Sarah Chen
Singapore just announced its most ambitious public housing pipeline in years. A record-breaking 60-storey BTO at Pearl's Hill will become the tallest HDB project ever built, while the June 2026 sales exercise offers roughly 6,900 flats across seven sites — including the first new public housing at Lakeview and Shunfu in over 40 years. For buyers preparing to ballot, the choices are exciting, but the financing decisions deserve just as much attention as the location shortlist.
National Development Minister Chee Hong Tat confirmed on 4 March 2026 that a 1,700-unit BTO will rise at the foot of Pearl's Hill, next to Outram Park MRT interchange (East-West and Thomson-East Coast lines). At least two blocks will exceed 60 storeys — surpassing Pinnacle@Duxton's 50-storey record. A 60-storey block provides roughly 50% more flats than a 40-storey block, intensifying land use in one of Singapore's last remaining city-centre hills.
The flat mix includes 2-room Flexi, 3-room, and 4-room units, plus over 140 public rental flats — but notably no 5-room flats. Industry analysts from ERA Singapore and Huttons Asia both read this as a strong signal of Prime classification, which carries a 10-year Minimum Occupation Period (MOP), resale restricted to Singapore Citizens, and an estimated subsidy clawback upon resale.
Estimated pricing (industry analyst projections):
| Flat Type | Estimated Starting Price |
|---|---|
| 2-room Flexi | From ~S$200,000 |
| 3-room | From ~S$400,000 |
| 4-room | From ~S$600,000 |
Pearl's Hill is part of a larger precinct redevelopment. Over the next decade, approximately 6,000 public and private homes will be built in the area, alongside conserved heritage buildings from the 1920s and 1930s. The architectural theme draws on Shan Shui Hua (山水画), a traditional Chinese landscape painting style depicting mountains and water in harmony — blocks of varying heights are designed to echo mountain ridges, with cascading water features and a tree canopy flowing from the adjacent Pearl's Hill City Park.
The project launches in the October 2026 sales exercise. Full details on classification and pricing will be confirmed at that time.
The June sales exercise spans Ang Mo Kio, Bishan (Upper Thomson/Lakeview), Bukit Merah (Berlayar), Sembawang, and Woodlands. Around half the flats are expected to fall under Plus or Prime categories. All required documents must be submitted by 15 May 2026.
June 2026 BTO sites at a glance:
| Location | Units | Flat Types | Nearest MRT | Expected Classification |
|---|---|---|---|---|
| Lakeview (Bishan) | ~1,200 | 2-room Flexi, 4-room | Marymount (CCL) | Prime |
| Berlayar (Bukit Merah) | ~1,960 | 2-room Flexi, 3-room, 4-room | Telok Blangah (CCL) | Prime |
| Ang Mo Kio Ave 2 | ~480 | 3-room, 4-room | Mayflower (TEL) | Plus |
| Ang Mo Kio (2nd site) | ~480 | 3-room, 4-room | TBC | Standard/Plus |
| Sembawang | ~800+ | 2-room Flexi, 3-room, 4-room | Sembawang (NSL) | Standard |
| Woodlands | ~800+ | 2-room Flexi, 3-room, 4-room | Woodlands North (TEL) | Standard |
The marquee project is the Lakeview BTO — five blocks ranging from 18 to 40 storeys, oriented to capture views of MacRitchie Reservoir. This is the first public housing in Upper Thomson in over four decades, and strong demand is widely expected given its proximity to top schools and the Circle Line. Realion (OrangeTee & ETC) estimates 2-room Flexi flats at S$230,000–S$370,000 and 4-room flats at S$550,000–S$750,000+, depending on floor height.
Berlayar returns for its second launch on former Keppel Club land — more than double the 880 units offered in October 2025. At ~100 metres from Telok Blangah MRT, it gives buyers early access to the Greater Southern Waterfront precinct.
From June 2026 onwards, the Third Child Priority Scheme (TCPS) allocation doubles from 5% to 10%, and families expecting their third child can now apply under the scheme — expanding eligibility for larger households.
