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The Housing Development Board (HDB) has launched 9,655 flats for sale under its November 2022 Build-to-Order (BTO) exercise.

Largest BTO launch yet

According to a press release by HDB, it is the largest BTO offering ever in a single launch.

The flats are spread across 10 projects in both mature and non-mature estates, in Kallang, Whampoa, Queenstown, Bukit Batok, Tengah, and Yishun, with selling prices ranging from at least S$100,000 for a three-room flat in Yishun to at least S$506,000 for a four-room flat in Queenstown, with grants.

Around 60 per cent -- 5,861 units -- of the flats offered are in non-mature estates.

HDB added that along with 1,071 units offered under the Sale of Balance Flats (SBF) exercise, a total of 10,726 new flats are being offered under this sales exercise.

For the flats offered under the SBF exercise, HDB said they will be at various locations.

About 31 per cent of the flats have been completed, while the rest are in various stages of construction.

Median waiting time is 4.5 years for BTO flats

The median waiting time for the BTO flats launched under this exercise is about 4.5 years.

The shortest waiting time for these flats are for those located at Garden Waterfront I and II at Tengah.

Applicants may make their flat applications from Nov. 23 to Dec. 1.

The statutory board pointed out that the the application period for this exercise has been extended from the typical seven days to nine days to allow prospective buyers more time to consider the range of flats of available.

HDB further said as the applications for these flats are shortlisted using a computer ballot and not on a first-come-first served basis, similar to earlier sales, applicants do not need to rush during this period.

What are the prices of the flats launched?

According to HDB, the BTO flats are priced "considerably" lower than the transacted prices of comparable resale flats, with significant subsidies.

Within the non-mature towns of Bukit Batok, Tengah and Yishun, all four-room flats offered in this sales exercise are priced below S$400,000.

In addition, after including the Enhanced CPF Housing Grant (EHG) of up to S$80,000, eligible first-timer families can purchase a three-room flat or a four-room flat in Yishun from S$100,000 or S$188,000, respectively.

As for flats offered under the SBF exercise, the prices are as follows:

How much of the EHG is a first-time family eligible for?

With regard to the EHG, HDB gave the following examples of how much a first-time family might receive, depending on their income:

• An eligible first-timer family earning S$3,000 (between 10th and 20th income percentile

  of resident employed households) would enjoy an EHG of S$65,000.

• For a family earning S$5,000 (slightly below 30th income percentile of resident employed households), they will enjoy an EHG of $45,000.
• As for a family earning S$7,000 (slightly below 40th income percentile of resident employed households) will receive an EHG of S$25,000.

In stressing that HDB is committed to keeping flats affordable, the statutory board pointed out that in the first half of 2022, for buyers who collected the keys to their new flats, 90 per cent in non-mature estates and over 80 per cent in mature estates had a Mortgage Servicing Ratio (MSR) of 25 per cent or lower for their HDB loans.

"This means that these flat buyers can service their HDB loans using their monthly CPF contributions, with little or no cash outlay," HDB said.

23,184 BTO flats have been launched for 2022 so far

HDB further highlighted that together with the November exercise, a total of 23,184 BTO flats have been launched for sale in 2022.

With the 3,023 SBF and 911 flats offered via open booking, this means that HDB has offered a total of 27,118 flats for 2022.

The press release added that another 4,400 BTO flats will be offered in February 2023, at towns and estates such as Jurong West, Tengah, Kallang Whampoa, and Queenstown.

This will be followed by another 3,800 to 4,800 flats in locations such as Tengah, Bedok, Kallang Whampoa, Serangoon, and Queenstown, in May 2023.

The number for this launch will be subject to review as more project details are firmed up closer to the launch date.

Top photo via Desmond Lee/Facebook