Singaporeans blamed for wasting their chances to select flats

Ms. Lily Wan, HDB's Deputy Director for Policy & Property, wrote to the Straits Times Forum recently to answer mounting questions over the limited number of flats being constructed to meet the increasing demand.

In her letter, Ms. Wan wrote that HDB “has already ramped up the supply of new flats” in response to strong demand.

She also explained that the oversubscription for BTO launches is not due to limited flat supply but because many home buyers do not choose when they get the chance.  

“Last year, almost 50 percent of first-time applicants in BTO launches did not select a flat upon invitation. So it is not true that there is inadequate supply of new flats,” added Ms. Wan.

However, some Singaporeans believe that HDB did not build enough flats between 2006 and 2008, when demand was already escalating due to the influx of foreigners.

In 2008, only 3,183 new flats were constructed when there were 20,000 new citizens and more than 90,000 PRs.

The decrease in the number of new flats built by HDB coincides with the rising prices of resale flats. In addition, some Singaporeans who need a flat on their own are forced to buy a more expensive flat in the resale market, thereby contributing to the overall inflation of prices.

Although HDB is now “ramping up the supply of new flats”, some Singaporeans think it is already too late to meet the current demand and they would have to pay a hefty amount.

To counter the perception of some people that PRs are largely responsible for the escalating prices of resale flats, Ms. Wan claimed that 80 percent of resale flat buyers and 95 percent of flat owners are citizens.

Based on the data released by HDB, PRs account for 20 percent of resale flat buyers. The figure represents a significant share in the market and is more than enough to affect the prices of flats.

Furthermore, the actual figures can be decreased artificially as some may buy the flats as PRs, but take up citizenships later.

Some Singaporeans continue to ask questions as to why fewer than 12,000 flats were built between 2006 and 2008, when there are over 100,000 new arrivals in one year alone.