HDB: 3 instead of 4 BTO sales exercises for 2024

SINGAPORE: The Housing and Development Board (HDB) of Singapore has revealed plans for three BTO sales exercises instead of four this 2024, Channel News Asia reports. The total number of new public housing flats to be introduced in 2024 is set at 19,600, distributed across three launches scheduled for February, June, and October. This marks a departure from the previous year, where 22,800 BTO flats were launched over four sales exercises.

Why 3 BTO sales exercises instead of 4?

"With three BTO launches instead of four, home buyers can look forward to a bigger housing supply at each launch. This will enable them to select from a wider range of flats and locations," stated HDB on Monday, Jan 8. In 2023, HDB introduced an average of 5,700 flats per BTO exercise, while this year's three exercises are expected to offer an average of 6,533 flats, increasing the chances of success for applicants in finding a flat that suits their budget and needs. The February 2024 BTO exercise will see approximately 4,100 flats available in locations such as:

• Bedok
• Queenstown
• Choa Chu Kang
• Hougang
• Punggol
• and Woodlands

Around 1,500 Sale of Balance Flats (SBF) units will be offered in February. The reduction in BTO launches correlates with moderation in application rates for first-time buyers across all flat types. In 2023, the median number of applicants per unit dropped to 1.9, significantly lower than the 3.7 recorded in 2019, prior to the COVID-19 pandemic. The October 2024 sales exercise will introduce a new flat classification system, replacing the mature or non-mature categorization with Standard, Plus, and Prime categories based on location and other attributes. However, this reclassification will not apply retrospectively to existing flats or those already launched.

What about waiting times for new flats?

In terms of waiting times, HDB aims to decrease them further in 2024. In 2023, nearly 70% of flats had waiting times of four years or less, similar to pre-pandemic levels. HDB aims to achieve a 75% target for new flats launched in 2024 to have waiting times of four years or less. More than 2,800 Shorter Waiting Time (SWT) flats, with waiting times of less than three years, will be part of the 2024 launch, a significant increase from the 732 SWT flats offered in 2023. HDB aims to surpass its annual target of launching 2,000 to 3,000 SWT flats by achieving it in 2024, a year ahead of schedule. HDB reported that 2023 marked a substantial achievement in completing about 80% of the pandemic-delayed projects, totalling 73 projects from October 2020 to December 2023. “With these completions, HDB has continued to catch up on construction delays and successfully delivered about 80 per cent of the pandemic-delayed projects, or a total of 73 from October 2020 to December 2023,” HDB said. The remaining 19 COVID-delayed projects are under construction, with HDB working diligently to deliver them by early 2025, barring unforeseen circumstances. /TISG