Prime Location Public Housing (PLH)

Adjustments of the Prime Location Public Housing (PLH) model’s parameters might boost the demand for Built-to-Order (BTO) flats under the scheme, analysts suggest.

While the Rochor HDB flats— the first project launched through the scheme— saw an overwhelming application rate, the subscription for Bukit Merah Ridge and Ghim Moh Ascent in the recent Built-to-Order (BTO) exercise was comparatively moderate.

Noting the emphasis homebuyers place on space, analysts believe that larger units in prime locations would hold a greater appeal for homebuyers. The concentration of PLH projects in the Core Central Region— as defined by the segmentation of districts— coupled with the staggered launch of such flats, is likely to increase the attractiveness of projects.

Introduced last year, the PLH model sought to provide an opportunity for more Singaporeans to own a home in prime central locations.

Among a number of measures put in place to ensure the affordability of BTO flats in prime locations, homebuyers will be given additional subsidies. Should they decide to sell their flat after the minimum occupation period, they would be required to pay a percentage of the resale price commensurate with the additional subsidy provided for their initial purchase.

Deterring speculation of flats in prime locations is a key consideration for the formulation of the PLH model. Not only does the minimum occupation period (MOP) for PLH flats stand at 10 years, but homeowners can only rent out spare bedrooms, as opposed to leasing the whole flat.

While public rental flats are available for PLH projects as well, the criteria for purchasing PLH resale flats is currently more stringent than that for regular resale units. At present, PLH resale flats are inclined towards nuclear families, whereas single individuals aged 35 and above would be able to buy a typical resale flat.

Interested in purchasing a PLH flat, or simply a BTO flat? At Wonder Homes, we will guide you through the entire process so you can acquire the property of your dreams! Get in touch with us today.