HDB Refines Its Flat Application Process To Address Repeated Non-Selection Of New HDB Flats
 
Date issued : 22 May 2008


           HDB has refined the application process for its Build-to-Order (BTO) and Balloting Exercise (BE) modes of sale to address recent increases in non-selection of new HDB flats. The changes will take effect from the May 2008 BTO exercise.

Background

2         HDB has seen significant over-subscription for new flats in recent sale exercises. This has given the impression of excess demand in the HDB new flats market, giving rise to concerns that there may not be enough new flats to meet public housing needs. However, the reality is that some applicants do not book a flat when their turn was due, and many flats were left unselected at the end of the exercises.

3         In the last 4 BTO exercises where selection has been completed, about 50% - 70% of the applicants did not select a flat despite the high number of applications received. At Coral Spring for example, over 200 units or 30% of the 4-room flats were not selected after all the applicants had been called up for selection. The number of flats left unselected in these 4 BTO exercises are given in Table 1, Annex A.

4         Among the invited applicants who did not select a flat in recent BTO exercises, up to 23% of them had given up their chances to select twice. Up to another 12% of the applicants had rejected their chances to select more than twice. (See Table 2, Annex A). The figures indicate that a significant number of applicants tried repeatedly but did not select when given a chance at successive sales exercises.

Refined Application Process

5         To manage this growing trend of repeated non-selection, HDB will introduce the following revisions to the application process:

(a)         First-timer applicants who reject 2 chances to select a flat will have their First-timer priorities removed for a 1-year period in HDB's sales exercises. This means that they will be treated like Second-timer applicants, and will no longer be able to ballot for the 90% of publicly available flats which HDB safeguards for First-timers. Details of the priorities they would not be able to enjoy in HDB sale exercises within that 1-year period are at Annex B.

(b)         Additional chances for repeatedly unsuccessful First-timers, i.e. those not invited to select a flat, will be limited to only BTO exercises in non-mature estates. No additional chance will be accorded if they participate in the BE or the Quarterly / Half-Yearly Sales Exercise, where the supply of flats is limited.

(c)         The additional chances will be accorded to First-timer applicants who had been unsuccessful twice (i.e. starting from the third try), instead of today’s practice where additional chances are only given starting from the fifth try. The number of chances for each scenario is illustrated at Annex C.

6         The above measures will encourage applicants to consider their options carefully before participating in a HDB sale exercise. They will also help to minimize non-selection of HDB flats by applicants who repeatedly participate in sales exercises and thus divert HDB’s time and resources from those with urgent housing needs. A comparison of the previous and refined application procedures for BTO Exercise and BE is attached at Annex D for reference.

Enquiries

7         For enquiries, the public can:

- e-mail hdbsales@hdb.gov.sg;
- call the Sales/Resale Customer Service Line at 1800-866 3066 from Monday to Friday : 8 am to 5 pm; or
- visit the HDB Sales Office to speak with our Customer Service Officers during office hours from Monday to Friday : 8 am to 5 pm and Saturday: 8 am to 1 pm.


Annex A – Statistics for Reference


TABLE 1: PERCENTAGE OF APPLICANTS INVITED WHO DID NOT BOOK A FLAT / BALANCE UNITS


BTO Project
(a)
Flat Type
(b)
Number of
Units Offered*
(c)
Number of Applications
Received
(d)
Number of invited applicants who did not book any flat
(e)
Number of invited applicants who did not book over applications received
(f)= (e) / (d)
Number of
Balance Units
(g)
Sep 2007 BTO
(Coral Spring)
4-room
698
1,284
797
62%
211
Oct 2007 BTO
(Punggol Lodge)
4-room
464
1,484
1,069
72%
49
Nov 2007 BTO
(Segar Meadows)
3-room
90
114
61
54%
37
Nov 2007 BTO
(Compassvale Beacon)
3-room
150
148
78
53%
80
4-room
540
1,221
775
63%
94
Note:
i) Column (g) shows the balance flats available for selection to all ethnic groups after all applicants have been invited to select a flat.


TABLE 2: PERCENTAGE OF APPLICANTS WHO DID NOT BOOK A FLAT BASED ON NUMBER OF TIMES OFFERED

BTO Project
Flat Type
No. of invited applicants who did not book a flat
1st offer
2nd offer
3rd or subsequent offer
Total
Sep 2007 BTO
(Coral Spring)
4-room
581
(73%)
163
(20%)
53
(7%)
797
(100%)
Oct 2007 BTO
(Punggol Lodge)
4-room
717
(67%)
246
(23%)
106
(10%)
1,069
(100%)
Nov 2007 BTO
(Segar Meadows)
3-room
60
(98%)
1
(2%)
0
(0%)
61
(100%)
Nov 2007 BTO
(Compassvale Beacon)
3-room
63
(81%)
13
(17%)
2
(2%)
78
(100%)
4-room
522
(67%)
162
(21%)
91
(12%)
775
(100%)


Annex B – List of First-Timer Priorities Removed


With effect from the May 08 BTO exercise, First-Timer applicants who reject 2 chances to select a flat will no longer be given the First-Timer priorities for a period of one year. If they apply for a flat in any HDB sales exercise within that one-year period they would no longer enjoy the following priorities:

a)         2 chances in the ballot for a First-Timer applicant;

b)         2 more chances (i.e. a total of 4) if the First-Timer applicant applies under the Married Child Priority Scheme (MCPS);

c)         Additional chances for subsequent tries for First-Timer applicants who are not invited to select a flat in more than 2 attempts; and

d)         Balloting in the 90% of flat supply for public applicants set aside for First-Timer applicants, i.e. they can only ballot in the 10% allocated for second-timers.


Annex C – Improved Priority for First-Timers: Number of Chances for Each Scenario

No. of past
unsuccessful attempts
Additional Chances to be assigned
Chances for

First-timer
Chances for First-timer who qualifies under MCPS
0 to 1
0
2
4
2
1
2+1
4+1
3
2
2+2
4+2
4
3
2+3
4+3


Annex D – Existing and Refined Application Process


Existing proceduresRefined procedures
(From May 08 BTO Exercise)
Eligibility to submit flat application
Can submit another application regardless of the number of previous attempts and continue to enjoy First-Timer priorities.
Eligibility to submit flat application
First-Timer applicants who reject 2 chances to select a flat will have their First-Timer priorities removed when they participate in HDB's sales exercises for period of 1 year. They can still apply, but will be treated as a second-timer.
Priority for First-timers
Additional chances given to applicants who had been repeatedly unsuccessful for 4 or more attempts in BTO/BE.
Priority for First-timers
Additional chances will be accorded to First-Timer applicants who had been unsuccessful twice in BTO. (i.e. starting from the third try). The additional chances are limited only to BTO exercises in non-mature estates.