Singles not affected by 2-room Flexi

Romesh NavaratnarajahSeptember 25, 2015

2R flexi scheme flats

The new 2-room Flexi Scheme is unlikely to affect the chances of single applicants looking to get a new flat, reported The Straits Times, citing the Housing Board.

The 2-room Flexi combines and replaces the previous studio and 2-room flat schemes.

Of the combined supply, 40 percent in each Build-To-Order (BTO) project will be reserved for applicants aged 55 and above, announced Prime Minister Lee Hsien Loong during the recent National Day Rally.

However, it wasn’t clear at the time what it meant for non-elderly single applicants, who were previously offered half of all new 2-room flats within non-mature estates.

Responding to media queries, HDB explained that the remaining 60 percent and those not taken up by the elderly in non-mature estates would be split among families and non-elderly singles.

This implies that at least 30 percent of the 2-room Flexi supply in non-mature estates would be reserved for non-elderly singles. In fact, they may even get more since flats not taken up by families and the elderly will also be offered to them.

Moreover, elderly buyers within mature estates are likely to buy new flats within the same area, which means less competition for non-elderly singles who cannot afford new flats within mature estates.

“Based on past application trends, we thus do not expect significant impact on non-elderly singles’ chances of getting a 2-room Flexi flat,” said an HDB spokesman.

Non-elderly singles are even expected to get most of the flats since 2-room flats and studio apartments have been undersubscribed by families and elderly applicants.

The BTO exercise in November 2014, for instance, saw fewer family applicants for 2-room flats than available units – no more than 0.7 second-timer families for each unit and no more than 0.2 first-timer families.

While the HDB does not expect this trend to change, it will still monitor the take-up rate for such units by different groups and adjust the quota if necessary.

 

Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg

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