Better to release more BTO flats per launch: Khaw Boon Wan

National Development Minister Khaw Boon Wan said it’s more effective to release a larger number of Build-To-Order (BTO) flats per launch as it gives home buyers greater choice and improves their chances of selecting a unit.

Thus, the BTO projects for the next two months will be combined into a single launch, and will likely be put up for balloting in September.

Mr Khaw was speaking to reporters after visiting HDB Hub Monday morning, his first in his new capacity as National Development Minister.

Writing in his blog Sunday, he said based on figures from earlier BTO launches, if a project has about two applicants per unit offered, almost all those in line will get a chance to select a unit as many will drop out.

However, the likelihood of selection drops when the subscription rate increases.

As such, Mr Khaw said it’s more effective to release more units per launch so that home buyers will have a higher chance of selection.

Mr Khaw was at the HDB Hub Monday morning to meet flat applicants and frontline officers to understand their concerns.

Some issues highlighted by the applicants included the numerous tries required to secure a BTO flat and the affordability of flats.

Mr Khaw also said that BTO flat prices have stabilised over the last two launches and will likely continue holding with more flats coming onto the market.

He also cautioned the public against taking individual figures and prices out of context and making headlines out of outliers.

Mr Khaw said his priority now is to continue stabilising the market.

Source : Channel NewsAsia – 18 Jul 2011

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