Allocating Bigger Proportion of BTO Flats for First-time Home Buyers in light of Construction Delays

Mr Seah Kian Peng asked the Minister for National Development whether the Ministry will review its policy and consider allocating a bigger proportion of BTO HDB flats for first-time home buyers in light of current delays to all BTO projects and longer waiting time for prospective homeowners.

Helping families to secure their first home continues to be a key priority for MND and HDB. This is why we set aside most new flat supply for those applying to buy a home for the first-time:

(a) at least 85% and 95% of the 4-room and bigger BTO flats in the non-mature estates and mature estates respectively; and

(b) at least 95% of the 3-room and bigger flats offered in Sale of Balance Flats exercises.

First-timer applicants also have a higher chance of getting shortlisted to select a BTO flat. They are given two ballot chances instead of one and first-timer families who have been unsuccessful in two attempts for BTO flats in the non-mature estates are given an additional ballot chance at their subsequent application for a BTO flat in the non-mature estates. As a result, virtually all applicants of BTO flats in non-mature estates have been successful within their first three tries. First-timer families with urgent housing needs also have the option of buying a resale flat and can receive up to $160,000 in housing grants.

As HDB has already set aside a vast majority of its flat supply for first-timer families, there are no current plans to increase the proportions further. Nevertheless, HDB will continue to monitor the market situation closely and calibrate the supply of public housing accordingly, to ensure that the flat supply remains responsive to the housing needs of the population.