Nearly 1,000 BTO bookers walked away last year
Last year, close to 900 folks who had booked Singapore’s Build‑To‑Order (BTO) flats pulled the plug. Reasons varied: budgets clamped in, second thoughts on the move, or the urge to snag a resale unit instead.
Breakdown of the cancellations
- 38% – four‑room flats (the middle‑priced sweet spot)
- 25% – two‑room flexi or similar lean‑and‑tight options
- 22% – five‑room loafers (big family haunts)
- 15% – three‑room dwellings (the “just‑right” size)
What the Ministry’s numbers told Parliament
National Development Minister Lawrence Wong dominated the session, grilling Labour MP Mr Ang Wei Neng from Jurong GRC. “People, if you back out before the lease is signed, you lose the booking fee—ranging from $500 to $2,000 depending on the flat—” he quipped. “Slip in after the lease? You’ll shed 5 % of the flat’s price. And you’ll have to sit out for a year before hopping back into a subsidised flat.”
Mrs Denise Phua, answering a question from Jalan Besar GRC, asked how HDB supports owners struggling to sell a flat under the Ethnic Integration Policy. Wong replied that giving extra time to finish the sale of the old flat often does the trick. “If the deadline still isn’t nice enough, you can reach out to HDB for help,” he said.
Stories of flexibility
On a “case‑by‑case” basis, HDB has rolled the dice and waived cancellation penalties for those with valid reasons. Those abandoned flats then go back on the market via “sale‑of‑balance” exercises.
Money matters in BTO projects
When the government awarded design rights to new BTO projects in 2016 and 2017, land occupied about 60 % of the total cost. That slice was pretty consistent across three‑, four‑ and five‑room projects. The rest? Construction, consulting, and financing—each project’s cost mix depends on its design, market vibe, and a bit of luck.
“HDB’s goal is to keep public housing affordable,” Wong reminded. “So the price you see on the market won’t, and shouldn’t, fully cover the entire development cost.”
Source: The Straits Times (reproduction permission required)
