Proposal to Allocate More Flats to be Sold under Sale of Balance Flats Exercise for Residents Who Cannot Afford Resale Flats
Ministry of National DevelopmentSpeakers
Summary
This question concerns whether HDB will allocate more completed units to the Sale of Balance Flats (SBF) exercise for residents needing affordable, urgent housing. Minister for National Development Desmond Lee clarified that SBF supply is not predetermined but relies on unsold Build-To-Order (BTO) units, repurchased flats, and ex-rental units. He noted that two-thirds of SBF flats are still under construction and that HDB is instead focused on reducing standard BTO waiting times to between three and four years. To assist home buyers, HDB will launch about 2,800 shorter waiting time (SWT) flats this year, meeting its annual target of 2,000 to 3,000 units one year ahead of schedule. Minister for National Development Desmond Lee concluded that HDB will continue offering these SWT flats to help residents move into their new homes more quickly.
Transcript
47 Mr Lim Biow Chuan asked the Minister for National Development whether HDB will set aside more completed flats to be sold under the Sale of Balance Flats exercise to cater to residents who need flats urgently but cannot afford the resale prices.
Mr Desmond Lee: First, we would like to clarify that the Housing and Development Board (HDB) does not “set aside” flats to be sold under Sale of Balance Flats (SBF) exercises. The Build-To-Order (BTO) framework allows buyers to book a flat in advance of completion, giving assurance that they have secured a flat. However, there are instances where not all the units in a proposed development are taken up. These balance flats are then offered for sale under the SBF exercises. The SBF flat supply is, therefore, not a predetermined number. It depends on the number of unsold units from previous BTO exercises and some repurchased or ex-rental flats where available. Given that the total yearly supply of SBF flats is mainly a function of the BTO flats which are not taken up, it should be expected that the number of SBF flats is both variable and much lower than the number of BTO flats.
Also, the majority of flats offered under the SBF exercises are still under construction, not completed units, and hence successful SBF applicants generally still have to wait a period of time before getting them. Since 2021, two in three SBF units were under construction when offered under an SBF exercise.
To help home buyers, especially first-timers, move into their new homes more quickly, HDB has been working on various measures to shorten waiting times without compromising quality and safety. As a result, HDB has brought down BTO waiting time to the pre-pandemic level of three to four years, compared to the pandemic peak of four to five years. In 2023, we committed to launch 2,000 to 3,000 shorter waiting time (SWT) flats per year by 2025. These are flats with waiting time of less than three years. Working closely with agencies and our construction partners, HDB will meet this target one year ahead of schedule. We will offer about 2,800 SWT flats this year. Going forward, HDB targets to launch about 2,000 to 3,000 SWT flats per year.