BTO QUOTA RAISED FOR SECOND-TIMER FAMILIES
Speaking in parliament during the debate on his ministry’s budget, Mr Lee also announced that the allocation quota for three-room and larger BTO flats for second-timer families will be raised by 5 percentage points.
Second-timer families refer to households that have previously enjoyed one housing subsidy and qualify for less subsidies for a second home.
HDB last adjusted in August 2022 the proportion of BTO supply set aside for BTO applicants.
Then, in view of strong demand from first-time applicants, it was announced that at least 85 per cent of three-room flats and 95 per cent of four-room and larger flats in non-mature estates would be set aside for first-timer families, up from 85 and 70 per cent previously.
Application rates for first-time families have since come down, amid government efforts to balance demand-supply disruptions brought on by the COVID-19 pandemic, said Mr Lee.
He noted that BTO application rates for first-time families have stabilised to below pre-pandemic levels – from 3.7 times in 2019 to 2.1 times in 2024. In the most recent BTO sales exercise in February, first-time families’ application rate fell further to 1.5 times.
With that, the government will look at the needs of other groups, including second-timer families.
“We also hear the concerns of second-timer families who need to buy another subsidised flat and these include families who have grown and others who may wish to right-size due to financial reasons,” he said, adding that the change in allocation quota for this group will take effect from the next BTO exercise in July 2025.
“We do not expect significant impact on the application rate for first-timer families, as we are continuing to build more BTO flats to meet demand,” said Mr Lee.
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