HDB will be replacing its existing Walk-In Selection (WIS) system for unsold flats with a combined balloting/walk-in sales system called the “Bi-monthly Sale of 4-room and Bigger Flats” beginning Apr 2007. The improved sales exercise will incorporate features of the existing balloting and walk-in selection systems.

2         Under the combined balloting/walk-in system, HDB will group its stock of unsold 4-room and bigger flats into 3 sectors according to towns/estates as follows:

Sector A – towns/estates in the North and West zones
Sector B – towns/estates in the North-east zone
Sector C – mature / established towns/estates

The unsold flats under each sector will be launched for sale on a bi-monthly basis, on the 10th day of even months.¹ The first exercise for flats in Sector A will start on 10 Apr 07. This will be followed by launches for Sector B on 11 Jun 07 and Sector C on 10 Aug 07, before rotating back to Sector A on 10 Oct 07 (i.e. there will be a sales exercise launched for the unsold flats in each sector every 6 months). HDB will announce each launch through a press release and advertisements in the media. The detailed flat list and prices will also be made available on the HDB InfoWEB and at HDB Hub. The towns/estates under the respective sectors and the scheduled launch dates in 2007 are shown in Annex A.

3         Interested buyers can submit their applications to HDB during the initial one-week application period. A computer ballot will then determine the order of selection and all applicants will be given an appointment to book a flat, subject to availability when their turn is due. Applicants who apply after the initial one-week period will be given appointments after the last balloted position. After all scheduled appointments have been processed, remaining flats will be available for booking on a walk-in basis. Unsold flats will be withdrawn at the end of the 5th month, so that they can be prepared for re-launch one month later. The step-by-step sales procedure is at Annex B for reference.

4         Flat buyers can look forward to the following benefits under the improved system:

(a) greater certainty when planning their flat purchase as the launch dates and location sectors follow a fixed pattern;
(b) no need to queue as all applicants who submit their applications in the first week of the launch will be given equal chances to select choice units through balloting;
(c) more time to study the flat list available on the first day of launch, before submitting their applications within the first week; and
(d) improved convenience with the option of submitting applications via the internet.

5         To facilitate the transition to the combined balloting/walk-in system, flats currently available for sale under WIS will be withdrawn by 15 Mar 2007.

Monthly Sale of 3-room and smaller flats

6         The combined balloting/walk-in system for the sale of unsold 4-room and bigger flats will be applied to the existing monthly WIS exercise for 3-room flats with effect from Apr 07.

7         Beginning Apr 07, HDB will offer 3-room flats, together with unsold 2-room flats and returned Studio Apartments under the “Monthly Sale of 3-room or smaller flats” to be launched on the 1st day of every month.² As the number of such flats is smaller, the sales exercises can take place on a monthly basis. The sales procedure is at Annex C for reference.

8         To facilitate the transition to the improved system, flats currently available for sale under the existing WIS for 3-room flats will be withdrawn by end-Feb 2007 and there will not be any WIS exercise for 3-room flats on 1 Mar 07.

Investigation into Feb 2007 WIS

9         HDB offered for sale 556 flats in established estates under the WIS exercise on 2 Feb 2007. The formation of an unofficial queue outside HDB's Sales Office prior to HDB’s announcement on 2 Feb led some members of the public to believe there had been an information leak on the launch date of the exercise.

10         HDB has completed its investigations into the matter. We interviewed 40 applicants who were at the head of the queue, as well as HDB staff and contractors involved in the WIS. We have found no evidence to suggest that information on the launch was leaked.

11         Investigations revealed that most of the applicants had decided to queue up based on speculation on internet forums that there would be a WIS exercise for flats in established estates in Jan or Feb 07. This arose from HDB’s earlier announcement in Nov 06 when it suspended the sale of flats in established estates that the re-launch would be in 1Q07. Some participants on the internet forums even organised themselves into groups to take turns to keep watch at HDB Hub for tell-tale signs of a sales launch, such as the placement of queue posts. When they saw that a queue had formed for the regular monthly WIS exercise for 3-room flats on 1 Feb 07, some decided to join that queue in anticipation that it was for the flats in established estates.

