Expert cautions on new ‘white flats’: Flexibility may lead to higher costs and practical challenges

In a significant shift from traditional flat designs, the Housing Development Board (HDB) is set to pilot a new type of “white flat” in a Build-To-Order (BTO) project in Kallang-Whampoa this October, as announced by National Development Minister Desmond Lee.

Speaking at the Pre-University Seminar at the National University of Singapore on Monday, Mr Lee mentioned that during the Forward Singapore exercise, young Singaporeans expressed a desire for more flexibility to configure the spaces in their homes based on their needs at different life stages.

“We took this idea back and worked with our architects and engineers to see what we could do,” he said.

Additionally, Mr Lee highlighted that young Singaporeans deciding to purchase a flat shortly after starting work or finishing national service would benefit from a lower initial down payment.

From the BTO sales exercise in June, the upfront down payment for couples eligible for the deferred income assessment will be lowered to 2.5 percent of the flat price, down from 5 percent, under HDB’s Staggered Downpayment Scheme.

The project in Kallang-Whampoa will include 80 three-room units and 230 four-room flats on a site near Lavender MRT station, bounded by North Bridge Road and Crawford Street.

These flats will feature an open layout with no internal partitions, allowing homeowners to customize their living spaces from scratch.

On May 27, HDB described this layout as offering homeowners a blank canvas to design and personalize their flats according to their needs and preferences.

According to a Facebook post by Mr Lee on Monday, bedroom walls were removed in 23% of four-room HDB flats between 2020 and 2022.

However, property market experts suggest that prospective buyers should weigh both the benefits and potential challenges of this new concept.

Speaking to Gutzy on the introduction of “white flats”, Ku Swee Yong, CEO of International Property Advisor Pte Ltd, expressed cautious optimism about the initiative.

“While the concept of a customizable flat may appeal to young couples entering the BTO queue, they should be mindful that the lower initial cost might translate into higher future expenses due to renovation needs,” Mr Ku.

He pointed out that individual homeowners do not benefit from economies of scale in interior renovations, which are typically more expensive when tailored to unique tastes.

The veteran property analyst also highlighted practical concerns that could arise from the flexible layouts.

“Consider the scenario where different activities take place directly above or below each other in adjacent flats,” Mr Ku explained.

“This could lead to noise complaints and other nuisances. Furthermore, the varying positions of walls, air-conditioning ducts, and pipes could complicate maintenance and repairs, potentially leading to higher costs.”

Mr Ku also touched on the implications for future resale values. “When these flats eventually hit the resale market, there might be significant challenges in determining their value. The diversity in interior configurations and the quality of renovations could make comparative valuations more complex, particularly if the Ethnic Integration Policy imposes additional constraints.”

In addition to the new flat type, Mr Lee assured that HDB would keep BTO flats affordable and accessible, noting that over 80% of first-timer families have a mortgage servicing ratio of 25% or less.

As the pilot project nears its launch, it remains to be seen how these innovative flats will reshape the landscape of public housing in Singapore.