With the booming of the HDB resale market, we have seen resale flat prices hitting a record high in the third quarter of this year. A record number of HDB flats has also been seen crossing over the $1 million mark, 174 to be exact, and in just the first nine months of 2021. A huge jump as compared to the 82 $1 million flats sold in the whole of last year. With all these in mind, the government has decided to bring about a new measure that would ensure that public housing remains affordable, especially in prime locations where most of the million dollar big ticket sales have been occurring. This new measure comes in the form of the new Prime Location Public Housing (PLH) model.
So what is the Prime Location Public Housing (PLH) model and why was it introduced?
The PLH model was first introduced on October 26 by National Development Minister Desmond Lee. It was introduced with the main aim of keeping public housing in prime/central locations like the city centre and the Greater Southern Waterfront affordable, accessible and inclusive for all Singaporeans both at the initial purchase and at subsequent purchase on the open market.
Who will be affected by the PLH model?
The PLH model only applies to future HDBs, not existing ones, so current home owners need not worry about the PLH model. For example, The PLH model will apply to the new pilot project at Rochor, which is a new BTO November 2021 sales exercise located along Kelantan Road. It will not, however, apply to older projects like the Pinnacle @ Duxton, for instance.
How many PLH model HDBs will there be?
According to Mr Desmond Lee, the exact number of projects launched each year under this model will depend on site availability and overall supply of flats across all towns. However, we do know that at least one prime location HDB project will be launched every year.