October BTO launch: 'White flats' and 6-9% subsidy clawback clause for Prime and Plus flats
SINGAPORE — The new Plus and Prime flats launched on Wednesday (Oct 16) will come with a subsidy clawback clause of between six and nine per cent, said the Housing and Development Board (HDB), as it rolled out 8,573 Build-To-Order (BTO) homes under a new flat classification system.
The new launch will sort BTO projects into the Standard, Plus and Prime categories based on their proximity to the city centre, transport connectivity and amenities. It replaces the system of demarcating estates as either mature or non-mature.
Plus and Prime flats, which are in more attractive locations, come with significant additional subsidies to keep them affordable, said HDB. It has said the subsidy recovery clause is needed to curb the «lottery effect» of owning flats in prime and central locations.
«To maintain parity with other BTO flat buyers who are not accorded additional subsidies, Plus and Prime flat owners will be required to pay HDB a percentage of the resale or valuation price (whichever is higher) of the flat upon selling it, after meeting the 10-year minimum occupation period (MOP),» said HDB on Oct 16.