IMPACT OF APPLICANTS REJECTING CHANCE TO CHOOSE BTO FLATS

Whilst most of us know that there is currently a strong demand for BTO flats, what is not as well known is that 4 in 10 BTO flat applicants do not choose their flats when invited to do so. This is a high number. I was concerned about the impact of such high rejection rates on other applicants who have genuine housing needs as well as HDB’s operations. I therefore asked Minister Desmond Lee what are the contributing factors to this high rejection rate, what impact does this have on HDB operations and what steps HDB will take to address this problem. My PQ and his answer may be accessed below.

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Mr Murali Pillai asked the Minister for National Development (a) what are the contributing factors leading to four in 10 HDB BTO flat applicants not choosing their flats when invited to do so; (b) what operational impact does such a rejection rate have on HDB; and © what steps it intends to take in this regard.

Mr Desmond Lee: From HDB’s past sales launches, about four in ten applicants who were invited to book a flat under a Build-To-Order (BTO) exercise did not do so. Such applicants cited reasons such as 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 non-selection, they do crowd out others with more pressing housing needs. HDB also has to expend resources to process their flat applications, and to prepare the non-selected flats for future sales exercises.

HDB therefore encourages all flat applicants to select a flat when they have the chance to do so. Those who choose not to book a flat 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. Additionally, first-timer families who have been unsuccessful in two or more attempts for a BTO flat in the non-mature estates (NMEs) receive an additional ballot chance for each subsequent NME BTO application. Virtually all first-timer families who apply for NME BTO flats are successful within their first three tries. However, the count of unsuccessful NME BTO applications will be reset to zero if a first-timer family chooses not to book a flat when offered a chance to do so.