Reasons for HDB BTO Applicants Not Booking A Flat When Invited to Do So
Ministry of National DevelopmentSpeakers
Summary
This question concerns the high non-selection rate of HDB BTO applicants and the measures implemented to prioritize home buyers with more urgent housing needs. Mr Yip Hon Weng inquired about common reasons for not booking flats and how the Ministry of National Development determines the legitimacy of these reasons. Minister of State Assoc Prof Dr Muhammad Faishal Ibrahim explained that common reasons include unit preferences or switching to the resale market rather than frivolous intent. He highlighted that since August 2023, non-selection counts lead to reduced priority for first-timers and a one-year suspension for second-timers, except when unit choices are limited. Minister of State Assoc Prof Dr Muhammad Faishal Ibrahim added that HDB exercises flexibility for extenuating circumstances on a case-by-case basis, provided applicants submit documentary evidence to substantiate their appeals.
Transcript
15 Mr Yip Hon Weng asked the Minister for National Development (a) what are the reasons why 40% of HDB BTO applicants do not book a flat when invited to do so at selection exercises; (b) how does the Ministry determine whether the reasons provided for failing to book are legitimate; (c) whether applicants will be required to submit proof under the tightened BTO selection rules; and (d) what measures will be taken to exclude applicants who participate in BTO selection exercises for frivolous reasons.
The Minister of State for National Development (Assoc Prof Dr Muhammad Faishal Ibrahim) (for the Minister for National Development): Mr Speaker, applicants are not required to provide or justify their reasons to the Housing and Development Board (HDB) for choosing not to book a flat. The most common reasons shared by applicants who did not book a flat when invited to do so, are as follows: firstly, their preferred units have been taken up; secondly, they have since decided to buy a resale flat; or thirdly, they have changed their minds and want to apply for flats in other sales exercises instead.
While there are different reasons for non-selection, such applicants do crowd out other home buyers who may have more urgent housing needs. Hence, we have the rules for non-selection. From the August 2023 Build-To-Order (BTO) exercise, first-timers (FTs) with one non-selection count will be considered as second-timers (STs) for a year in the computer ballot; while STs with one non-selection count will not be allowed to participate in sales exercises for a year.
To be fair to applicants who are left with limited choices, HDB will not issue a non-selection count to applicants with 10 or fewer BTO flats, or five or fewer Sale of Balance flats, to choose from when their turn is due. This is regardless of the applicants' reasons for non-selection.
Where there are extenuating circumstances, HDB may exercise flexibility to waive the non-selection count. Each appeal is evaluated on its own merits and appellants will need to provide documentary evidence to HDB to substantiate their case where necessary.
Mr Speaker: Mr Yip.
Mr Yip Hon Weng (Yio Chu Kang): I thank the Minister of State for his reply. Just one short supplementary question. For first-time BTO applicants who do not choose a flat for valid reasons, like out of budget, will exceptions be made for them to retain their priority status?
Assoc Prof Dr Muhammad Faishal Ibrahim: Sir, I thank the Member for the supplementary question. As I shared earlier, when there are extenuating circumstances, HDB may exercise flexibility on a case-by-case basis. So, I will urge the applicant with the circumstance shared by the Member earlier, to appeal with the documentary proof or evidence and we will take a look at it.