SINGAPORE, Aug 27 — To meet higher demand from first-time applicants for Build-To-Order (BTO) flats, the Government will be increasing the ratio of flats in BTO launches for these aspiring homeowners.

In a statement this morning, the Ministry of National Development (MND) and Housing and Development Board (HDB) said that the following change will take effect from the August 2022 BTO exercise:

At least 85 per cent of the three-room BTO flat supply and 95 per cent of the four-room and larger flat supply in non-mature estates will be set aside for them.

This is up from the current levels of at least 70 per cent and 85 per cent respectively. (For mature estates, the Government will continue to set aside at least 95 per cent of BTO flat supply for these families.)

Up to 65 per cent of the non-senior two-room Flexi flats in non-mature estates will be set aside for them, an increase from up to 50 per cent currently.

"This is consistent with our past approach to revise the BTO allocation quota based on demand from first-time applicants and second-timer families,” said the agencies, adding that the Government is committed to helping Singaporeans own their first homes.

They cited how for example, in Nov 2009, the Government increased the BTO allocation quota for first-time family applicants to meet demand amidst tight housing supply during the period.

In March 2012, the authorities also increased the allocation quota for all BTO flats in non-mature estates to families applying for the second time to provide them with more housing options after largely fulfilling demand from first-timers.

Higher Demand from First-Timers

Currently, applications by first-timers continue to form the bulk of BTO applications, said MND and HDB.The number of unique first-time family applicants has "increased significantly” from over 19,000 in 2018 to about 34,000 in 2021.

There were 4.1 first-time family applicants per BTO flat in 2021, compared with 2.2 in 2018, signalling robust demand for housing among this group, said MND and HDB.

"We also recognise that first-time applicants generally have more pressing and immediate housing needs to start their life plans. With the adjustments, more BTO flats in non-mature estates will be set aside for first-time families, and this will increase their chances of securing their first home.”

The agencies noted that demand from single first-time applicants for two-room flexi flats in non-mature estates has also increased.

In 2021, there were 7.5 such applicants per such flat, up from 5.1 in 2020.

On the other hand, application rates from families, whether they are first-time and second-time applicants, have remained low at 0.5 and below for the past two years.

To meet the demand from single first-timers, a larger proportion of two-room Flexi flats in non mature estates will therefore be allocated to this group. — TODAY