Strict rules for flat applications allow fairness of public housing: analysts

HDB imposed stricter measures to those who fail to show up for flat appointments.

The HDB imposed new rules for non-selection of BTO flats, which will benefit those with urgent housing needs, said property analysts.

In a statement, One Global Group said the HDB recently introduced a new first-time category for home buyers, which will give them more options to purchase a home. But the government also implemented tightened regulations such as for individuals who consistently fail to show up in the flat selections or decline to book a flat despite being offered one.

This will ensure “fairness” when allocating public housing, said One Global Group.

More for resale market

For OrangeTee, this rule will make buyers more picky and may hold back applications until they are prepared to settle down. It will also reduce the number of BTO applicants. 

To this effect, the penalty for non-selection may cause more buyers to turn to the resale market.

It also commented that the increased ballot chances to FT (PMC) applicants may not have significant impact as the proportion of applicants is small.

PropertyGuru said homebuyers who have an extra ballot but are not selective and prioritise their urgent needs will have a better chance of getting a home.

But for those who want homes that meet their needs may go to the resale HDB market. 

“That said, the market will likely recalibrate and stabilise by next year after some volatility as home seekers grow accustomed to the new regulations,” said PropertyGuru.

Seniors and low-income singles

The new announcement also disclosed the government’s launch of community care apartments in Bedok, with 2022 CCA units and other flat types, that may benefit seniors.

PropNex Realty said the measures are targeted and zeroing in on specific segments of the population with immediate housing needs.

OrangeTee said the government also provided more housing options for low-income singles in public rental housing, which is a good step to help them obtain affordable temporary housing.

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