50% drop-out rate for selection of BTO flats in 2009

According to HDB, one in two applicants did not book a flat under the Build-To-Order (BTO) system when invited to do so.

This figure was revealed by National Development Minister Mah Bow Tan in Parliament, who added that high application rates for recently launched BTO projects do not reflect genuine demand for flats.

Mr. Mah noted that 22 percent of BTO applications during the past four months were mere repeat applications from the same households. He cited the Fernvale Palms, a recent BTO project that has just completed selection.

“By the end of the selection exercise just this week, 44 per cent of first-timers who were invited to select a flat declined, did not do so,” he said.

“They were given the chance; they went, they saw, they said, 'No, thank you, I don't want.' - even when all the flats were available on the first day, 34 per cent of applicants gave up their chance to select a flat.”

Members of Parliament, such as Cynthia Phua and Cedric Foo, had questioned if there was an adequate supply of housing.

In response, Mr. Mah said that HDB received almost 480 appeals during the past six months from homebuyers who said they could not get a flat. But he added that of these applicants, only six percent genuinely did not have a chance to select a flat in at least two BTO exercises in non-mature estates.

The government is committed to help Singaporeans to have their own home. But he encouraged homebuyers to be more realistic.

“It is not possible to promise every applicant who buys direct from HDB his 'choice' flat, at the floor of his choice; at the place of his choice; at the time of his choice; and at the price he wants. Our land is limited, especially in the mature estates. So is our housing budget, generous as it is,” he said.

“Buyers have to decide on the tradeoffs they want to make - whether they should keep on trying for their 'choice' flat, and delay setting up their home, or to settle first for one within their budget and move to a better flat later when they have built up their finances.”