Help for First-time Buyers who have Failed Twice at Securing a BTO Flat
Ministry of National DevelopmentSpeakers
Summary
This question concerns the support for first-timer applicants failing to secure Build-To-Order (BTO) flats and the calibration of public housing supply. Mr Gan Thiam Poh inquired about assistance for those unsuccessful after more than two attempts and the number of appeals HDB received regarding this issue. Minister for National Development Desmond Lee responded that first-timer families are prioritized with more flat allocations and additional ballot chances, resulting in most being successful within three tries in non-mature estates. He reported that HDB received approximately 230 appeals in 2020 from such applicants, noting that many had limited their choices to mature estates or did not book flats when invited. The Minister stated that HDB monitors demographic and market trends to calibrate supply and suggested that applicants consider resale flats, which are eligible for up to $160,000 in grants.
Transcript
99 Mr Gan Thiam Poh asked the Minister for National Development (a) what can HDB do to help Singaporeans especially first-timer flat applicants to get their BTO flats especially for those who have applied for BTO and Balance of Sale flats and have failed more than twice; (b) how many appeals has HDB received from applicants who have failed more than twice in their applications; and (c) whether HDB can increase the supply of BTOs flats to further reduce the application rate for first-timers to less than 1.3 for non-mature estates.
Mr Desmond Lee: Helping families to secure their first home is a key priority for MND and HDB. As such, we have put in place various measures to improve the chances of first-timer families in their flat applications. Besides allocating more flats to first-timer families, HDB also gives them two ballot chances instead of one. First-timer families who have been unsuccessful in two attempts for BTO flats in the non-mature estates are given an additional ballot chance at their subsequent application for a BTO flat in the non-mature estates. As a result, virtually all first-timer families would be successful within their first three tries for a BTO flat in the non-mature estates.
In 2020, HDB received about 230 appeals from first-timer families with more than two unsuccessful attempts in BTO or Sale of Balance Flats (SBF) exercises. Many had applied for a flat in the mature estates, where flats are more limited in supply. Some had also not proceeded to book a flat, despite having the chance to do so. We encourage flat applicants to consider flats in the non-mature estates where application rates are generally lower and to book a flat when they are invited to do so.
First-timer families who have more specific preferences for location or flat attributes can also consider buying a resale flat on the open market and can receive up to $160,000 in housing grants.
In planning the BTO flat supply, HDB adopts a comprehensive approach, taking into consideration factors such as the prevailing economic and housing market situations, as well as long-term demographic and population trends. HDB will continue to monitor the housing market closely and calibrate the supply of public housing to ensure that the supply remains responsive to the housing needs of the population.