12         Many of the applicants were unaware that the flats offered were balance units from earlier sales exercises and units given up by previous buyers. Out of the 4,600 appointments for interested buyers to book their flats, only 355 units have been booked, reflecting an overall acceptance rate of less than 10%. To date, there are still about 200 units available for interested buyers to select.

13         The incident showed that the existing WIS sales process could be enhanced to ensure greater transparency and convenience to the public. The improved system was therefore designed with these objectives in mind.

Enquiries

14         For enquiries, the public can:

         - e-mail hdbsales@hdb.gov.sg;
         - call the Sales/Resale Customer Service Line at 1800-8663066 on weekdays from 8 am to 5 pm; or
         - visit the HDB Sales Office to speak with our customer service officers during office hours.


Note:
^[1] If the 10th day is a Sunday or public holiday, the flats will be launched on the next working day.
^[2] If the 1st day is a Sunday or public holiday, the flats will be launched on the next working day.


ANNEX A

Town/Estate Categories and Schedule of Launch Dates for Bi-monthly Sale of 4-room and Bigger Flats in 2007

Sector	Apr 07	Jun 07	Aug 07	Oct 07	Dec 07
A North & West zone Sembawang Woodlands Yishun Bukit Batok Bukit Panjang Choa Chu Kang Jurong West Jurong East	Launch on 10 Apr 07			Launch on 10 Oct 07
B North-East zone Sengkang Punggol Hougang		Launch on 11 Jun 07			Launch on 10 Dec 07
C Mature towns Ang Mo Kio Bedok Bukit Merah Bukit Timah Bishan Clementi Central Area Geylang Kallang / Whampoa Marine Parade Pasir Ris Queenstown Serangoon Tampines Toa Payoh			Launch on 10 Aug 07

Note: The actual location of flats offered will depend on the availability of supply and may vary from one exercise to another.


ANNEX B

Procedure for Bi-monthly Sale of 4-room and Bigger Flats

a) Announcement of launch

HDB will announce the sales launch bi-monthly on the 10th day of the month (or the next working day) through a press release and advertisements in the media which will make known the towns/estates in the particular Sector and the number of flats on offer. The flat list will also be made available on the HDB’s InfoWeb and at HDB Hub on the same day.

b) Submission of application

Applicants are given one week to submit their applications through Internet. Those without Internet access can come to HDB Hub or to the nearest Branch Office where they will be assisted to submit their application.

c) Ballot for selection order

At the end of the one-week application period, HDB will ballot all applications for their queue position.

All applicants will be notified of their balloted position and selection date through email and SMS. Applicants can also call HDB’s HomeLink to enquire on their selection appointment. The balloting results will also be posted on the website and Notice Board at HDB Hub Sales Office and all HDB Branch Offices.

Selection appointments will be scheduled within 2 months from the date of launch.

d) Submission of application after one-week application period

Interested applicants who have missed out on the one-week application period can still submit their application. They will be given appointments after the last balloted position.

e) Treatment of unselected flats

Any flats unselected after the appointments are cleared will remain open for booking on a walk-in basis. Applicants who are in urgent need of housing can come to HDB Hub Sales Office and book one of these units on the spot. The balance units will be withdrawn at the end of the 5^th month and re-launched in the 7^th month.


FLOW CHART

See attachment 1 (31KB)


ANNEX C

Procedure for Monthly Sale of 3-room or smaller flats

1         On the 1st day of every month or the next working day, an announcement will be made through a press notice on the sale of 3-room or smaller flats. The application period is 2 days. All applications are to be submitted electronically through Internet (eSales). Those without Internet access can come to HDB Hub or to their nearest Branch Office where they will be assisted to submit their application.

2         A ballot for the position to select a flat will be conducted and all applicants will be notified of their balloted position and selection date through email and SMS. Applicants can also call HDB’s HomeLink to enquire on their selection appointment. The balloting results will also be posted on the website and at HDB Hub Sales Office, and Branch Offices.

3         Interested applicants who miss out on the 2-day application period can submit their application over the counter. They will be given appointments after the last balloted position, or will be allowed to book a flat immediately if the appointment for the last balloted applicant is over. All selection will be done within 1 month.


FLOW CHART

See attachment 2 (33KB)