples also rely on the BTO (Built-To-Order) system to buy their first homes – and start their married lives.
With that in mind, it may be important to understand the key life stages of your HDB homes – from the time they start building up to the end of their 99-year lease.
From State Land To HDB BTO Projects
The first thing we should know is that HDB has to acquire land from the Singapore Land Authority (SLA), which acts as custodian for state land set aside for public housing. The price paid for the land will reference the Fair Market Value, which is determined by the Chief Valuer (CV).
Since state land is considered part of Singapore’s reserves – the Chief Valuer’s appointment requires the President’s concurrence.
According to HDB’s FY2023 annual report, it incurred $8.3 billion purchasing state land during the year.
Read Also: Singapore’s National Reserves: What Is It And What Can They Be Used For?
Before BTO Flats Are Built
Today, new HDB flats are first offered to the public via the BTO system. About 3 to 4 times a year, there will be a BTO sales launch. For example, the February 2025 BTO sales launch will offer more than 5,000 new flats across Kallang/Whampoa, Queenstown, Woodlands and Yishun.
With the BTO system, HDB assess the demand for the projects and will only start construction if the demand exceeds 70% of the project supply.
While this may feel unnecessary with the hot demand today, it was the whole reason for the introduction of the BTO system in 2001 – following the aftermath of 1997 Asian Currency Crisis, where HDB was stuck with 31,000 unsold flats that took more than 5 years to sell off.
Unsold BTO Flats Are Offered A Second Time Under The SBF Scheme
Through Sale of Balance Flats (SBF) exercises, balance units from earlier BTO launches, as well as surplus Selective En Bloc Redevelopment Scheme (SERS) replacement flats and repurchased flats, are offered to the public.
For example, alongside the BTO sales launch in February 2025, there will also be the largest-ever SBF exercise offering more than 5,500 flats across various towns and estates.
Read Also: Step-by-Step Guide To Applying For Sales Of Balance Of Flats (SBF)
Unselected SBF Flats Are Offered Through Open Booking of Flats
The Open Booking of Flat option was introduced in June 2019. Again, while it’s hard to imagine that there are surplus flats that no one booked at BTO launches and a subsequent SBF exercise, this used to be the case pre-COVID-19.
While there was never a very extensive selection of flats due to consistent demand for public housing, the Open Booking of Flats scheme allowed year-round booking of flats.
Read Also: Complete Guide To Understanding And Applying Under HDB’s Open Booking Of Flats Option
Construction Of HDB Flats
HDB flats typically take between 3 and up to about 5 years for more complicated projects. In recent years, HDB has also offered BTO flats with Shorter Waiting Times (SWT) of under 3 years.
This starts from the BTO sales launch, and obviously does not wait for the flats to be bought at the SBF exercise or after the Open Booking of Flats.
For example, in the October 2024 BTO sales launch, the Central Trio @ AMK project had the longest estimated waiting time of 59 months, while the West Brickville @ Bukit Batok project had the shortest estimated waiting time of 24 months.
TOP Date For HDB Project
While new HDB flats are being constructed, homebuyers have a chance of checking the building progress via the My HDBPage portal.
Only after a project achieves its Temporary Occupation Permit (TOP), can flat buyers collect their keys and start moving into their flat.
At this point, though, surrounding amenities and landscaping works may not be completed yet.
Read Also: 6 Dates That HDB BTO Flat Buyers Need To Know That Are On Their Agreement For Lease
Collecting The Keys To Your HDB Flat
One piece of information you should have in hand at the point of booking your flat is the Probable Completion Date (PCD) – which is an estimated completion date of the flat. In contrast, the Delivery Possession Date (DPD) refers to the contractual date that HDB is required to deliver the flat.
During the COVID-19 pandemic, there were many flats that were delayed beyond their Probable Completion Date, but only a minority of projects were delayed beyond their Delivery Possession Date. For these projects, HDB paid out monetary reimbursements.
HDB will invite homeowners to collect the keys once their flats are available.
Defects Liability Period (DLP)
HDB provides a 1-year Defects Liability Period (DLP) to new flat owners, from the day of keys collection. A temporary Building Service Centre (BSC) will be located within walking distance of the new flats.
For defects reported during the DLP, HDB will arrange for the building contractor to carry out the necessary repairs.
Beyond this, there is a 5-year warranty for ceiling leaks and external wall seepage, and a 10-year warranty for spalling concrete.
Minimum Occupation Period (MOP)
Another key life stage of BTO flats is the Minimum Occupation Period (MOP) – where home owners can sell the flat after staying in it for a minimum number of years. Those who buy Standard flats will have an MOP of 5 years, while those who buy Plus and Prime flats have an MOP of 10 years.
At this stage, they can also rent out the entire flat without constraint. Before the MOP, home owners can only rent out rooms while living in the flat.
Note that owners of Prime Flats cannot rent out the entire flat even after their MOP.
Read Also: 6 Lesser-Known Facts About Minimum Occupation Period (MOP) For Singaporeans
Flat Rejuvenation Under HIP And NRP
Generally, as flats age, they will need upgrading and rejuvenation. Flats that are 30 to 40 years old will enjoy a first round of Home Improvement Programme (HIP) – to help residents with common maintenance issues.
In the pipeline, there is an HIP II programme aimed to be a second round of home upgrading and rejuvetion once flats reach the 60 to 70 years age.
Eligible flats may also fall within a more comprehensive upgrading programme, termed the Neighbourhood Renewal Programme (NRP).
Read Also: Guide To HDB’s Home Improvement Programme (HIP)
Voluntary Early Redevelopment Scheme (VERS)
Unlike SERS, which is mandatory, VERS is meant to offer residents an option to undergo early redevelopment once their flats are 70 years or older. While this scheme has not launched, it could be an attractive option for homeowners who want to move into newer flats.
Participate In HDB’s Lease Buyback Scheme (LBS)
The Lease buyback Scheme (LBS) enables HDB homeowners to monetise their flats by selling part of the remaining lease back to HDB. While one criteria is that homeowners must be 65 years, another criteria also pertains to how old the HDB flat is.
The minimum lease that can be sold back to HDB is 20 years – which means the flat must be 79 years or younger.
Leasehold Period
HDB flats are sold on 99-year leases, and once a home hits the 99-year mark, it will go back to the government.
This is also why the VERS scheme, once flats reach the 70 years-mark, could be a good alternative.
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