Success Rates for First-timer and Second-timer HDB BTO Applicants
Ministry of National DevelopmentSpeakers
Summary
This question concerns Mr Alex Yam's inquiry regarding BTO success rates between 2013 and 2015 and the sustainability of current flat building rates. Minister Lawrence Wong reported that 90% of first-timer and 70% of second-timer families were successful in non-mature estates, while unsuccessful applications mainly involved high-demand mature estates and balance units. After a 2011-2013 ramp-up, HDB tapered supply to 15,100 units in 2015 as demand stabilized, maintaining a steady first-timer application rate of 1.6 times. For 2016, 18,000 flats were planned to accommodate demand from policy changes, including higher income ceilings and enhanced CPF housing grants. The government continues to monitor market conditions to adjust supply and ensure long-term sustainability for all home applicants.
Transcript
13 Mr Alex Yam asked the Minister for National Development (a) what have been the success rates for first-timer and second-timer HDB BTO applicants from 2013-2015; (b) whether the current building rate for new flats is sustainable in light of the application rates; and (c) what are some of the main reasons for multiple unsuccessful applications.
The Minister for National Development (Mr Lawrence Wong): Mdm Speaker, between 2011 and 2013, HDB ramped up the Build-to-Order (BTO) flat supply and launched about 26,000 flats per year to address the temporary demand-supply imbalance. This helped to clear the demand backlog for first-timers. As a result, from 2013 to 2015, about nine in 10 first-timer families and seven in 10 second-timer families were successful in their applications for BTO flats in the non-mature estates.
Most flat applicants with multiple unsuccessful applications had applied for flats which are limited in supply but in high demand and these are largely BTO flats in the mature estates as well as balance flats.
With the demand-supply balance restored, HDB has been tapering the BTO supply – this came down from 22,400 flats in 2014, to 15,100 flats in 2015. Despite the tapering of flat supply, the application rate of first-timer families applying for 3-room or larger BTO flats in the non-mature estates has remained stable at about 1.6 times last year. And that is comparable to the rate in 2014. This means that most of the families would have been able to book a flat on their first attempt.
HDB plans to offer about 18,000 flats this year in 2016 to meet new demand from recent policy changes, which include the higher income ceilings and enhanced Special CPF Housing Grant. We will continue to monitor the market closely and adjust the supply when necessary, in line with our broader plan to keep supply at a sustainable level over the long term.