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SG More 2-rooms, but fewer larger flats in 2014

Property Here - Tuesday, December 31, 2013

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In order to meet the high demand from singles, the housing board on Monday announced that it will ramp up the supply of two-room Build-to-Order (BTO) flats in non-mature estates to 5,000 units by 2014 from just 2,600 this year. 

Moreover, unsold two-room flats from previous BTO exercises that were set aside for families will be offered to singles due to unmet demand. 

“For example, in the July 2013 BTO exercise, 34 percent and 51 percent of the two-room flats offered in Sengkang and Yishun respectively were booked by singles. These proportions are higher than the quota of 30 percent,” said HDB. 

It also plans to cut the supply of new three-room and larger flats by 18 percent from 22,600 units in 2013 to around 18,600 by 2014. Despite this, the planned supply of larger flats surpasses the estimated 15,000 new Singaporean family formations next year. 

“This (move) is timely as the supply and demand for BTO flats by families has achieved a better balance,” noted HDB, adding that it will also provide 700 studio apartments for seniors looking to right-size their homes. 

In total, HDB will offer 24,300 flats next year, down from the 25,100 in 2013. 

Meanwhile, data shows that BTO application rates among families have fallen, with the average first-timer application rate slipping to 1.7 times in 2013, average second-timer application rate falling to 7.1 times, while the average BTO application rate eased to 3.0 times from 5.3 times in 2010.

Nevertheless, HDB will continue to prioritise families, allocating at least 70 percent of the flats in each non-mature estate project for them.