DROPPING OUT OF FIRST-TIME BUYERS FROM NEW-FLAT QUEUE

Dr Lee Tsao Yuan asked the Minister for National Development whether there has been an increase in first-time buyers of Housing and Development Board flats dropping out from the new-flat queue and, if so, what are the main reasons for this increase.

Mr Lim Hng Kiang: The number of first-timers who dropped out of the Registration for Flat System queue per month has increased from about 950 in 4Q97 to about 3,000 in 4Q98.

With the softening of resale HDB flat prices, about 45% of the first-timers who dropped out of the Registration for Flat System queue have switched to buy resale flats with CPF Housing Grant, instead of queuing up for new flats. Some first-timers could also have bought private residential properties. It is also likely that some rushed in and applied for the new flats when they saw the queue growing in 1996 and 1997. When they are now called up to select their flat, they do not require the flat so urgently and so prefer to drop out.