Not just 'Build to Order' but 'Build to Minister's Order': Chee Hong Tat on boosting BTO supply if demand stays strong

The Housing Board can further increase its Build-To-Order (BTO) flat supply if demand remains strong, National Development Minister Chee Hong Tat has said on Thursday (Jan 22).

HDB had announced their target of launching 55,000 flats from 2025 to 2027, which is 10 per cent more than previously committed before Chee took office last May.

Speaking at the Building and Construction Authority-Redas (Real Estate Developers’ Association of Singapore) seminar held at Raffles City Convention Centre, Chee reiterated comments that he made last month that HDB has been asked to go beyond this figure to meet demand.

“So this is not just BTO, but ‘Build to Minister’s Order’,” he quipped.

HDB resale market showing signs of moderation

He added that the sustained ramp up in BTO supply in recent years has helped to improve the housing situation, as application rates come down and more first-time buyers are able to successfully book their flats within a few tries.

The median application rates for first-timer families applying for 3-room and larger BTO flats, for example, have dropped from nearly 7 times in 2020 to between 1.1 and 1.9 times in 2025.

"We are also starting to see some signs of stability and moderation in the HDB resale market, as homebuyers shift their demand from the resale market to the BTO market," he said.

He pointed out that in 4Q 2025, HDB flat resale prices remained stable compared to the previous quarter - the first such occurrence since 1Q 2020.

"We expect the moderation in price growth to continue this year, supported by the robust BTO supply, and a larger number of BTO flats reaching the end of their Minimum Occupation Period, or MOP in short, and entering the resale market," he added.

Construction demand forecast at $47b to $53b

In the built-environment sector, construction contracts in 2026 are expected to reach between $47 billion and $53 billion.

Construction demand will be supported by projects such as Changi Airport Terminal 5, expansion of Marina Bay Sands, the new hospital in Tengah and Downtown Line 2’s extension, said the Building and Construction Authority (BCA) in a press release on Thursday.

Preliminary actual construction demand as of end-2025 was $50.5 billion, which BCA attributed to institutional and housing projects.

Over the medium term, BCA said that total construction demand from 2027 to 2030 will reach an average of $39 billion and $46 billion each year.

Chee in his speech said that while this presents opportunities for the built-environment sector, he warned against complacency.

”If we continue business-as-usual, we will soon run into resource constraints, which will adversely impact our ability to seize new growth opportunities,” he added.

Chee also called on the built-environment industry to work with the Government on their efforts to save time, costs and manpower.

This is through initiatives such as the Productivity Solutions Grant for local small- and medium-sized enterprises (SMEs) in the sector in which Chee announced that its new tranche will begin from April 1.

The grant, which was announced in the Ministry of National Development’s Budget in 2023, co-funds up to 50 per cent of the costs of SMEs adopting pre-approved digital solutions, which include construction robots and ways to streamline work processes.

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chingshijie@asiaone.com