Securing a ballot number is only the first step. Prime and Plus flats carry restrictions that directly affect long-term financing strategy. A few considerations worth working through early:
HDB loan vs bank loan. First-time BTO buyers can choose HDB's concessionary loan at 2.60% (pegged to CPF OA + 0.1%) or a bank loan. With 3-month compounded SORA at around 1.08–1.12% and bank fixed-rate packages starting from around 2.20%, the gap is significant.
| Loan Type | Rate | Monthly Repayment (S$500K, 25 years) | Total Interest Over 25 Years |
|---|---|---|---|
| HDB concessionary | 2.60% | ~S$2,270 | ~S$181,000 |
| Bank fixed (2-year) | 1.50% | ~S$2,000 | ~S$99,700 |
| Bank floating (SORA) | ~1.42% all-in | ~S$1,980 | ~S$93,600 |
The bank loan advantage is roughly S$270–S$290 per month at current rates — or about S$81,000–S$87,000 over the full tenure. However, an HDB loan requires only a 25% down payment (fully payable from CPF OA with no mandatory cash component, vs 25% for bank loans of which 5% must be cash), offers no penalty for early repayment, and provides more flexible terms during financial hardship.
TDSR at the 4% stress test. Banks assess affordability using a minimum 4% interest rate, not the actual contracted rate. For a S$600,000 loan over 25 years, the stress-tested monthly repayment is approximately S$3,160. A household earning S$8,000 gross monthly would already be using about 39.5% of income on housing alone — leaving limited room under the 55% TDSR cap for car loans, credit card balances, or other obligations. For HDB/EC purchases, the MSR cap of 30% adds a further constraint.
Progressive payments for BTO. Unlike resale, BTO buyers pay in stages as construction progresses. Monthly repayments remain small in the early years — an advantage for households still building savings. A SORA-linked floating package with a free conversion option is a common approach: it keeps costs low during construction while allowing a switch to a fixed rate closer to completion, when the full loan amount kicks in.
Subsidy clawback on Prime flats. The Lakeview Cascadia Prime BTO carries a 10% subsidy clawback, while Berlayar Rise carries 14%. For a 4-room Pearl's Hill flat purchased at S$600,000 in a location where comparable Pinnacle@Duxton resale units traded above S$1.3 million in 2025, the clawback could amount to S$100,000 or more. This does not erase the value proposition — but it changes the calculus for buyers treating public housing primarily as a stepping stone to private property.
The October 2026 ballot for Pearl's Hill — and the June ballot closing on 15 May — give buyers a defined preparation window. A few steps worth completing now:
Check HDB eligibility. First-timer status, citizenship requirements, and income ceiling compliance (S$14,000/month for families) must be confirmed before balloting. Apply for an HDB Flat Eligibility (HFE) letter early — it also provides a preliminary assessment of how much CPF and loan financing is available.
Understand your classification. Prime flats carry a 10-year MOP, resale restrictions to Singapore Citizens only, and subsidy clawback. Plus flats have similar constraints at a lower clawback rate (typically 6–12%). Standard flats offer maximum flexibility with a 5-year MOP and no clawback. The right classification depends on how long the flat will serve as a primary home.
Map out total costs. Beyond the purchase price, factor in Buyer's Stamp Duty (BSD), legal fees (~S$2,500–S$3,500), and renovation. A bare BTO typically costs S$40,000–S$62,000 to renovate for a 4-room flat.
Compare loan packages early. Bank rates change frequently. Locking in a competitive rate or identifying a package with a free conversion feature gives flexibility as construction progresses.
The 2026 BTO pipeline offers the most diverse set of locations in recent memory — from a landmark 60-storey tower in the city core to scenic reservoir-facing flats in Upper Thomson and waterfront living at Berlayar. First-timer application rates have fallen to 0.9 in the February 2026 exercise, the best ballot odds in years. The bigger challenge is no longer securing a flat; it is choosing the right one and structuring the financing to match. With bank rates near three-year lows, multiple classification tiers shaping long-term costs, and the TDSR stress test at 4% quietly limiting borrowing capacity, the mortgage decision matters as much as the ballot.
Legenda @ Joo Chiat outperformed every two-bedder in the Aljunied, Paya Lebar and Eunos corridor over the past decade because four factors aligned: boutique scale limiting competing supply, a lower entry price that amplified ROI, efficient unit layouts, and scarce new leasehold supply nearby. The lesson for buyers financing a two-bedder is not to chase the next Legenda, but to apply those same four checks to entry price, competing supply, loan flexibility and net return before committing to a loan.
Sarah Chen·24 Jul 2026
HDB checks your credit report during the HFE letter application, where it retrieves your CBS credit report in the background using your consent. The loan amount is then reassessed again before key collection, so changes in income or debt during the BTO waiting period can reduce the loan you qualify for. A Debt Management Programme does not automatically disqualify you but reduces your borrowing capacity through its impact on your MSR and TDSR.
Sarah Chen·15 Jul 2026© 2026 Cashew. All rights reserved.
