Hard to get that first flat? Not so

Mah sets records straight on claims by couples

NATIONAL Development Minister Mah Bow Tan has refuted claims by some first-time buyers that they could not get an HDB flat despite repeated applications.

Mr Mah said yesterday that some of the assertions that have appeared in media reports recently were 'not entirely truthful'.

Home seekers had claimed that they were unsuccessful despite making several applications, while one hopeful said he lodged 18 attempts but still did not secure a home.

But Mr Mah said: 'What is actually happening, is not a matter of buyers getting a flat, it's a matter of them getting it and not selecting it for one reason or another.'

HDB figures yesterday showed that eight in 10 first-timers could get a flat on their first try if they were not choosy; the success rate was 96 per cent for the second try.

This is under the build-to-order (BTO) scheme, the HDB's main supply of new flats. Projects get built when a certain demand is reached and flats typically take three to four years to be built.

'If you look at this, you'll know that the supply of new flats under the BTO programme is more than adequate, that is an assurance that I want to give to younger couples setting up homes for the first time,' said Mr Mah.

'Don't worry, there are flats available for you, in different parts of Singapore at prices that are affordable. But we need to impress upon flat buyers that you may not get the dream flat of your choice the first time, but you have to make the decisions, and consider the trade-offs.'

This could mean living in a more affordable home but further away from the city, he said.

One of the media reports that prompted Mr Mah to speak out featured Mr Soh Say Kiat, who said he and his wife had applied 18 times since 2001 but did not get a flat.

The HDB said yesterday that its records, which started from 2002, showed that the couple made 12 applications and were offered flats three times but did not take any.

In another instance, Mr Jayce Ng and his wife told The Sunday Times that they applied at least eight times but were offered only one unit, which they turned down.

The HDB said records showed the couple were offered a flat seven times but did not select any.

Mr Ng, 30, however, pointed out that buyers who reject flats could have been offered leftovers with undesirable attributes.

'You can't blame me for having high expectations and not wanting to live on the second floor when I'll be living there for the next 10 years - and this is a lifelong investment,' he told The Straits Times.

The prospect of living on the second floor also proved a deal breaker for Mr Soh, who gave up the chance to book flats when he found out what level they were on.

'I don't want to be forced to get a flat I don't want,' he said.

The HDB data yesterday showed that even when applicants have the entire block of flats to choose from, three in 10 buyers still reject units.

In February's launch of Champions Court in Woodlands, the rejection rate on the first day of selection was 24 per cent. The rate was 36 per cent for Fernvale Crest in Sengkang launched in June.

The rejection rate for BTO projects by first-timers was as high as 67 per cent in 2007 - meaning almost seven in 10 applicants rejected any flats offered to them.

This figure has since come down to about 52 per cent after the HDB introduced new rules in May last year to penalise non-serious buyers by removing their first-timer priorities.

Mr Mah acknowledged yesterday that three to four years might be a long wait for some young couples but noted the best way to cut short the waiting time was to plan ahead.

Couples can book a flat under HDB's Fiance/Fiancee Scheme, which lets them join the flat queue early - before they get married, he said.

Mr Mah was speaking to the media after chatting to buyers at the sales counters at the HDB Hub in Toa Payoh.

One home buyer the minister spoke to, Ms Lim Yu Fang, 22, signed up yesterday for a five-room flat at a Punggol BTO project which cost $331,000.

'Although the wait is long, we still went ahead because it's more affordable compared to resale flats,' said Ms Lim.

Source: Straits Times, 8 Oct 2009