3,000 applicants fail to complete purchase of HDB flats in last 2 years

Seven per cent or about 3,000 applicants failed to complete the purchase of their new Housing and Development Board (HDB) flats after successfully selecting one in the last two years.

There were 43,000 bookings for new HDB flats in 2010 and 2011.

In a written reply to a parliamentary question filed by MP for Pasir Ris-Punggol GRC Gan Thiam Poh, the Ministry of National Development said there were three main reasons for this.

The reasons include financial difficulties following a job loss, break-up in a family relationship and a change in preference for location.

Currently, all flat buyers are required to pay a non-refundable booking fee when selecting a unit.

Those who fail to complete the purchase after signing the lease agreement will forfeit five per cent of the purchase price of the flat.

They will also be debarred for one year from participating in HDB sales exercises, or receiving housing grants for purchase of a resale flat.

Source : Channel NewsAsia – 14 Nov 2012