900 flat buyers cancelled BTO bookings in 2018: Lawrence Wong

About 900 HDB flat buyers cancelled their BTO flat bookings last year said National Development Minister Lawrence Wong in Parliament on Tuesday (Jan 15).

Responding to a question from Member of Parliament Ang Wei Neng, Mr Wong revealed that 25 per cent of these flats were 2-room Flexi or similar flats, 15 per cent were 3-room flats, 38 per cent were 4-room flats and 22 per cent were 5-room flats.

He added that the main reasons given for cancelling the BTO flat bookings were either a change in housing plans, which could have meant that buyers wished to remain in their existing flat, or buy a resale flat, or a change in financial circumstances which affected the flat purchase.

Depending on the flat type, buyers who cancel their flat booking before signing the Agreement for Lease forfeit the booking fee, which ranges from S$500 to S$2,000, added Mr Wong.

Should they cancel the booking after signing the Agreement for Lease, buyers have to pay a forfeit of five per cent of the flat price. They would also need to wait a year before they may apply for another subsidised flat.

“These measures are in place to ensure that buyers are serious when they apply for a flat, and do not deprive others who are in urgent need of buying a flat.” said Mr Wong. “Nevertheless, where there are valid grounds, HDB has waived the forfeiture on a case-by-case basis.”

Source: Channel NewsAsia – 15 Jan 2019

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