SINGAPORE: The upcoming Build-to-Order (BTO) project at Pearl’s Hill could have a subsidy clawback of as high as 20 per cent, property analysts said on Wednesday (Mar 4).
That rate would surpass that of Berlayar Residence, which is located at the site of the former Keppel Club and has a subsidy clawback rate of 14 per cent – the highest to date.
A subsidy clawback is an amount that homeowners of Plus and Prime flats must pay back to the Housing and Development Board (HDB) when they sell their flats.
These flats come with higher subsidies to keep them affordable. They also come with tighter sale conditions, such as a 10-year minimum occupation period.
The project at Pearl’s Hill, announced by Minister for National Development Chee Hong Tat in parliament on Wednesday, is particularly notable as it marks the first BTO project in Pearl’s Hill in over four decades, said Mr Eugene Lim, key executive officer at ERA Singapore.
The project is also Singapore’s tallest HDB development at over 60 storeys, with around 1,700 two-room flexi, three-room and four-room flats, as well as over 140 public rental flats.
Analysts said that significant subsidies are likely to be required given its prime location.
The median resale price for a four-room flat in the central area was around S$1.35 million (US$1 million), based on the latest HDB data for the third quarter of 2025.
In view of high resale prices at the nearby Pinnacle@Duxton, substantial subsidies would need to be factored into the sale prices to ensure affordability for eligible buyers, Mr Lim said.
These subsidies would be needed, particularly when considering the income ceiling of S$14,000 for families, as well as the typical savings and liquidity levels of BTO applicants, he added.
Comparing the Pearl’s Hill project to Berlayar Residence, which offers a similar unit mix, prices for homes there could start from around S$218,000 to S$369,000 for a two-room flexi flat, S$420,000 to S$562,000 for a three-room flat and S$578,000 to S$788,000 for a four-room flat, Mr Lim said.
“Therefore, it is likely that the project will feature a new and higher subsidy recovery (clawback) rate. We estimate that this could fall within the range of 18 to 20 per cent,” he said.
Similarly, Huttons’ senior director of data analytics Lee Sze Teck estimated the figure could be as high as 20 per cent.
“Construction costs are likely to be much higher due to the need for deeper foundations. HDB will likely have to provide more subsidies to keep prices affordable,” he noted.
Using Berlayar Residence as a guide, he estimates that the prices of four-room flats may start from S$600,000.
“Compared to the average resale prices of more than S$1.4 million for a four-room in Pinnacle@Duxton, the BTOs in Pearl’s Hill are likely to be much more affordable, improving access for Singaporeans to live in the highly coveted city location,” he said.
Analysts agreed that the Pearl’s Hill project, which will be launched within the next few years, is in a choice location and would likely be a Prime project.
Ms Christine Sun, chief researcher and strategist at Realion Group, noted that the current shortage of new flats in the Outram area has resulted in resale flat prices at Pinnacle@Duxton rising continuously.
Increasing housing supply will help to slow down the rate of price growth for HDB resale flats in the area, making housing more affordable for those who wish to live closer to the downtown area, she said.
“Eligible buyers will likely be attracted to these new BTO flats rather than resale options, as these flats are highly subsidised and well located with easy access to an MRT station and upcoming shopping mall,” she added.
Hutton’s Mr Lee noted that units in the BTO may have commanding views towards Orchard and sea views towards Sentosa.
The Urban Redevelopment Authority said in 2023 that residents in the area could look forward to a variety of amenities within a proposed mixed-use development to be integrated with Outram Park MRT station.
The mixed-use development will provide more amenities for residents, Mr Lee said.
Mr Lim agreed that the location is further enhanced by Outram Park’s MRT connectivity, which spans three lines – the Thomson-East Coast Line, East-West Line and North East Line.
This provides direct access to key commercial nodes such as the central business district, Buona Vista and Orchard, Mr Lim said.
Ms Sun said future residents can also look forward to a wide range of amenities within the surrounding neighbourhood to meet their daily needs.
