Number of applications exceed available units for sale of balance flats by HDB
October 2nd, 2009 | 
Author: From our Correspondent with tip-off from a reader, Nazeem
Following the announcement of a new scheme by National Development Minister Mah Bow Tan called Sale of Balance Flats (SBF) to simplify the flat application process, and to provide buyers with a wider choice of flats across a range of locations in one exercise, HDB had launched online system to submit an application under the October 2009 Sale of Balance Flats . (Source: HDB)
The exercise was launched slightly over 24 hours ago, and already the number of applications exceeds the number of available units by 2:1:
[Source: HDB Infoweb]
As we can see from the above figures, the number of applications for HDB flats far outstripped the number of balanced units left, except for some far-flung estates like Jurong and Kallang/Whampoa where the astronomical prices must have put buyers off.
This is a clear indication that the current supply of flats is insufficient to meet demands even at such high prices.
In an earlier report by ERA, it was revealed that 40 per cent of the buyers are permanent residents. Did HDB take into account the artificial increase in Singapore’s population in the last few years?
Increasing the number of flats and ECs built now is too late to resolve the housing crisis as they will take a few years to construct and sold on the market.
Public housing is a basic necessity in Singapore. No matter how expensive it has become, Singaporeans (and PRs) will have no choice other than to buy flats from HDB or in the resale market.
More than 90,000 foreigners become PRs last year and HDB will only ramp up its supply of build-to-order (BTO) flats from 8,000 to 9,000 units this year.
One does not need to be a millionaire minister to realize that prices will keep going up as a result of limited supply of flats in the face of a growing population.
Of course, opening the floodgates will be a boom to both the government and big businesses since foreigners will add to the GDP growth, (a variable component of ministers’ salaries are pegged to it), but they also contribute to rampant inflation of public housing prices at the same time which is having a detrimental impact on locals now and in the future.
From Nazeem, an increasingly disillusioned Singaporean:
“This is proof that HDB (or the government) screwed up when they failed to take into account the artificial rise in the population numbers. Despite being paid world-class salaries, how is it that they did not see this coming?
And it is frustrating that even with overwhelming evidence to the contrary, our “higher-mortal” leaders continue to insist that bringing even more FTs into Singapore is a good thing.
And here’s the kicker – I’m a 30 year old Singaporean, who has served my NS (just like my father before me) and gainfully employed. I would like to fulfill my filial duties and provide my aged parents with a roof over their heads. BUT, I am prevented from purchasing an easily affordable flat for myself and my parents because of HDB’s bureaucratic bullshit!
With ERA’s recent report that 40% of all resale flats are bought by foreigners, it leaves me feeling more and more like a second-class citizen in my own country.”
Related articles:
>> HDB to increase supply of flats
>> Mah: don’t compare with prices in the past
>> ERA: 40 per cent of HDB flat buyers are PRs
Posted in Editorial
and it’s only the second day of application. how many times oversubscribed would it be by the end of the application period?!
Like or Dislike:
0 
0
Too little, too late
more frustrations!!!
Like or Dislike:
0 
0
HDB huat liao ! By jacking up the resale price, the new flat price is also expensive as it is pegged against If you consider the reduced flat size, psf is very expensive. House seekers have no choice but to buy expensive new flat instead of buying very expensive resale flat. PR and new citizen are government new weapon to vacuum our pocket!!!!
Like or Dislike:
0 
0
I am one of the applicants. In the past, it is worse. Every estate was lumped into the sales and so you seen applicants like 10,000 or 4,000 for just 200 over units.
Unfortunately, many of these units are actually very old units, repossessed by HDB for whatever reasons (usually nothing good, like former owner cannot pay or something and has to sell back to HDB)
Most people really only want the newer flats (those built after 2005 or at least after 2000s) and so the people applied for a very small number of choice units (considering these are actually LEFTOVERS, the real choice units are all taken up)
Think of it as a bargain bin sale and people rushed to grab the left over “cream”.
After that, most people who applied whose queue number is around the back won’t want the real leftovers. And then HDB will whine that the application is over inflated, not realising that those behind the queues don’t really want the leftovers. Some flats are actually 20 years old, who would want these as their “new” flat?
Anyway, this is the second day, wait till the last day and you see a lot of flats are oversubscribed.
By the way, each application cost S$10, so 10,000 applicants will earn HDB a cool S$100,000, for nothing.
Like or Dislike:
0 
0
One more thing is that a lot of demand is in mature estate but HDB die die want to build flats in new estates. These new estates are very inconvenient especially for couples who like to stay near their parents.
That is why a BTO in, say Bukit Merah, can attract 10,000 applicants just for 200 over units and their take up rate is almost 100%. I know because my queue number is aroudn 300 and by the time it reaches me, only a few units are left. And due to the stupid racial quota, these few units can only be taken up by Malay/Others.
Ironically, a few years later, they could not sell and then offer these units up to any race (I guess money talks)
Even a BTO in pungol area has a high application but the take up rate is about 70%, which is not bad but HDB make it like the rest did not want it and the “reject-rate” is high. From this psuedo-data, they conclude the demand is not high.
They did not realise not many people want to stay in fringe town area where it is so far away from city area and even if they stay in these new estates, they also don’t want lousy units (most prefer high units). It is no wonder that the first 70% of units were taken and the remaining were not taken by subsequent queue numbers.
I mean, if your queue number is something like 8000 out of 10,000, would you bother?
HDB assumed all their flat units are equal but it is not. The Kallang flat units, while located near central and next to MRT, the units are all inward facing. It gives a claustrophobic feeling. Who wants to live in a flat and feel like you are trapped in some ancient castle wall (and pay exhorbitant price at that)?
That is why many people eschew Kallang Central flats. Most applicant would probably go for the River view flats. Rest assure the numbers will shoot up near the end of the application period because it is the only REAL new flats to be offered and people probably want to study first before applying.
Like or Dislike:
0 
0
The prices for the balanced unit are priced rediculously high
For example the unit at Redhill Rise, A friend of mine bought it at 333k for a 30 storey 4 room flat, look at the price of the 4 room at level 8. it going for 453k.
Like or Dislike:
0 
0
Hmmm… I have a question… how come the available available units for AMK and Bukit Merah are so much more than the rest? Are these flats purposely withheld from being sold until the price has increased significantly, as mature estate prices tend to rise much more faster?
Like or Dislike:
0 
0
Sian, you are right. I believe those flats were held back and waited for prices to rise before releasing to market again. These are very old flats and the cost of building them was very low (less than $80k that time). Now they are sold at subsidised market prices (hundreds of thousand), it easy to know how much HDB can profiteer from it. Gone were the days of providing a roof over the citizens head.. its now only providing reasons to justify $$$ for those blood suckers, who only knows how to bully singaporeans.
Like or Dislike:
0 
0
CASHING-IN like they allow SINKgaPOOReans To GET RICH 20+ years later with inflationary contra… BUT HDB NO NEED to wait so long as they control everything!!! People in Bukit Merah then HAPPY and PAPpy… then will surely vote for who???… Or OSO Vally papy happy gfet day OFF on Voting Day if DON’T have to vote!!! Win-Win BOThways!!! Party & PaPty TOO!!!
Like or Dislike:
0 
0
from the list, Choa Chu Kang only has 3 units available for sale but there are at least 105 applications for it.
Like or Dislike:
0 
0
is it HDB should refund for the unsuccess applicants since supply less than demand?what’s the actions should take from HDB to overcome this method?
Like or Dislike:
0 
0