Better to release more BTO flats per launch: Khaw Boon Wan

Better to release more BTO flats per launch: Khaw Boon Wan
By Joanne Chan | Posted: 18 July 2011 1339 hrs
     
SINGAPORE : The Housing and Development Board (HDB) is unlikely to release new flats next month - planning instead for a bigger launch in September.

National Development Minister Khaw Boon Wan on Monday said the key is to push out more flats per launch and a wider range of units, so that buyers are less likely to face the disappointment of being unable to select a flat.

Making his first official visit to the HDB Hub in his capacity as National Development Minister, Mr Khaw spoke with flat applicants to understand their concerns.

Affordability and availability of flats were some issues that came up.

One applicant said: "We heard from a lot of friends who said that maybe you would be rejected by HDB a few times."

Writing in his blog on Sunday, Mr Khaw said that based on earlier Build-To-Order (BTO) project launches, almost all applicants get a chance to select a flat, if a project has about two applicants per unit offered. This, as almost one in two successful applicants drops out during the selection process.

However, the chance of selection drops when the subscription rate rises.

The solution is bigger launches.

Mr Khaw said: "Previously, when HDB released a small launch, in fact it is worse. Each time you release a few hundred units, everybody would rush for those few hundred units, and many will get disappointed for sure. That is why I move away from monthly launch, and do a combined launch.

"I do not think we would do any in August. I am trying to combine with September to have a bigger launch, so 4,000 units, or even bigger units...I think that will do a lot to calm the market and reduce disappointment."

Mr Khaw also dismissed talk that BTO flat prices have dropped significantly since he took office.

Prices for units launched this month started from S$137,000 for a three-room flat, S$217,000 for a four-room flat and S$274,000 for a five-room flat.

The starting prices were S$166,000, S$264,000 and S$335,000 for the same flat types in May's launch of 4,000 new flats.

Mr Khaw said many factors are at play, including location.

Mr Khaw said prices for BTO flats have stabilised over the last two launches and expects prices to continue holding. He said the HDB is on track to releasing 25,000 BTO flats this year, and more units will be offered per launch.

His advice to home buyers is: do not panic or rush into buying.

Mr Khaw said: "Prices are not increasing, but (they are) also not dropping sharply because there is no reason (for them) to drop sharply unless our cost actually drops or the market begins to drop. Hopefully, that would be reassuring to Singaporean buyers, young couples."

Mr Khaw expressed confidence that those who have been unsuccessful a few times will soon be able to select a flat. And the situation of undersupply, while not quite solved, has become more manageable.

Also addressing concerns that his online musings blur the line between personal opinion and official policy, Mr Khaw said he relies on a range of channels to communicate his messages.

For example, he said his recent blog post which analyses the profile of successful BTO flat applicants would have been "too dry" for a press conference.

Putting the information online allows readers who are interested to have a deeper look at the figures.

However, he said that when the information is market-sensitive, he would be very mindful of the timing and the channels used to relay the information.

- CNA/cc/ms

- wong chee tat :)