Improvement in Wait Times Given Increase in Allocation Quota for HDB BTO First‐timer Applicants
Ministry of National DevelopmentSpeakers
Summary
This question concerns MP Derrick Goh’s inquiry regarding the median wait time for first-timer Build-To-Order (BTO) applicants in non-mature estates and the impact of the August 2022 quota increases. Minister for National Development Desmond Lee responded that tracking median wait times is impractical due to high booking decline rates, but noted that nearly all first-timer families secure flats within three attempts. He highlighted that allocation quotas for non-mature estates were raised to at least 85% for 3-room flats and 95% for 4-room and larger flats. To address demand, the Housing and Development Board is launching 23,000 flats annually in 2022 and 2023, a 35% increase from 2021 levels. The Government remains prepared to launch up to 100,000 flats in total between 2021 and 2025 to ensure greater housing certainty for first-time applicants.
Transcript
38 Mr Derrick Goh asked the Minister for National Development with regard to first‐timer applicants of HDB BTO flats in non‐mature estates (a) what is the current median wait time from the date of application to choosing a unit for such applicants; and (b) what is the expected improvement in median wait time in view of HDB’s announcement in August 2022 regarding the increase in allocation quota for first‐timer applicants.
Mr Desmond Lee: First-timer applicants may not apply in consecutive Build-To-Order (BTO) exercises and may also apply for flats in both mature estates (MEs) and non-mature estates (NMEs) in different BTO exercises. Some applicants may also be given a queue number and invited to select a flat, but they may decline to do so. From past sale launches, about 40% of the invited flat applicants did not proceed to book a flat. As such, it is not meaningful to track the median wait time between the first flat application and when the applicant books a flat in an NME.
On average, over the past few years, almost 90% of first-timer families applying to NMEs managed to secure their BTO flats within two attempts. First-timer families who have been unsuccessful in two or more NME BTO attempts are given an additional ballot chance in their subsequent application for a BTO flat in NMEs. As a result of this policy, virtually all first-timer families have been successful within their first three tries for an NME BTO flat over the past few years.
In view of the strong housing demand from first-timer applicants, HDB has recently adjusted the first-timer NME BTO allocation quotas with effect from the August 2022 BTO exercise to give first-timer applicants greater certainty in securing an NME BTO flat. At least 85% of the 3-room BTO flat supply and 95% of the 4-room and bigger BTO flat supply in the NMEs are now set aside for first-timer families. This is up from the previous levels of at least 70% and 85% respectively. As the adjustments to the first-timer NME BTO quotas are recent, it would be premature to comment on the extent to which the adjustments will improve the success rate of first-timers.
To meet the strong housing demand, HDB has also been ramping up the supply of BTO flats and will launch up to 23,000 flats per year in 2022 and 2023. This is a significant increase of 35% from the 17,000 flats launched in 2021. We are also prepared to launch up to 100,000 flats in total from 2021 to 2025, if needed.