Follow us on Telegram for the latest updates: https://t.me/mothershipsg

[Updated on Saturday, 28 Jan at 9.15pm: The details on Keat Hong Verge was edited for accuracy.]

Over the past two years, the Housing and Development Board (HDB) has successfully delivered about 55 per cent of the delayed Build-To-Order (BTO) projects, or a total of 52 projects, to homebuyers, in a statement released today (Jan. 28).

As a result, the BTO project completion rate has now exceeded pre-Covid levels and is the highest for HDB in the past five years.

The proportion of BTO projects delayed beyond the estimated completion date in ongoing projects has also been reduced from more than 90 per cent in 2021 to about 40 per cent in January 2023.

Projection completion rate highest in 5 years

Tan Meng Dui, HDB's Chief Executive Officer, said that HDB has made steady progress in delivering delayed BTO projects by working closely with its construction partners and other government agencies.

HDB's project completion rate of 52 projects over the last two years "is in fact the highest for HDB in the past 5 years", Tan noted.

Tan also said that HDB would continue to minimise delays of BTO projects, without compromising safety and quality, over the next two years.

According to HDB, many BTO projects were delayed due to the pandemic.

In 2020, the progress of construction projects was significantly impacted by the two-month Circuit Breaker, the subsequent slow resumption of construction activities, and stringent safe management measures that were put in place at worksites.

In 2021, the situation was further exacerbated by Malaysia's Movement Control Order and lockdowns in other countries, which disrupted the flow of key supplies and materials needed for the projects, and the tightening of border controls for workers from South Asia.

Even till about a year ago, there was still a shortage of 25 per cent of the workforce required for the construction of BTO projects.

Waiting time for projects varies

In the press release, HDB went into detail to explain the entire process of conceptualising and building new housing projects.

HDB explained that the duration for each of these phases may vary across projects, depending on the site context and the complexity of the project.

1. 1. Planning: About one to 1.5 years before HDB designs a BTO project, it would work with agencies to finalise the requirements of the development, before seeking approval from the Urban Redevelopment Authority.
   2. Design: HDB would require around 2 years to procure consultancy services, design development, and calling and awarding the building tender. During this time, HDB would simultaneously carry out land preparatory works.
   3. Construction: More time would be needed for more complex projects, especially those that are located at infill or brownfield sites in built-up areas.

Projects with shorter waiting time offered

The good news is HDB has been offering some BTO flats with a waiting time of less than three years since 2018.

To date, HDB has offered close to 11,000 BTO flats with shorter waiting times, and about 7,200 were launched between 2020 and 2022, despite the disruptions caused by Covid. 

One such example is Keat Hong Verge at Choa Chu Kang, which consists of three residential blocks with 22 storeys.

The project was launched in a sales exercise in August 2020. 

The delivery of the first block has commenced, while the remaining two blocks are likely to be completed by March 2023.

This means that Keat Hong Verge will have one of the shortest BTO waiting time of 2.1 years.

It will also be the first BTO project to be completed without any delays since the pandemic.  

Continue delivering homes while ensuring affordability

In 2022, HDB launched a total of 23,184 BTO flats for sale, exceeding its commitment of launching 23,000 BTO flats for the year.

HDB added that it is prepared to launch up to 100,000 flats from 2021 to 2025.

Top image via Unsplash