During today's MND COS debate, various initiatives were announced.
1. Impact of tightened rules for non-selection of flats to ensure more efficient flat allocation
Tighter rules will be imposed for the non-selection of BTO flats. The number of applicants will likely fall in the upcoming BTO sales launches after implementing the new rules. The chances of obtaining a unit will thus be higher for prioritised applicants. Many buyers who do not have urgent housing needs will likely hold back their applications until they are ready for marriage or when they have carefully weighed the housing options. Buyers will be more selective and take time to select the most suitable projects to apply to since they may risk not securing a unit on the second attempt.
More undergraduates and national servicemen may have joined the queue in the past, with some withdrawing their applications when the relationship soured. Now many may hold back their applications until they are committed to the relationship and are ready to settle down. Some may eventually turn to the private or HDB resale market since their incomes may be higher then.
To have better chances of obtaining a good unit on the first try, fewer people may apply for popular mature estates or PLH model flats as the application rates tend to be higher.
The penalty for non-selection may also cause more buyers to turn to the resale market. Should they fail on the first attempt, their chances of obtaining a unit will be slimmer in future. Affected buyers may use the increased CPF housing grants to apply for a 4-room or smaller resale flat should they fail to get an HDB BTO flat on the first attempt.
2. Impact of setting a new FT(PMC) priority category and giving more ballot chances for FT(PMC) applicants
The impact of giving more ballot chances to FT(PMC) may not be significant as the proportion of such applicants is small. Non-eligible applicants may not be greatly disadvantaged since the total pool of applicants may be reduced. For instance, some buyers will be diverted to the resale market as the CPF housing grants for first-timers will be increased. The tightened rules for the non-selection of flats will also cause some potential buyers to drop out of the application process.
3. More community care apartments in Bedok
We expect demand to remain healthy for this third batch of apartment flats for seniors. Increasing the supply of such flats will meet the housing needs of our ageing population. Bedok is a popular location with ample amenities, and the area will likely be accessible for seniors. The first two batches of flats saw strong demand. For instance, the first batch of 169 flats was launched in February 2021 at Harmony@Bukit Batok and was well-received, with a subscription rate of 4.2 (https://services2.hdb.gov.sg/webapp/BP13BTOENQWeb/BP13J011BTOFeb21.jsp). The second batch of community care flats in Queenstown saw 383 applicants for 245 flats with an application rate of 1.6. https://services2.hdb.gov.sg/webapp/BP13BTOENQWeb/BP13J011BTONov22.jsp
4. More housing options for low-income singles in public rental housing
This is a good initiative to help eligible singles obtain temporary housing at an affordable price. Some low-income singles may not have the financial means to rent elsewhere since public and private rents have been rising, and rents are likely to hold firm for a while.