For sellers of resale flats in such locations, they may “face the pressures of not being able to command a higher price,” Prof Sing added.
“I think in a sense, this will help to stabilise the market, both in the resale market or for these Plus housing and also, on the other hand, to make sure that these people who are waiting for BTO are able to afford the housing prices at a reasonable price range.”
IMPACT ON THE RESALE MARKET
Some sellers, though, may leverage the new classification and term their own property as a Plus flat in order to charge a premium, said Ms Christine Sun, senior vice president of research and analytics at OrangeTee & Tie.
“However, I suspect that there will not be a major impact on the resale market or resale prices right now,” she added.
“Because these flats by virtue of their location – they could be like nearer town centres, schools, shopping malls or near MRT stations – they already command a higher price premium when compared to standard flats under the old model.”