Debated in Parliament on 14 Nov 2012.
Mr Gan Thiam Poh asked the Minister for National Development (a) in the last two years, how many applicants have successfully selected their BTO flats but failed to complete the purchase; (b) what were the reasons given; and (c) what measures does HDB intend to take to minimise such cases that can lead to a distortion of the subscription rate of newly launched BTO flats.
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In 2010 and 2011, there were 43,000 bookings for new HDB flats. To date, about 3,000 applicants, or 7%, failed to complete the purchase after they had successfully selected their flats.
The three main reasons were (a) financial difficulties following a job loss; (b) break-up in family relationship; and (c) a change in preference for the location.
Currently, we require all flat buyers to pay a non-refundable booking fee when selecting a unit. For those who fail to complete the purchase after signing the lease agreement, 5% of the purchase price of the flat will also be forfeited. In addition, flat buyers who fail to complete the purchase after selecting a flat will be debarred for one year from participating in HDB sales exercises, or receiving housing grants for purchase of a resale flat.
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