SINGAPORE: Applicants who fail to select a Housing Board Build-to-Order (BTO) flat despite being successful at the balloting stage will face tighter restrictions from August this year, announced Minister for National Development Desmond Lee on Thursday (Mar 2).
This is to ensure more efficient allocation so that those who need a home can secure their flats more quickly, the Ministry of National Development (MND) and the Housing and Development Board (HDB) said in a press release.
About 40 per cent of BTO applicants do not book a flat when invited to do so. They either do not turn up or decline to book a flat at their selection appointments, said authorities.
“There is probably a range of reasons. For some, the remaining flats may be out of their budget. For others, they might be considering other housing options, or prefer flats with specific attributes,” said Mr Lee in Parliament at his ministry’s Committee of Supply debate.
“Understandably, some would rather give up the opportunity to select a flat now, and wait longer for a better flat. But whatever the reason, such applicants do crowd out other home buyers who may have more pressing needs.”
Currently, such applicants are penalised if they accumulate two non-selection counts, and are considered second-timers for a year during the balloting exercise.
But from the August 2023 BTO exercise, first-timers who fail to choose a flat once will be deemed second-timers for a year in the computer ballot. Second-timers who accumulate one non-selection count, down from the current two counts, will have to wait one year before they can apply for a flat again.
First-time family applicants have a better chance at balloting as they get two ballot chances while second-time family applicants are given one. Also, up to 95 per cent of HDB’s BTO or Sales of Balance Flat (SBF) supply is set aside for first-timer families.
The contrast is clearly seen in application rates at each BTO launch where the number of second-timers vying for each flat is far higher. For example, in the November 2022 BTO exercise, there were 1.9 first-time applicants versus 16.2 second-time applicants for each four-room BTO flat at housing estates in Tengah.