Waiting time for new flats cut by half under the BTO system

Under the current Built-To-Order (BTO) system, flat buyers will get their new flats much faster. It saves about half the time that it would take under the previous Build-to-Sell mode.

According to National Development Minister Mah Bow Tan, buyers have to wait up to three years for their flats to be ready under BTO.

Under the Registration for Flats system or Build-to-Sell mode, buyers had to wait for six to seven years.

Mr. Mah was replying in Parliament to MP for West Coast GRC Ho Geok Choo, who wanted to know if there are any plans to return to the Build-to-Sell mode.

She was concerned that the resources and plans of many new applicants on starting a family would be affected by the waiting time for BTO flats.

“The subscription rate that we are getting now, although it appears large, does not seem to indicate there is such a large pent-up demand, contrary to what many of us think,” said Mr. Mah.

He also said that the BTO system can test demand and is more flexible than the Build-to-Sell mode.

“If the answer is there are not enough flats, we will just keep rolling it out”, he said.

He also cited figures showing the feasibility of the current system.

The Build-To-Sell system attracted 150,000 applicants in the queue for new flats at the peak of the property boom. However, during the Asian Financial Crisis, the government was burdened with 31,000 unsold flats.

Mr. Mah described it as a “waste of public money” because it took the government five years to clear the unsold flats.