Towards the end of the previous property boom, HDB suddenly realised “we’ve got too many HDB units than the people wanting to buy them”. Then as the property market declined, those that saved their money to place a deposit on their dream HDB home realised that with the same amount of money they could get a private condo or apartment. All these factors casued an accumulation of unsold HDB units in many newly developed towns – like Sengkang, Jurong, Sembawang etc. Many people would have probably forgotten all these unhappy times (unhappy for some, glee for others). The glut in the property market and abundance of HDB flats lead to the Build-To-Order (BTO) system.
The Build-To-Order (BTO) is a responsive system offering flexibility in location and timing for flat buyers. Eligible buyers planning to shift into a new HDB apartment in the near future can apply for apartments in their preferred location from specific sites launched. [quoted from HDB web]
Since last year HDB had already pushed the BTO system, the most recent launches are:
- Segar Meadows in Bukit Panjang Ring Road, comprising 412 three- and four-room flats
- Compassvale Beacon in Punggol Road, comprising 750 two-, three-, and four-room flats
According to the reports in the news, the authorities will also launch for sale four plots of land in Bishan, Simei, Toa Payoh and Bedok for flats to be built and sold by private developers. Another three sites – in Yishun, Jurong, and Sengkang – will be made available next year for development of executive condominiums.
However, because of the long wait for BTO flats (approx. 3 years), some applicants that have been unable to get their unit of choice turned to the resale market to purchase their flat. Of course many of such applications still profess to wanting a brand new unit, as it feels good to own something that is newly built, with newly landscaped surroundings, is definitely much better than getting a flat from the resale market (apart from the higher price they might need to fork out).
We do not forsee the BTO system helping to reduce the present high demand for newly developed HDB flats soon. Should you be considering purchasing a new HDB flat, or looking to move to a new environment, please consult with us for details on new property launches and HDB resale flats – that suit your budget and your requirements.