Oral Answer by Ministry of National Development on cancelling BTO flat bookings

Jan 15, 2019

Mr Ang Wei Neng: To ask the Minister for National Development 

(a) what is the number of HDB flat owners who gave up their new BTO flats in 2018, broken down by flat type;

(b) what are the reasons for owners giving up their new BTO flats; and

(c) whether their deposits are forfeited.

Answer:

In 2018, about 900 HDB flat buyers cancelled their BTO flat bookings, of which 25% were 2-room Flexi or similar flats, 15% were 3-room flats, 38% were 4-room flats and 22% were 5-room flats.

The main reasons cited for cancelling the BTO flat bookings were either a change in housing plans, for instance they wished to remain in their existing flat, or buy a resale flat, or a change in financial circumstances which affected the flat purchase.

Flat buyers who cancel their flat booking before signing the Agreement for Lease forfeit the booking fee, which ranges from $500 to $2,000, depending on flat type. If they cancel the flat booking after signing the Agreement for Lease, the forfeiture is 5% of the flat price. They would also need to wait a year before they may apply for another subsidised flat. These measures are in place to ensure that buyers are serious when they apply for a flat, and do not deprive others who are in urgent need of buying a flat. Nevertheless, where there are valid grounds, HDB has waived the forfeiture on a case-by-case basis.