National Development Minister Khaw Boon Wan made a commitment in Parliament on October 19, that every newlywed couple earning below S$10,000 dollars will be able to afford and get their first Build-To-Order (BTO) flat.
The HDB has ramped up the supply of new flats to meet demand and the market imbalance is showing signs of improvement.
The September BTO launch saw a moderate to low application rate, which means almost everyone will get a chance to select a flat.
Excluding a project in Ang Mo Kio, in central Singapore, which drew six applicants for each 3-room unit offered, other BTO projects in areas like Jurong East, Sengkang and Punggol) received less than three applicants per flat – a comfortable range based on past launches as many applicants drop out.
HDB will launch another 4,200 BTO flats in November.
But even as it deals with immediate needs, the authorities are also planning for the medium to long term to ensure a steady supply of flats.
This includes creating a new town in Bidadari that can house up to 12,000 units, or a population of about 40,000 people.
The site is a former cemetery that was closed in 1972 and authorities completed the extraction of graves in 2006.
While there are few traces of its past standing today, analysts say it will take time for home buyers to get comfortable with the idea of living there.
SLP International research & consultancy executive director Nicholas Mak, said: “The government may need five to 10 years to remove all traces of the cemetery. It may need to perhaps change the name of Bidadari and it takes also about that length of time to gradually change the impression of many home buyers.”
But given its proximity to the business district and being serviced by two MRT stations, it may prove to be the needed nudge for home buyers.
Past experiences have shown that Singaporeans are a practical lot.
Bishan, a popular estate well-liked for its central location and proximity to good schools, was also built over a former cemetery.
Source : Channel NewsAsia – 23 Oct 2011