HDB PURCHASE FLATS (Three-offer policy)

The following Question stood on the Order Paper -

Mr Philip Tan Tee Yong: To ask the Minister for National Development whether applicants, who have deferred their purchase of Housing and Development Board flats because of the current economic downturn, will be penalized by the policy on cancellation of their application after three selections, and whether this will force them to take up unpopular flats in New Towns.

Dr Koh Lip Lin: Question No. 3, Sir.

Mr Teh Cheang Wan: Mr Speaker, Sir, the policy of allowing an applicant three offers of selection of flats before his application is cancelled is not implemented to force applicants to buy flats in unpopular areas. It is, in fact, similar to the policy of allowing an applicant three balloting chances when flats were allocated through the balloting system.

With the acceleration of the building programme, more flats are being completed for sale. Applicants on the waiting list have become more choosy. In spite of repeated invitations by the HDB to select their flats, some of the applicants have not responded, while others simply reject the flats after their selection. This has delayed the allocation of flats to applicants who are lower down on the waiting list. The HDB therefore has to bring back the 3-offer policy to speed up the allocation. Under this policy, applicants are still given ample opportunities to select a flat of their own choice. An invitation to select is deemed as an offer, only if the applicant's position in the selection queue is within 50% of the number of new flats available for selection. Invitations to select reserved flats are not counted as offers.

The HDB is aware that under the present economic conditions in Yishun New Town, there are some applicants who are not ready to purchase flats. Such applicants can request the HDB to defer allocation of their flats for one year.