To ensure a more efficient allocation of HDB flats and reduce the number of people who decline to select a flat when given the opportunity, the Singapore government has implemented new rules that will take effect from the August 2023 BTO launch. The rules expectedly reduce the instances of non-selection which, in turn, will accelerate the process of securing a flat for those needing it.
From the August 2023 BTO exercise, first-time buyers who fail to book a flat when selected to do so will face stricter penalties. The Singapore government seeks to ensure a more efficient allocation of HDB flats and reduce the number of people who decline to select a flat when given the chance.
To guarantee this, the government has come up with rules that affect first-timers. They will be redesignated second-timers for a year in the computer ballot if they fail to book a BTO flat when selected. Second-timers who also decline to select a unit will have to wait for one year before they can apply for a BTO flat once more.
Huttons Asia reveals that if 20,000 BTO flats were released in a year, up to 60,000 queue tickets would be allocated to applicants. But, around 24,000 or 40% of the applicants had failed to choose a flat. With this change, the number of non-selections is expected to drop, thus allowing more applicants to book a flat.
These tightened rules take into account individuals who do not show up for their flat selection appointments or decide not to book despite being offered one. The change might also cause more people to turn to the HDB resale market. Those affected may use the increased Central Provident Fund housing grants to secure a four-room or smaller resale flat.
To aid first-time new flat buyers, the government has also given priority to certain specific groups and more options for seniors and low-income singles. Moreover, first-time buyers aged 40 and below, which comprise about 10% of all first-timer family applicants, will now get three ballot chances for a BTO flat and be allocated a higher proportion of BTO flats and SBFs.
This step is taken to satisfy housing demand, reduce the population of first-time homebuyers and also to offer flats to those with urgent needs. By enforcing stricter regulations, HDB hopes to discourage people who do Champions Way Condo not have genuine reasons for selecting a flat from taking up available units. This way, more flats are available for those with pressing housing needs.