Written answer by Ministry of National Development on Allowing Unsuccessful First-time Flat Applicants Another Opportunity to Choose Flats at BTO Exercise Based on Number of Previous Attempts

Feb 4, 2025

Question No: 7131

Question by: Mr Gan Thiam Poh

To ask the Minister for National Development whether the HDB can consider a new system where HDB ranks unsuccessful first-time applicants based on their number of previous attempts, and then allowing such applicants another opportunity to choose flats that remain available after the initial round of selection in that particular BTO exercise

Answer:

We are committed to provide affordable and accessible housing for Singaporeans, including first-timer families. We have ramped up our flat supply and HDB is on track to launch about 102,300 Build-To-Order (BTO) flats from 2021 to 2025.  As a result, application rates for BTO flats have dropped to below pre-COVID levels. Flat applicants now stand a higher chance of being invited to book a flat. In 2024, the average application rate for first-timer families across all flat types was 2.1, well below the pre-COVID rate of 3.7 in 2019. 

We also set aside the majority of our flat supply for first-timer families, and prioritise those with greater needs. From the October 2023 BTO exercise onwards, we introduced the First-Timer (Parents & Married Couples), or FT(PMC) priority category, to provide additional support for a subset of first-timer families who may have more pressing housing needs. Under this FT(PMC) category, married couples, as well as families with young children, receive one additional ballot chance for their application in a BTO or Sales of Balance Flat (SBF) exercise, across all projects. This is on top of the two ballot chances that other first-timer families receive.  FT(PMC)s also receive first priority under the Family and Parenthood Priority Scheme (FPPS), when they apply for a 4-room or smaller Standard BTO flat. As a result, about nine in ten FT(PMC)s on average were invited to book a flat in the three BTO exercises since October 2023 where flat booking has been completed.     

Additional support is also given to first-timer families who were unsuccessful in previous attempts. Those with two unsuccessful BTO attempts for a Standard flat will be given an additional ballot chance for every subsequent BTO application for a Standard flat.

To improve the efficiency of our balloting system, the rules for non-selection of new flats have been tightened since October 2023.  As a result, the non-selection rate has halved from 40% previously to about 19% over the last three BTO exercises where booking has been completed. From the Feb 2025 BTO and SBF exercises onwards, HDB will shortlist applicants up to 200% of the flat supply, instead of up to 300%. This will improve system efficiency by allowing applicants to secure their flats more quickly.  Those without a queue number can also make arrangements earlier or proceed to apply for the next BTO/SBF exercise without having to wait for a flat booking appointment. The small number of unselected flats from each launch are offered in SBF exercises, in which first-timer applicants are also prioritised.

With the significant grant increases in March 2023 and August 2024, first-timer families who buy a resale flat on the open market can receive up to $230,000 in housing grants. 

With these various measures in place to prioritise first-timer applicants, we have no current plans to allow unsuccessful first-timer applicants another opportunity to choose flats that remain available after the initial round of selection as suggested by the Member.