Reasons for Successful Applicants Not Taking up HDB BTO Flats
Ministry of National DevelopmentSpeakers
Summary
This question concerns Ms Mariam Jaafar’s inquiry on why successful BTO applicants decline to select units and how reasons differ between estate types. Minister for National Development Desmond Lee noted that about 40% of successful applicants do not select flats, with reasons remaining consistent across mature and non-mature estates. Common justifications include the unavailability of preferred units, opting for resale flats, or wanting to apply for future sales exercises. To prioritize those with urgent needs, applicants accumulating two non-selection counts face a one-year penalty, such as being moved to the second-timer category or barred from applications. Minister for National Development Desmond Lee highlighted that HDB may waive these counts if there were limited units available for selection.
Transcript
18 Ms Mariam Jaafar asked the Minister for National Development of those who are successful in their ballot for an HDB BTO flat but choose not to select a unit subsequently, how do the reasons provided differ between applicants of flats in mature and non-mature estates respectively.
Mr Desmond Lee: From HDB's past sales launches, about four in 10 applicants who were successful in their ballot for a Build-To-Order (BTO) flat chose not to select a flat. The reasons for not selecting a flat are similar across applicants of flats in both mature and non-mature estates. Common reasons cited by such applicants were their preferred units not being available, wanting to apply for flats in other sales exercises or having decided to purchase a resale flat instead.
While some of these applicants may have genuine reasons for not selecting a flat, they do crowd out others with more pressing housing needs. As such, HDB encourages all applicants to book a flat when they are invited to do so. Those who choose not to do so will be issued a non-selection count. First-timer families who accumulate two non-selection counts will have their subsequent flat applications moved to the second-timer category for a year. Second-timer families who accumulate two non-selection counts will not be able to participate in subsequent sales exercises for a year. This is to be fair to those who have more pressing housing needs. Nevertheless, HDB may exercise flexibility on a case-by-case basis to waive the non-selection count if there was a limited number of flats available for selection.