HDB ramps up BTO launches to reduce disappointment

Minister for National Development Khaw Boon Wan revealed in his latest blog entry that ramping up the launches of build-to-order (BTO) flats will increase applicants’ chances of getting a unit, as it reduces the application rate.

Data gathered by the Housing and Development Board (HDB) on winning applicants during BTO exercises held from January to March 2011 revealed that the probability of being able to select a BTO flat was higher when there were lesser applicants for them.

The minister wrote, “For January BTO, practically all first-timers got to select a flat.  Even second-timers got an 84 percent chance to select. However, as application rate increased to five or eight, the chances fell significantly, especially for second-timers. That is why we are ramping up BTO launches to reduce application rate, and hence raise the chances for our applicants.”

He also stressed in his blog that the HDB “'loads' the ballot in favour of first-timers”.

He stated that for the February BTO exercise, first-timers were “three to five times more likely to be selected than second-timers” in choosing their flats.

He added that more loads have been given to first-timers who had not been successful in previous BTO launches.

Mr. Khaw noted that his ministry is dealing with the issue by offering applicants more choices.

“We are trying to offer larger BTO launches. This way, we hope to provide more choices and reduce the odds of repeated disappointment.”

To contact the journalist, you may send your message to editor@propertyguru.com.sg