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HDB prizes BTO system's greater certainty
It will not revert to old system of Registration for Flats. -myp
http://www.asiaone.com/print/Business/My+Money/Property/Story/A1Story20100223-200303.html
Tue, Feb 23, 2010
my paper
By Rachel Chan
THE Housing Board will not revert to its old system of selling flats - the Registration for Flats System - as it cannot gauge genuine demand for new flats, resulting in over-building and wastage of public money, said Minister for National Development Mah Bow Tan yesterday.
The current build-to-order (BTO) system, introduced in 2001, gives both HDB and buyers greater certainty, as construction starts only when 70 to 75 per cent of the flats are booked and downpayments are made, he said.
The BTO system is a superior one, which can be tweaked if need be, he added.
He was replying to Member of Parliament for West Coast GRC Ho Geok Choo, who asked if HDB would return to the old system, as the three-tofour- year wait for BTO flats affects applicants' resources and plans to start a family.
The HDB will roll out more flats if demand outstrips supply, Mr Mah reassured Madam Ho, when she asked if the 12,000 BTO units offered this year would be "sufficient to stave off pent-up demand".
He said: "Unfortunately, the subscription rates that we're getting now - although it appears large - does not seem to indicate that there is a large pent-up demand, contrary to what many of us think."
There is no significant time lapse between the time applications are submitted and the time construction on flats begins, he said. HDB takes up to six months to process all the applications for a project.
Replying to Nominated Member of Parliament Terry Lee's question, Senior Minister of State for National Development Grace Fu said that the Government does not track the type of properties owned or rented by new citizens, as it does not distinguish between indigenous and new citizens.
It will not revert to old system of Registration for Flats. -myp
http://www.asiaone.com/print/Business/My+Money/Property/Story/A1Story20100223-200303.html
Tue, Feb 23, 2010
my paper
By Rachel Chan
THE Housing Board will not revert to its old system of selling flats - the Registration for Flats System - as it cannot gauge genuine demand for new flats, resulting in over-building and wastage of public money, said Minister for National Development Mah Bow Tan yesterday.
The current build-to-order (BTO) system, introduced in 2001, gives both HDB and buyers greater certainty, as construction starts only when 70 to 75 per cent of the flats are booked and downpayments are made, he said.
The BTO system is a superior one, which can be tweaked if need be, he added.
He was replying to Member of Parliament for West Coast GRC Ho Geok Choo, who asked if HDB would return to the old system, as the three-tofour- year wait for BTO flats affects applicants' resources and plans to start a family.
The HDB will roll out more flats if demand outstrips supply, Mr Mah reassured Madam Ho, when she asked if the 12,000 BTO units offered this year would be "sufficient to stave off pent-up demand".
He said: "Unfortunately, the subscription rates that we're getting now - although it appears large - does not seem to indicate that there is a large pent-up demand, contrary to what many of us think."
There is no significant time lapse between the time applications are submitted and the time construction on flats begins, he said. HDB takes up to six months to process all the applications for a project.
Replying to Nominated Member of Parliament Terry Lee's question, Senior Minister of State for National Development Grace Fu said that the Government does not track the type of properties owned or rented by new citizens, as it does not distinguish between indigenous and new citizens.
