2017 BTO flat supply set to dip

[reporter2]

http://www.businesstimes.com.sg/real...ply-set-to-dip

2017 BTO flat supply set to dip

ERA key executive officer sees possible impact on resale market as a result of fewer BTO flats being available

Thursday, December 15, 2016

by Lee Meixian

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@LeeMeixianBT


THE Housing & Development Board (HDB) will launch about 17,000 new flats for sale to Singaporeans in 2017, about 5 per cent fewer than the 17,900 build-to-order (BTO) flats launched in 2016.

National Development Minister Lawrence Wong said in his blog post on Wednesday: "We are gradually tapering supply but still ensuring a healthy pipeline to meet demand. Once again, we will offer a good spread across the mature and non-mature estates. This will give buyers a range of choices, including young couples who wish to live near their parents, or the elderly who want to right-size and age in place."

The 17,900 flats in 2016 were spread evenly across the mature and non-mature estates.

ERA Realty Network's key executive officer Eugene Lim said: "This is not a drastic reduction in supply. Also, this number is not set in stone and can be adjusted upwards or downwards, according to the demand for BTO flats."

He added that while BTO and resale buyers form generally distinct groups, there could possibly be some impact on the resale market as a result of fewer BTO flats being available.

Potential home buyers could feel that they may have a lower chance of a successful ballot and turn to the resale market, where prices have been quite stable and the waiting time has shortened.

Former national development minister Khaw Boon Wan had made the move to ramp up BTO supply in 2011 to tackle a supply shortage and soaring home prices after he took on the portfolio.

After the backlog was cleared and the BTO demand stabilised, Mr Khaw cut back BTO supply by about 30 per cent to about 15,100 units in 2015, from about 22,500 units in 2014.

The BTO supply was boosted slightly in 2016 to take into account the larger pool of qualifying buyers after the income ceiling was raised from S$10,000 to S$12,000. About 2,200 more households were able to buy a subsidised flat under the higher income ceiling.

On Wednesday, Mr Wong said: "We will continue to monitor the market, make adjustments to our building programme, and review our schemes to meet the housing needs of Singaporeans.

"For example, over the past year, I've received feedback from young couples to make the waiting time for BTO flats shorter. So I've asked HDB to plan and prepare the land for several new sites which can subsequently be put out as BTO units with shorter waiting time. These units will not be ready next year, but I hope we can begin to offer them by 2018."

In the most recent November BTO launch, the application rate for first-timer families applying for three-room or bigger flats in non-mature estates has remained "stable and manageable" at 1.5 times, Mr Wong said.

"This means that BTO applicants will be able to get a flat within their first or second try, and most definitely by the third try," he added, once again encouraging young families to apply for BTO flats in non-mature estates to increase their chances of success.

The projects in mature estates saw significantly higher application rates from 1.6 times for Bedok North Vale to as high as 12.1 times for four-room units in Kallang Residences.

This year, some 4,100 households also benefited from the enhanced Special CPF Housing Grant, and about 6,000 households benefited from the Proximity Housing Grant when they bought a flat in the resale market close to their parents or married children.

Applications for the Fresh Start Housing Scheme were also opened at the start of December. This will help second-timer families with young children living in public rental housing to own a home again.

"All of these demonstrate our commitment to keep home ownership within reach of all Singaporean families. But our work is not complete. We will press on with our mission to house a nation, and to help Singaporeans own a home that meets their budget and needs," Mr Wong said.

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http://www.straitstimes.com/singapor...ffer-next-year

Slight dip in new BTO flats on offer next year

Dec 15, 2016

17,000 new units to be launched, down 1,000 from this year; shorter waiting times from 2018

Ng Jun Sen


There will be fewer new flats for home seekers in the coming year, with the supply of Build-To-Order (BTO) units thinning slightly to 17,000.

This is down from the 18,000 launched this year, and in line with expectations as the economy slows and fewer new families are formed.

But young couples buying for the first time still have reason to cheer: They will get their homes faster.

A new effort to shorten the building time is being kick-started for them, and the flats may be launched by 2018. They could be built as early as 2020.

Currently, BTO flats take three to four years to be built. In October, National Development Minister Lawrence Wong had said this period will be cut to two to three years.

In a blog post yesterday, Mr Wong said he had asked the Housing Board to plan and prepare the land for several new sites which can subsequently be put out as BTO units with shorter waiting time.

''These units will not be ready next year, but I hope we can begin to offer themby 2018.''

Faster access to public housing was cited by Prime Minister Lee Hsien Loong at the National Day Rally as one key measure to encourage millennials to form families.

On the BTO supply next year, Mr Wong said his ministry is ''gradually tapering supply but still ensuring a healthy pipeline to meet demand''.

Like this year, next year's BTO flats will see a similar spread across mature and non-mature estates, giving buyers a range of choices.

The dip in supply is part of a generally downward trajectory over the past five years-and analysts expect the pattern to continue, especially if the economy remains soft.

Between 2011 and 2013, a peak of 25,000 BTO flats were launched annually, to alleviate a housing shortage that flared as a political issue during the 2011 election.

The numbers went down to 22,500 and 15,000 in subsequent years, before going back up to 18,000 this year. ''This kept prices stable and offered many choices to home buyers,'' said Mr Wong.

Mr Nicholas Mak, head of research and consultancy at SLP International Property Consultants, said the authorities should continue to reduce the BTO numbers.

Some non-mature estates such as Sembawang and Yishun saw low application rates by first-time buyers this year, he said. Balance flat sale figures have also remained relatively high at around 10,000.

This suggests that previous BTO offerings were too high, according to experts. Chris International director Chris Koh said: ''There are fewer BTO orders this year (so)... there should be fewer new flats. It is called BTO for a reason.''

Mr Wong said yesterday that his ministry will continue to monitor the market, make adjustments and review its schemes to meet Singaporeans' housing needs.

Prospective BTO buyers such as financial adviser Chng Joe Wei welcomed the news about shorter wait times. The 29-year-old said: ''When you are ready for BTO... you are ready to receive the flat already. Shorter waiting times mean more flats for us, and it means more kids since most would want to have their home first.''