HDB is stepping up its supply of new flats to meet increased demand. With the good response to recent Build-To-Order (BTO) launches, HDB will be increasing its BTO supply from 8,000 units to 9,000 units this year. So far, HDB has launched 3,945 BTO flats from Jan to Aug 09. Flat buyers can look forward to another 5,000 new BTO flats over the next 3 months in various locations. This translates to an average of 1,500 new flats monthly, with at least 2 BTO launches each month.
In addition, HDB will launch a Sale of Balance Flats (SBF) exercise today, and offer another 2,132 flats for sale. The SBF consists of flats accumulated from earlier BTO exercises, surplus SERS replacement flats, repurchased flats etc. It replaces the existing Balloting Exercise, Quarterly Sales and Half-Yearly Sales. HDB will only conduct the SBF as and when there are sufficient numbers of such flats accumulated.
For this SBF, there is a wide range of flats in terms of location, flat type and price. HDB expects very strong interest for these flats and they are likely to be many times oversubscribed. Buyers who would like greater certainty in getting a new flat should apply under the BTO, which is HDB’s primary mode of flat offer.
The BTO system was implemented after a review of the method of selling flats in 2001. Prior to this, HDB sold flats under the Registration of Flats System (RFS). Every buyer in the queue was promised a flat, resulting in a waiting time of 7 years at its peak. However, the 150,000 households in the queue did not reflect real demand. The queue disappeared when the Asian Financial Crisis hit, and HDB was left with 20,000 unsold flats.
Today, HDB will build new flats under the BTO system only when a good majority of flats in a project are booked. The BTO system allows HDB to build according to real demand and to respond flexibly to the needs of flat buyers. It also provides greater certainty to flat buyers. Majority of first-time applicants have a chance to select a BTO flat within two tries. Flat buyers can look forward to possession of their flats 3 years after booking.
The BTO system allows HDB to ramp up new flat supply quickly when demand is high. Conversely, when demand is low, HDB will scale back to avoid oversupply.
2,132 flats are being offered under the SBF today. Spread over 24 towns/estates, the flat supply comprises 121 units of Studio Apartments (SA), 58 units of 2-room, 345 units of 3-room, 1,184 units of 4-room, 281 units of 5-room, 32 units of Executive flats, as well as 77 and 34 units of S1 and S2 flats.
Prices start from $97,000 for SA, $111,000 for 2-room, $118,000 for 3-room, $178,000 for 4-room, $238,000 for 5-room and $324,000 for Executive flats. Buyers looking for more affordable options can consider the flats at Jurong East and Jurong West, where prices of 2-room, 3-room, 4-room and 5-room flats range from $111,000 to $124,000; $118,000 to $227,000; $219,000 to $327,000 and $238,000 to $385,000 respectively.
At least 90% of the flat supply (excluding SA) for Public Applicants will be set aside for first-timers. No
additional chances will be accorded to repeatedly unsuccessful first-timers. Details of the flat supply are provided in Annex 1
First-timer applicants who do not select a flat when their turn is due and there are flats for selection will be considered as having rejected one chance. First-timers who reject 2 chances to select a flat will have their first-timers priorities removed for a one-year period for all HDB sales exercises.
Flat buyers are advised to exercise financial prudence and buy a flat that they can afford. Buyers who do not find a flat of their choice in this SBF should apply under BTO, which is HDB’s main mode of supply. In Oct 09, HDB will launch 2 BTOs in Jurong West and Sengkang, with a total of more than 1,000 flats with a wide range of flat types.
Flat buyers can also consider buying a resale flat where there is a wide range of choice in terms of budget and location. Eligible first-time flat buyers can enjoy a CPF Housing Grant of up to $40,000. In addition, the Government also offers extra help with the Additional CPF Housing Grant (AHG) of up to $40,000 for first-time homebuyers with average monthly household income of $5,000 or less.
Households interested in buying a flat under the SBF can visit an exhibition at the HDB Hub Sales Display Area (Atrium, 1st storey) to find out more.
Application should be submitted online at the HDB InfoWEB: http://www.hdb.gov.sg
from 1 Oct 2009 (Thursday) to 14 Oct 2009 (Wednesday)
. More details of the application procedures can be found at Annex 2
For enquiries on the SBF, the public can contact HDB:
· E-mail email@example.com
· Call the Sales/Resale Customer Service Line at 1800-866 3066 on Mon to Fri from 8 am to 5 pm; or
· Visit the HDB Sales Office to speak with our Customer Service Officers during office hours (Mon to Fri 8am to 5pm, Saturday 8am to 1pm).