Next year’s Build-To-Order (BTO) exercises will include about 4,000 two-room flats to cater to demand from singles and low-income families, Minister of National Development Khaw Boon Wan said in a written response to a query in yesterday’s parliamentary session.
The government intends to launch four BTO exercises in 2015, for a total of 16,900 new flats.
To augment the supply of new flats, HDB will conduct Sale of Balance Flat (SBF) exercises, adding several thousand units of unsold balance flats to the market.
“As the number of new Singaporean family formations is estimated at about 15,000 each year, we are confident that the proposed supply should be adequate. Moreover, as resale prices continue to moderate, we can expect more buyers to return to the resale market rather than await the building of BTO flats,” Mr Khaw said.
He added the government cannot leave completed HDB flats empty to wait for a surge in demand as buffer stock is not cost-free.
“What we can do is to try to project and build ahead of demand as closely as it is possible. At this point, our focus is on ensuring a smooth transition from the ramp-up to a more sustainable phase, as the supply and demand for BTO flats achieve a better balance,” Mr Khaw said.
Yesterday, the government shared HDB resale flats cost around 31 per cent more than BTO flats in the suburbs.
Image (by HDB): Artist’s impression of BTO flats
Muneerah Bee, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
