19 JULY 2010

Question No. 441
Question by: Ms Ellen Lee Geck Hoon

Ms Ellen Lee Geck Hoon: To ask the Minister for National Development (a) how many of the 3,800 applicants for the 450 Build-to-Order (BTO) flats in Boon Lay Grove and how many of those eventually successful were (i) first (ii) second (iii) third and (iv) fourth or more time applicants; (b) what were their profiles in terms of age, profession, income and marital status; (c) in the last one year, how many unsuccessful applicants with two or more failed tries have been assisted by HDB to secure flats and how many were eventually successful in securing a BTO flat; and (d) what were their profiles in terms of age, profession, income and marital status.

Answer

1      HDB launched Boon Lay Grove in May 2010, offering a total of 450 flats. We received a total of 4,026 applications for this project. Applicants have been informed of their queue position earlier this month, and booking will start in August 2010.

2      About 3,200 or 80% of the applicants are first-timer households i.e. they have never bought a flat with housing subsidies. This is the priority group that the BTO sale exercises seek to cater for.

3      Among these first-timer households, 53% have not applied for any BTO projects in non-mature estates prior to Boon Lay Grove. 26% are second-time BTO applicants, 12% are third-time applicants and the rest (9%) are fourth-or-more time applicants. Among those with previous BTO applications, more than two-thirds (or about 1,100 applicants) have outstanding BTO applications for which the selection exercises have yet to commence¹. If they are successful in booking a flat in another project, they will have to give up their chances in Boon Lay Gro.

4      About 43% of first-timer households applied under the Fiancé-Fiancée Scheme i.e. they are not married yet. 67% of the first-timer households are aged between 25 and 34 years old. 66% of the households earn $5,000 or less.

5      The application rate does not necessarily represent real demand for housing as it is common for applicants to participate in multiple BTO applications at any one time. A better indicator of demand is whether applicants book or reject a flat when invited to do so. For the two most recent BTO projects where booking exercises have been completed, Montreal Dale (Sembawang) and Segar Grove (Bukit Panjang)², the drop-out rates for first-timers were 46% and 33% respectively. The drop-out rates on the first day where applicants had most of the flats to choose from were 38% and 14% respectively.

6      The application rate of Boon Lay Grove is higher than most BTO projects launched in the first half of 2010, reflecting the higher demand for new flats in estates that are relatively more developed. HDB recognises the desire for young couples to live near their parents, and has launched many BTO projects outside Punggol and Sengkang in the last year, covering a good spread of towns/estates such as Jurong West, Dawson, Hougang, Bukit Panjang, Choa Chu Kang, Yishun, Sembawang and Woodlands. However, it is not possible for HDB to meet the demand fully with new flats as there is limited land in these estates. HDB would also like to build up the critical mass in new estates in Punggol and Sengkang so that new amenities and facilities can be supported by the resident population as quickly as possible.

7      The Government is committed to helping Singaporeans own their first homes. Therefore, 95% of new flats are set aside for first-timers. For BTO projects, first-timer applicants receive two chances in the ballot as compared to one chance for second-timers, and four chances if they are applying to live near or with their parents. To help first-timers who are unsuccessful after two or more tries, additional chances are given to them from their third try onwards for a BTO flat in non-mature estates.

8      As a result, majority of first-timer applicants were invited to select a BTO flat in non-mature estate within two tries, for projects launched between January and December 2009. Very few first-timers have been unsuccessful after four applications for a BTO flat in non-mature estates. For the most recent BTO projects where booking exercises have been completed (i.e. Montreal Dale and Segar Grove launched in Dec 09), there were 22 cases whereby first-timer applicants were not invited to select a flat in a non-mature estate after at least four attempts. HDB will offer them help if they have immediate housing need.

9      To meet the demand for new flats, HDB has launched close to 9,000 BTO flats in the first half of 2010, and is prepared to launch an additional 7,200 BTO flats by the end of the year. This year’s total BTO flat supply of 16,000 units is almost twice of last year’s. The BTO supply will be supplemented by flats under the Design, Build and Sell Scheme (DBSS), as well as Executive Condominiums (EC) for the higher income buyers.

10      I would like to reassure Members that HDB is fully committed to ensuring that those who are genuinely looking for a home, will be able to do so.

*****

¹ BTO projects in January to April 2010.

² Launched in December 2009.

>>back to top