http://www.straitstimes.com/Singapor...ry_756797.html

Balloting rules for BTO flats set to change

Second-time buyers may benefit, going by hint in Khaw's Nov blog

Published on Jan 18, 2012

By Jessica Cheam, Housing Correspondent


THE Housing Board may soon change its balloting system for new flats, with second-time home buyers likely to benefit.

National Development Minister Khaw Boon Wan said yesterday that he hopes to announce changes to the HDB's build-to-order (BTO) balloting rules for the next sales launch in March.

The Housing Board's first BTO project for the year was launched earlier this month and offered 4,000 new homes across Tampines, Choa Chu Kang, Punggol and Sengkang. The launch closed yesterday, with an application rate of 1.5 first-timers for every flat available.

Mr Khaw wrote in his 'Housing Matters' blog that this rate was 'not surprising', and was similar to the subscription rate of 1.6 seen in the HDB's November BTO launch.

'Both are good rates; they mean that practically all will get a chance to choose a unit,' he said.

As of yesterday, the HDB had received 9,593 applications for the 3,633 flats offered, excluding studio apartments.

'Our goal to help young couples get their first homes is coming true. We can now move on to better help the second-timers,' Mr Khaw added.

The application rate for second-timers for the January BTO launch is 23.9, compared to 25.9 in the November one.

In a previous post in November, Mr Khaw had hinted that 'once we have cleared the first-timer queue, we can help the second-timers more'.

The BTO scheme provides the main supply of new homes in public housing, which covers about 80 per cent of the population.

Currently, 95 per cent of flats launched are set aside for first-time buyers, and the remaining 5 per cent are for second-time home buyers.

Property firm PropNex's chief executive Mohamed Ismail said that if such changes were to happen, they would be timely for the market.

Going by recent application rates - which have been below two for every flat in the past two launches - the market has stabilised, especially in the demand from first- timers, he noted.

'This is a clear indication that government efforts in increasing new home supply are working, and a lot of first-time home buyers who weren't successful previously are now getting homes,' he said.

If the HDB continues building at the current pace, there will be an increased supply in the market which first-timers may no longer be able to absorb, he added.

'So it's fair and timely, for example, to increase the number of flats for second-timers since demand is still very high in that segment.'

The HDB plans to roll out 4,110 new flats in March in Bedok, Bukit Batok, Bukit Panjang, Bukit Timah, Clementi, Geylang and Toa Payoh - part of the supply of 25,000 new homes for the year.

[email protected]