2-room flats to be ramped up for newly married couples and families

It's set to almost double to 5,000.

According to PropertyGuru, with plans to reduce the supply of BTO units for newly married couples and families, the government looks set to ramp up the number of two-room flats in non-mature estates from previous estimates of 2,600 to 5,000 units in 2014. 

This will aim to re-distribute the allocation of resource from where demand is comparatively weaker (young families) towards a demographic with a higher number of applications – which will likely remain in the double digits in 2014.

Here's more from PropertyGuru:

Getty Goh, Director of real estate research firm Ascendant Assets said: “This is a political decision made by the government to cater to another demographic of Singaporeans who wish to own a home. In the bigger scheme of things, this policy is not going to have any significant impact on the HDB market, as there are more than 900,000 HDB units in total and 2,500 units make up less than 0.5% of the overall HDB stock.

While singles could consider buying resale HDB units in the past, prices of resale flats have gone up significantly in the last few years; many singles are presently finding it a challenge to afford something from the resale market. Hence, allowing them to buy directly from HDB is a timely move as it addresses the housing aspirations of this specific group of people,” he quipped.

Christine Li, Head of Research and Consultancy for Orange Tee added: “The new ruling allowing singles to purchase two-room Build-to-Order (BTO) flats provides those who cannot afford a resale flat a chance to purchase a home. While the intention is to look after the needs of those who have been previously sidelined, the government might also want to strike a balance between providing singles with more housing and encouraging Singaporeans to start a family.