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22-10-11, 19:10
http://www.businesstimes.com.sg/sub/news/story/0,4574,461218-1319140740,00.html?
Published October 20, 2011
YESTERDAY IN PARLIAMENT
Over 100,000 BTO flats can be built over 5 years
Minister Khaw aims to let newly-weds buy their first flat as soon as possible
By EMILYN YAP
THE government has committed to helping newlyweds earning less than $10,000 a month obtain their first build-to-order (BTO) flat as soon as possible, stating it is able to construct more than 100,000 flats in its current term.
Second-timers too can look forward to better chances of getting a BTO flat, as the government considers raising the proportion of units set aside for them in a year's time.
National Development Minister Khaw Boon Wan mentioned this in Parliament yesterday, as he shared plans for the next two years.
Recently married first-timers are getting Mr Khaw's immediate attention. The government is building 50,000 HDB flats in the first two years and 'if the demand remains strong, we have the resources and the capacity to build more than 100,000 HDB flats during this term of government', he said.
New flats may start coming up in Bidadari, which can potentially accommodate up to 12,000 units.
The government will also start planning for Tengah town - with a capacity for 56,000 units when fully developed - although it will not launch BTO projects there in its current term. What it will do is start building infrastructure such as roads and drains, and the works will commence later than those at Bidadari.
On the issue of affordability, Mr Khaw said that the government has 'stabilised the prices' of BTO flats since May.
'We have moderated price changes such that after adjusting for differences in location, amenities and other physical attributes, the May, July and September BTO prices were roughly comparable to the prices of similar units in the April BTO launch. The upcoming BTO launch next month will repeat this pattern,' Mr Khaw said.
Families earning less than $1,500 a month which are in need of subsidised rental flats are also on Mr Khaw's priority list. The government is looking at introducing more rental tiers - with smaller increments in rents as incomes rise - to retain the incentive for families to work harder and earn more, he said.
The waiting time for rental flats may also drop further in the next couple of years as new rental blocks become available.
As for other groups of homebuyers, Mr Khaw said he would attend to them 'more fully in due course'.
Second-time flat applicants, for instance, may get better chances of obtaining a unit some time next year as the government progressively clears outstanding demand from first-timers.
It estimates that there are about 16,000 first-timer families still waiting to buy a new HDB flat, and there are 15,000 new applicants each year.
The government keeps only 5 per cent of BTO flats for second- timers, even though they make up 40 per cent of BTO applicants. 'It is my hope that in a year's time, we can raise the percentage allocation for second-timers to improve their chances of getting a flat,' Mr Khaw said.
This will further cut demand in the HDB resale market and resale prices should begin to moderate, benefiting other homebuyers such as singles, he added.
Separately, in a release yesterday, HDB said that three out of seven BTO projects launched last month had attracted relatively low application rates. Golden Peony in Jurong West saw an application rate of 0.6; Anchorvale Harvest and Fernvale Rivergrove in Sengkang saw an application rate of 1.3.
'Based on past experience, these projects are not likely to achieve 70 per cent take-up rate at the selection exercise stage,' HDB said. 'Nonetheless, in line with the new approach of building ahead of order, HDB has proceeded to start the process of building all seven BTO projects.'
Published October 20, 2011
YESTERDAY IN PARLIAMENT
Over 100,000 BTO flats can be built over 5 years
Minister Khaw aims to let newly-weds buy their first flat as soon as possible
By EMILYN YAP
THE government has committed to helping newlyweds earning less than $10,000 a month obtain their first build-to-order (BTO) flat as soon as possible, stating it is able to construct more than 100,000 flats in its current term.
Second-timers too can look forward to better chances of getting a BTO flat, as the government considers raising the proportion of units set aside for them in a year's time.
National Development Minister Khaw Boon Wan mentioned this in Parliament yesterday, as he shared plans for the next two years.
Recently married first-timers are getting Mr Khaw's immediate attention. The government is building 50,000 HDB flats in the first two years and 'if the demand remains strong, we have the resources and the capacity to build more than 100,000 HDB flats during this term of government', he said.
New flats may start coming up in Bidadari, which can potentially accommodate up to 12,000 units.
The government will also start planning for Tengah town - with a capacity for 56,000 units when fully developed - although it will not launch BTO projects there in its current term. What it will do is start building infrastructure such as roads and drains, and the works will commence later than those at Bidadari.
On the issue of affordability, Mr Khaw said that the government has 'stabilised the prices' of BTO flats since May.
'We have moderated price changes such that after adjusting for differences in location, amenities and other physical attributes, the May, July and September BTO prices were roughly comparable to the prices of similar units in the April BTO launch. The upcoming BTO launch next month will repeat this pattern,' Mr Khaw said.
Families earning less than $1,500 a month which are in need of subsidised rental flats are also on Mr Khaw's priority list. The government is looking at introducing more rental tiers - with smaller increments in rents as incomes rise - to retain the incentive for families to work harder and earn more, he said.
The waiting time for rental flats may also drop further in the next couple of years as new rental blocks become available.
As for other groups of homebuyers, Mr Khaw said he would attend to them 'more fully in due course'.
Second-time flat applicants, for instance, may get better chances of obtaining a unit some time next year as the government progressively clears outstanding demand from first-timers.
It estimates that there are about 16,000 first-timer families still waiting to buy a new HDB flat, and there are 15,000 new applicants each year.
The government keeps only 5 per cent of BTO flats for second- timers, even though they make up 40 per cent of BTO applicants. 'It is my hope that in a year's time, we can raise the percentage allocation for second-timers to improve their chances of getting a flat,' Mr Khaw said.
This will further cut demand in the HDB resale market and resale prices should begin to moderate, benefiting other homebuyers such as singles, he added.
Separately, in a release yesterday, HDB said that three out of seven BTO projects launched last month had attracted relatively low application rates. Golden Peony in Jurong West saw an application rate of 0.6; Anchorvale Harvest and Fernvale Rivergrove in Sengkang saw an application rate of 1.3.
'Based on past experience, these projects are not likely to achieve 70 per cent take-up rate at the selection exercise stage,' HDB said. 'Nonetheless, in line with the new approach of building ahead of order, HDB has proceeded to start the process of building all seven BTO projects.'