The allocation of new Build-To-Order (BTO) flats to individuals who have the most urgent housing needs is being explored by the government, according to National Development Minister Desmond Lee.
During a dialogue with over 70 young working adults on Singaporeans' housing requirements on Sunday, he noted that certain parts of the first-timer population had an urgent need for a home.
In order to keep up with the changes, he noted that the classification of towns as mature and non-mature estates is being studied for possible revision.
In response to concerns about the availability of affordable public housing in the face of intense competition and high application rates, Mr. Lee stated that the Housing Board has increased the supply of BTO flats in 2022 and is prepared to maintain the rate of launches through 2025 if demand remains high.
Mr. Lee stated at the Lifelong Learning Institute's debate that the HDB will launch a bumper crop of approximately 10,000 units across 10 projects during the November BTO sales exercise. This will be the most sizable BTO exercise in at least two years.
Mr. Lee stated that the majority of participants at the debate, the sixth and last in a series on public housing, agreed that priority should be given to first-time homebuyers, despite the fact that there are varied degrees of housing urgency among this group.
He observed that the majority of respondents believed that first-time parents without a home should be given priority over current homeowners. Others pointed out that elderly and singles have legitimate needs as well.
"We are examining how we might further prioritize access to public housing for individuals with the most pressing housing requirements, including first-timers," he added.
"However, it is difficult to achieve a consensus on how to identify whose requirements are more urgent, as the direct conflicts noted in the ideas we've received show."
Regarding if young individuals continue to have access to public housing, Mr. Lee stated that the majority of BTO apartments are reserved for first-time buyers. In August, the allocation quota for first-time families in non-mature estates was raised from 85% to 95% for four-room and bigger BTO apartments, and from 70% to 85% for three-room BTO flats.
Mr. Lee stated that some first-timers continue to experience failed ballots, mostly because they are applying to mature estates or for Sale of Balance Flats, for which the application rate is quite high.
The Housing and Development Board (HDB) has been releasing more developments in older estates, and different programmes such as the Married Child Priority Scheme increase the odds for those who qualify, but demand may still exceed supply in really popular places, he added.
He said that the demand for flats in mature estates may have partly originated from the idea that they offer superior facilities and transit linkages. However, when non-mature estates develop, such distinctions fade and become less significant.
Sengkang and Jurong East, two communities now designated as non-mature estates, have facilities equivalent to those in mature estates, according to him.
The Ministry of National Development said in the past that the classification of mature and non-mature is based on the availability of land in each municipality, but did not elaborate. According to experts, buyers frequently utilize the categorization to generate a general sense of cost and surrounding amenities.
Mr. Lee stated, "We are now evaluating whether and, if so, how our estate categorization should be modified to keep up with the times. I hope that, for the time being, couples are willing to explore a BTO apartment in a non-mature estate or a project with a lower application rate if they wish to increase their chances of success."
During the seminar, the participants divided into small groups to explore various viewpoints on homebuyers' requirements and desires. Priority should be given to first-timers, and additional space is required, according to the majority of comments.
Mr. Lee stated that the recommendations made throughout the talks have been extremely beneficial and that the government is analyzing them. There are no simple solutions to these problems, and we would benefit from having more brains consider them.
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