Oral answer by Ministry of National Development on reasons for BTO non-selection and measures to exclude frivolous applications

Mar 21, 2023

To ask the Minister for National Development (a) what are the reasons why 40% of HDB BTO applicants do not book a flat when invited to do so at selection exercises; (b) how does the Ministry determine whether the reasons provided for failing to book are legitimate; (c) whether applicants will be required to submit proof under the tightened BTO selection rules; and (d) what measures will be taken to exclude applicants who participate in BTO selection exercises for frivolous reasons.

Answer

1      Applicants are not required to provide or justify their reasons to HDB for choosing not to book a flat. The most common reasons shared by applicants who did not book a flat when invited to do so are as follows – firstly, their preferred units have been taken up; secondly, they have since decided to buy a resale flat; or, thirdly, they have changed their minds and want to apply for flats in other sales exercises instead.

2      While there are different reasons for non-selection, such applicants do crowd out other homebuyers who may have more urgent housing needs. Hence, we have the rules for non-selection. From the August 2023 Build-To-Order (BTO) exercise, first-timers (FTs) with one non-selection count will be considered as second-timers (STs) for a year in the computer ballot, while STs with one non-selection count will not be allowed to participate in sales exercises for a year. To be fair to applicants who are left with limited choices, HDB will not issue a non-selection count to applicants with ten or fewer BTO flats, or five or fewer Sale of Balance flats, to choose from when their turn is due. This is regardless of the applicants’ reasons for non-selection.

3              Where there are extenuating circumstances, HDB may exercise flexibility to waive the non-selection count. Each appeal is evaluated on its own merits, and appellants will need to provide documentary evidence to HDB to substantiate their case where necessary.