BUILD-TO-ORDER FLATS

BUILD-TO-ORDER FLATS

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(Unsuccessful first-timers): **

18.

Er Lee Bee Wah asked the Minister for National Development in view of the surge in requests for Build-to-Order (BTO) flats (a) how many first-time flat buyers have applied for BTO flats at least three times but were unsuccessful; and (b) what are the reasons for their failure to get a flat.

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Mr Mah Bow Tan: In response to strong demand, the Housing and Development Board (HDB) increased the frequency of its BTO launches to once every month since October 2009. As a result, many applicants have been applying for multiple BTO exercises, and those who were unsuccessful have also increased. Nonetheless, for the BTO exercises in non-mature estates completed in the last one year, more than nine in 10 first-timers had a chance to select a flat within three tries.

Currently, there are about 1,300 first-timers who were not able to select a flat in non-mature estates after three attempts. They would be given two additional chances on their fourth attempt on top of their original two or four chances (if they are applying to live near or with their parents). With application rates for BTO exercises moderating from about six times earlier this year to slightly over two times in recent BTO exercises in August and September, first-timers will have higher chance to select a flat in their next application. If they are still unable to select a flat, HDB will offer them help if they have urgent housing needs. I have also asked HDB to look into further increasing the chances for those with multiple unsuccessful applications, and HDB will announce the details when they are ready.

HDB will spare no effort in meeting urgent housing needs. HDB has increased its supply of BTO flats to cater to the increased demand. This year, HDB has offered 12,600 BTO flats from January to September and 1,600 flats under the Sale of Balance Flat (SBF) Exercise in August. HDB will offer another 3,400 BTO flats in the last quarter of 2010 to bring the total new flat supply for 2010 to 17,600. HDB will also offer up to 22,000 new flats next year if demand is sustained. This will be further supplemented by the on-coming supply of Executive Condominiums and flats under the Design, Build and Sell Scheme (DBSS), to provide more choices for the higher-income buyers. HDB will continue to monitor the market demand and adjust its supply accordingly.

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