Oral Answer by Ministry of National Development on BTO flat owners delaying key collection or asking for waiver of holding interest
May 8, 2017
Mr Zaqy Mohamad: To ask the Minister for National Development since 2016:
(a) whether there has been an increase in the number of BTO flat owners asking to delay the collection of keys or for a waiver of payment of holding interest because of difficulties in selling their existing property and, if so, what is the increase;
(b) how many of such owners have had to cancel their BTO flats and forfeit deposits despite HDB exercising flexibility; and
(c) what are the top reasons for those whom HDB have been unable to assist in such situations.
Answer:
Between 2016 and the first quarter of 2017, less than 2% of BTO flat buyers invited by HDB to collect keys to their booked flats had asked for a deferment due to difficulties in selling their existing flats. Over this period, we have not observed an increasing trend in the proportion of such cases.
For these buyers, HDB already exercises flexibility and grant a reasonable time extension. The vast majority were able to sell their existing flats and complete the new flat purchase. However, a minority, or 45 buyers in particular, eventually opted to cancel their new flat bookings, pay the forfeiture, and continue living in their existing flats. The main reasons for their cancellations include changes to the buyers’ overall financial circumstances, or they no longer wished to proceed with the new flat purchase for their own personal reasons.
Flat buyers are advised to exercise prudence in their flat purchase. If they plan to finance a new flat purchase with the sale proceeds from their existing flat, they should take into account possible changes in market conditions, which may affect their plans and be realistic in their asking prices. In addition, they can make use of HDB’s regular updates on the Probable Completion Date of their new flats to plan the sale of their existing flat.