Deferment of Collection of Keys for BTO Flats
Ministry of National DevelopmentSpeakers
Summary
This question concerns the deferment of key collection for Build-To-Order (BTO) flats and the assistance provided to affected buyers. Ms Sylvia Lim inquired about the number of Singaporeans seeking deferments and the proportion struggling to sell their existing flats. Minister Lawrence Wong stated that in 2015, approximately 300 buyers requested deferment, with two-thirds citing unsold existing flats, representing less than 1% of all buyers. Minister Lawrence Wong highlighted that HDB offers flexibility on collection timelines and provides completion updates, as buyers generally have six months post-collection to sell. For financial support, HDB may extend temporary loans that are redeemed from the eventual sale proceeds of the existing property.
Transcript
11 Ms Sylvia Lim asked the Minister for National Development (a) in the last 12 months, how many Singaporeans who have purchased BTO flats have requested for a deferment of collection of keys; (b) what proportion of such requests have been due to inability to sell their existing flats; and (c) how will the Government assist residents in such situations.
Mr Lawrence Wong: In 2015, about 300 flat buyers requested to defer collection of keys when their Build-To-Order (BTO) flats were ready. Of these, about two-thirds or less than 200 flat buyers did so because they were unable to sell their existing flat. This was less than 1% of the 22,000 buyers who had collected their keys in the same year.
BTO flat buyers generally have up to six months after collecting the keys to their BTO flat to sell their existing flats. The Housing and Development Board (HDB) may exercise flexibility and grant an extension of time for buyers to collect keys to the BTO flat. However, HDB is not able to hold on to the completed flat indefinitely as there are holding costs involved.
Buyers who intend to use the sales proceeds from their existing flat to finance the purchase of their BTO flat should aim to finalise the sale before the estimated completion date of their new flat. HDB helps by keeping buyers updated on the likely completion dates of their new flats as the date draws nearer. For those who have submitted a resale application to sell their existing flat and need help with their cashflow situation, HDB will also be prepared to extend a temporary loan, which would be fully redeemed from the sales proceeds of the existing flat when it is eventually sold.