The Housing and Development Board (HDB) will launch 16,900 new Build-To-Order (BTO) flats next year – down from 22,400 units in 2014 – but supply will be “adequate” given that an estimated 15,000 Singaporean families are formed each year, the Ministry of National Development (MND) said in a written Parliamentary reply on Tuesday (Nov 4).
The new flats will include about 4,000 two-room flats to cater to demand from singles and low-income families. To augment the BTO supply, HDB will also conduct Sale of Balance Flat (SBF) exercises involving several thousand unsold balance flats.
“As resale prices continue to moderate, we can expect more buyers to return to the resale market rather than await the building of BTO flats,” MND said.
Addressing a query from MP Gan Thiam Poh on whether HDB will carry extra stock of BTO flats, the ministry said there is no reason to hold empty blocks of completed flats to await a surge in demand, as “buffer stock is not cost free”.
“What we can do is to try to project and build ahead of demand as closely as it is possible. There are bound to be temporary shortfalls or surpluses, as our market is also subject to external events which are beyond our control,” it said.
“At this point, our focus is on ensuring a smooth transition from the ramp-up to a more sustainable phase, as the supply and demand for BTO flats achieve a better balance.”
Source : Channel NewsAsia – 5 Nov 2014