Five Things You Should Know About the Prime Location Public Housing (PLH) Model

Nov 2021 - 5 min read

The Ministry of National Development (MND) and the Housing & Development Board (HDB) announced the Prime Location Public Housing (PLH) model last month.

This new model ensures that new public housing built in prime, central locations like the city centre and the Greater Southern Waterfront will remain affordable and accessible for Singaporeans from different walks of life.

Here are the five key things to know about the new PLH model.

#1 Why do we need a PLH model?

New flats in prime locations would naturally command higher market values given their attractive locations and attributes. Left to market forces, it is likely that only the better-off would be able to afford housing in these locations, as we see in many cities around the world. We are determined not to let this happen in Singapore and we are committed to keep public housing, even in prime and central locations, within the reach of Singaporeans. 

#2 Where will this new public housing model apply?

The PLH model will apply for selected public housing projects in prime and central locations like the city centre and surrounding areas, including the Greater Southern Waterfront. The PLH model will not be retrospectively applied to existing flats.

The first projects launched under the PLH model are River Peaks I and II, located along Kelantan Road and Weld Road.

#3 Will there be additional subsidies for PLH flats?

New PLH flats are priced with additional subsidies, on top of the substantial subsidies already provided for BTO flats today. These additional subsidies help to keep PLH flat prices affordable for a wider range of Singaporeans.

When PLH flat owners sell their homes, HDB will recover a predetermined percentage of the resale price of the flat, which commensurate with the extent of the additional subsidy provided at sale. This subsidy recovery is in place to be fair to other BTO flat owners who do not receive these additional subsidies. For the pilot projects, River Peaks I and II, the subsidy recovery rate is at 6% of the higher of the resale price or valuation.

All prevailing grants such as the Enhanced CPF Housing Grant (EHG) of up to $80,000, will continue to apply for eligible applicants who buy a PLH flat.

#4 What are the eligibility conditions for the purchase of PLH flats?

To buy a new PLH flat, you must meet the prevailing BTO eligibility conditions such as being a Singaporean household and meeting the household income ceiling, currently set at $14,000.

Beyond the initial purchase, subsequent flat buyers of resale PLH flats will also have to meet the prevailing eligibility conditions for the purchase of BTO flats. This helps to ensure that PLH flats remain accessible to a broad group of subsequent flat buyers over time.

#5 What is the MOP for a PLH flat? Can I rent out spare bedrooms or the whole flat?

Given the prime locations and additional subsidies provided for PLH flats, PLH flat owners will need to live in their flats for at least 10 years before they can sell them or invest in a private residential property. This measure helps to safeguard PLH flats for families with genuine housing needs and discourage speculative demand. 

While owners of PLH flats may rent out spare bedrooms, renting out of whole flats is not allowed even after MOP.

For more information on the PLH model, please refer to: https://www.hdb.gov.sg/cs/infoweb/residential/buying-a-flat/finding-a-flat/standard-plus-and-prime-housing-models

Information accurate as at 29 November 2021