Written Answer by Ministry of National Development on BTO flat buyers failing to meet eligibility
Oct 10, 2016
Mr Zainal Sapari: To ask the Minister for National Development
(a) in the last two years, what is the number of BTO flats that have been returned to HDB after the home buyers failed to meet the conditions stipulated for key collection; and
(b) whether HDB can exercise flexibility by allowing these home buyers to sell their existing flat above the racial quota for the block/neighbourhood especially after more than six months of trying to find the right buyer in order to take possession of their new flat.
Answer:
At the point of key collection, BTO flat buyers must remain eligible for the flat purchase under an HDB eligibility scheme. In addition, they would need to pay the balance purchase price of the flat to complete the transaction. In 2014 and 2015, an average of about 700 BTO flat buyers per year did not collect keys because they were unable to fulfill one of the above conditions. They formed a very small percentage of about 3% of the 23,000 flat buyers per year who were due to collect their keys.
HDB is unable to waive the ethnic limits under the Ethnic Integration Policy (EIP) to facilitate BTO flat buyers in selling their existing flats. The EIP ensures a good mix of residents in our neighbourhoods and public housing estates. Furthermore, from the large volume of resale transactions annually, HDB has observed that many flat sellers are still able to secure buyers from eligible ethnic groups.