Wednesday, June 6, 2012

Second-timers significantly improved on their chances for BTO says National Development Minister

The chances of second-time public housing buyers securing build-to-order (BTO) flats have improved significantly over the last seven months from application rates of 25.9 applicants per unit of November to 8.8 applicants per unit currently. Second-timers are those buyers who have already used public housing subsidized to buy a flat. In project releases, they are given a less percentage of flats compared to first time buyers, who are usually newly wed couples looking for a home to stay.

In non-mature estates, the application rate for second-timers is now 7.3, similar to 7.0 in March. These numbers are shared by National Development Minister Khaw Boon Wan yesterday.[1] A long lasting under-supply of HDB flats in the last decade, which was a reaction to an oversupply in late 90's and early 2000's has left many first timers with repeated failure to get a public housing flat and formed long waiting queues lasting sometimes for years. Since 2011, new National Development Minister Khaw Boon Wan has increased the release of new HDB flats from an average of 8,000 flats per year to 25,000 per year. In 2012, it is also planned to release 25,000 flats and HDB has already revealed that it has capacity to build up to 100,000 in the following years.

Compassvale Boardwalk, a popular BTO project - Source :
In his blog article named Passing The Test, Khaw Boon Wan wrote:
"In particular, first-timers continue to enjoy a high chance of securing their first flat. The overall first-timer application rate is 1.6. This is lower than the 2.2 in the March BTO, and similar to the 1.6 in January earlier this year, and November last year. In non-mature estates, the first-timer application rate is even lower, at 1.3 compared to the rate of 1.9 in March. 
As planned, more second-timers, too, will be able to select a flat. Their application rate in non-mature estates is at a single digit level of 7.3, which is similar to the rate of 7.0 in March. The overall second-timer application rate is also at a single digit level of 8.8, lower than the rate of 10.8 in March. 
If first-timer application rates hold steady at below 2, I will be able to help even more second-timers get their new flats.  The May BTO test results give us confidence that we are making steady progress on this journey.  This is much to be cheerful about."

[1] - BTO flats: ‘Better chances’ for second-time buyers

No comments:

Post a Comment