“In addition, the nearby mature estates of Chinatown and Tanjong Pagar offer an extensive selection of retail, dining and lifestyle conveniences,” she said.
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That rate would surpass that of Berlayar Residence, which is located at the site of the former Keppel Club and has a subsidy clawback rate of 14 per cent – the highest to date.
A subsidy clawback is an amount that homeowners of Plus and Prime flats must pay back to the Housing and Development Board (HDB) when they sell their flats.
These flats come with higher subsidies to keep them affordable. They also come with tighter sale conditions, such as a 10-year minimum occupation period.
The project at Pearl’s Hill, announced by Minister for National Development Chee Hong Tat in parliament on Wednesday, is particularly notable as it marks the first BTO project in Pearl’s Hill in over four decades, said Mr Eugene Lim, key executive officer at ERA Singapore.
The project is also Singapore’s tallest HDB development at over 60 storeys, with around 1,700 two-room flexi, three-room and four-room flats, as well as over 140 public rental flats.
Analysts said that significant subsidies are likely to be required given its prime location.
The median resale price for a four-room flat in the central area was around S$1.35 million (US$1 million), based on the latest HDB data for the third quarter of 2025.
In view of high resale prices at the nearby Pinnacle@Duxton, substantial subsidies would need to be factored into the sale prices to ensure affordability for eligible buyers, Mr Lim said.
These subsidies would be needed, particularly when considering the income ceiling of S$14,000 for families, as well as the typical savings and liquidity levels of BTO applicants, he added.
Comparing the Pearl’s Hill project to Berlayar Residence, which offers a similar unit mix, prices for homes there could start from around S$218,000 to S$369,000 for a two-room flexi flat, S$420,000 to S$562,000 for a three-room flat and S$578,000 to S$788,000 for a four-room flat, Mr Lim said.
“Therefore, it is likely that the project will feature a new and higher subsidy recovery (clawback) rate. We estimate that this could fall within the range of 18 to 20 per cent,” he said.
Similarly, Huttons’ senior director of data analytics Lee Sze Teck estimated the figure could be as high as 20 per cent.
“Construction costs are likely to be much higher due to the need for deeper foundations. HDB will likely have to provide more subsidies to keep prices affordable,” he noted.
Using Berlayar Residence as a guide, he estimates that the prices of four-room flats may start from S$600,000.
“Compared to the average resale prices of more than S$1.4 million for a four-room in Pinnacle@Duxton, the BTOs in Pearl’s Hill are likely to be much more affordable, improving access for Singaporeans to live in the highly coveted city location,” he said.
PRIME LOCATION
Analysts agreed that the Pearl’s Hill project, which will be launched within the next few years, is in a choice location and would likely be a Prime project.
Ms Christine Sun, chief researcher and strategist at Realion Group, noted that the current shortage of new flats in the Outram area has resulted in resale flat prices at Pinnacle@Duxton rising continuously.
Increasing housing supply will help to slow down the rate of price growth for HDB resale flats in the area, making housing more affordable for those who wish to live closer to the downtown area, she said.
“Eligible buyers will likely be attracted to these new BTO flats rather than resale options, as these flats are highly subsidised and well located with easy access to an MRT station and upcoming shopping mall,” she added.
Hutton’s Mr Lee noted that units in the BTO may have commanding views towards Orchard and sea views towards Sentosa.
The Urban Redevelopment Authority said in 2023 that residents in the area could look forward to a variety of amenities within a proposed mixed-use development to be integrated with Outram Park MRT station.
The mixed-use development will provide more amenities for residents, Mr Lee said.
Mr Lim agreed that the location is further enhanced by Outram Park’s MRT connectivity, which spans three lines – the Thomson-East Coast Line, East-West Line and North East Line.
This provides direct access to key commercial nodes such as the central business district, Buona Vista and Orchard, Mr Lim said.
Ms Sun said future residents can also look forward to a wide range of amenities within the surrounding neighbourhood to meet their daily needs.
“In addition, the nearby mature estates of Chinatown and Tanjong Pagar offer an extensive selection of retail, dining and lifestyle conveniences,” she said.
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