Higher BTO demand expected after income ceiling raised, but supply can keep pace: Chee Hong Tat

BTO APPLICATION RATES DOWN SHARPLY

Mr Chee said the government in early 2025 caught up with all housing construction delays caused by the COVID-19 pandemic.

The increased supply of new flats has helped reduce waiting times and application rates among first-timer families, he said.

In 2020, there were almost seven first-timer family applicants for each 3-room or larger BTO flat. The application rate has since fallen to about 1.3.

“So, (the application rates) have come down significantly. This means higher chance of a successful ballot with shorter waiting time,” Mr Chee said.

“That’s why we see more people now shifting to BTO markets, and the demand for resale flats has also then sort of stabilised.”

Mr Chee added that the government would continue to maintain a robust supply of new flats across Singapore, including in mature estates where people may want to live near their parents.

But finding land for housing will become increasingly challenging given Singapore’s limited land area, he noted.

After available sites, including brownfield sites, are exhausted, the government may have to consider areas with greenery or heritage value, he added.

“The approach we want to take is to try and preserve as much of the greenery and heritage as we can after doing the impact assessment,” said Mr Chee.

“But we also want to make sure that we are able to develop so that we can meet the housing needs and aspirations of Singaporeans.”