Future Flat Sizes HDB BTO in Central Places May be Smaller

If we go by the recent HDB Built-to-Order trend, it might be the case that future central BTO will be smaller in sizes.

I observed that the latest HDB build to order sales launch was out and it seems rather peculiar that there were no launches in matured estate that is bigger than 4-room.

The biggest size flats for Toa Payoh Ridge and Kim Keat Ripples is 4-room. The sizing of the flats is deliberate and HDB should be under no constraint in their sizing.

Here are some of the past year launches:

My eyes were not playing games with me. But if you were to be strict about it, HDB is still releasing 5 RM HDB flats for a matured estate like Tampines.

A possible explanation is that they are starting to rationalize the supply of the new flats in these areas that are more central, and more in demand.

This would cause some frustration for newlywed young couples. For a long while, my friends prefer to stay in 4 RM or 5 RM HDB. They even lament that 4 RM is too small.

I always think that the sweet spot between affordability, cleaning, enough space, government subsidies is the 4 RM HDB.

Yet, when I spoke to Heartland Boy recently, you realize that there are some nuances that you will struggle to accomplish with a 3-RM flat. Heartland Boy stayed in a BTO similar to the new BTO above and has one daughter.

If you wish to create a better long term sleeping practice for another child, perhaps having only 2 rooms will not be very conducive.

I do get a feeling that there might be a push to rationalize affordability in these central estates.

I was initially thinking the government is saying: “If you want a bigger, yet central flat, go for those older ones. I have already given you the grants to make it more affordable. The leases are shorter but it will fit your needs.”

In matured estates, there should be ample supply of existing 3 RM and 4 RM HDB.

If this trend continues, it may be bad news for some couples. I know of folks who cannot stand living in a place that was inhibited by someone previously. It is damn weird but if that is the case, you would either

1. get a new BTO further
2. get a new Condo instead

You got to pay a higher cost.

I invested in a diversified portfolio of exchange-traded funds (ETF) and stocks listed in the US, Hong Kong and London.

My preferred broker to trade and custodize my investments is Interactive Brokers. Interactive Brokers allow you to trade in the US, UK, Europe, Singapore, Hong Kong and many other markets. Options as well. There are no minimum monthly charges, very low forex fees for currency exchange, very low commissions for various markets.

To find out more visit Interactive Brokers today.

Join the Investment Moats Telegram channel here. I will share the materials, research, investment data, deals that I come across that enable me to run Investment Moats.

Do Like Me on Facebook. I share some tidbits that are not on the blog post there often. You can also choose to subscribe to my content via the email below.

I break down my resources according to these topics:

1. Building Your Wealth Foundation – If you know and apply these simple financial concepts, your long term wealth should be pretty well managed. Find out what they are
2. Active Investing – For active stock investors. My deeper thoughts from my stock investing experience
3. Learning about REITs – My Free “Course” on REIT Investing for Beginners and Seasoned Investors
4. Dividend Stock Tracker – Track all the common 4-10% yielding dividend stocks in SG
5. Free Stock Portfolio Tracking Google Sheets that many love
6. Retirement Planning, Financial Independence and Spending down money – My deep dive into how much you need to achieve these, and the different ways you can be financially free
7. Providend – Where I used to work doing research. Fee-Only Advisory. No Commissions. Financial Independence Advisers and Retirement Specialists. No charge for the first meeting to understand how it works
8. Havend – Where I currently work. We wish to deliver commission-based insurance advice in a better way.