SINGAPORE – Around 20 per cent of applicants in each Build-To-Order (BTO) sales exercise had applied for previous launches, said the Housing Board.
That is one factor that contributed to higher BTO application rates in recent years, HDB said in response to queries from The Straits Times.
It also pointed to more BTO projects launched in popular mature estates in the past two years as another likely factor behind the rise in application rates.
The overall number of applications received per BTO flat increased from 2.6 times in 2018 to 5.8 times in 2020, before tapering slightly to 5.5 times in 2021, said the Ministry of National Development in a parliamentary reply in January.
Some BTO projects in mature estates, such as Telok Blangah Beacon in Bukit Merah, have drawn sky-high interest. The project had nearly 50 applicants vying for each of the 70 four-room flats in May last year, despite a starting price of $602,000 and waiting time of more than five years.
There were 12 projects in mature estates last year and 13 in 2020, compared with nine in 2017.
The 2020 BTO projects included two in Bishan – the first time a project is launched there in 14 years – while the 2021 slate had the first Queenstown BTO project in nine years. Each of the four-room flats – the largest flat type in the projects – in both estates drew between six and eight applicants.
HDB does not restrict applicants with an upcoming appointment to book a flat from applying in another BTO exercise, to maximise their chances of securing a new flat. Flats are allocated through balloting.
During the pandemic, HDB extended the flat booking period to six to eight months – up from four to six months before – to take into account Covid-19 safe management measures.
This longer booking period has allowed more people to apply in consecutive launches, said HDB, noting that BTO sales exercises are held every quarter – typically in February, May, August and November.
There will thus be one or more launches held before an applicant goes for his appointment to book a flat from his initial application, said HDB.
It added that the relaxation of Covid-19 measures will allow it to shorten the flat booking period to what it was pre-pandemic.
HDB gives out queue numbers to applicants that are up to 300 per cent of the flat supply in each BTO sales exercise. This means that if a BTO project has 1,000 available units, up to 3,000 applicants will be issued a queue number.
They are then scheduled to book their flats in person at the HDB Hub in Toa Payoh.
Civil engineer Haley Tan, 26, has a queue number for a four-room BTO in Tengah from the February 2022 launch but applied in the current exercise for a four-room Sale of Balance Flat (SBF) flat in Sengkang, which has a shorter waiting time.
“There’s a three to four years waiting time for the Tengah BTO so we’re hoping to try our luck with a SBF flat this round since both are within our budget of below $400,000,” she said.
The current sales exercise will end on Thursday (June 2).
HDB also disclosed that the dropout rate in each BTO sales exercise averages around 40 per cent. These are applicants who could book a flat but decided not to do so.
The average 40 per cent rejection rate means that those who have a queue number within 170 per cent of the flat supply would stand a good chance of selecting their flats, said HDB. This means if there are 1,000 flats on offer, those with queue numbers up to 1,700 will likely get a chance to book a flat.
In 2021, nine of the 27 projects launched by HDB that year had a first-timer application rate of 1.7 or lower.
Around 90 per cent of first-timer families have been successful within two tries for a BTO flat in non-mature estates, said HDB.
HDB added that those who have been unsuccessful in two or more attempts in non-mature estates will get an additional ballot chance at their subsequent application for a BTO flat in non-mature estates.
Cyber security analyst Joseph Lee, 27, who had been unsuccessful in his previous five BTO applications in non-mature estates, is giving it one last go in the current launch.
If he fails to book a five-room flat in Yishun, he may consider going for a new executive condominium although he has concerns about the cash outlay required.
“At this point, I’m quite numb to this BTO process and I don’t really put much hope into my applications. It seems to come down to how lucky you are; if you don’t have the luck to get a queue number, than you just have to deal with it,” said Mr Lee, adding that he applies in non-mature estates to maximise his chances.
Engineer Yuan Zihang, 26, who had been unsuccessful four times in both mature and non-mature estates, hopes to land a four-room flat in Queenstown in the current sales exercise.
“My wife and I are still quite excited each time there’s a BTO launch to see where the projects are located and we try to imagine ourselves living around that area, although we are left disappointed in the end,” said Mr Yuan.
“HDB’s promise to launch more BTO flats in the near future gives us some hope but after a few more failures, maybe we’ll get demoralised, who knows?”
“Source: [Why are HDB BTO application rates so high? What does your queue number say about your chances?] © Singapore Press Holdings Limited. Permission required for reproduction”
