Around 900 cancelled their BTO flat bookings in 2018
Around 900 buyers cancelled their Housing Board (HDB) Built-To-Order (BTO) flat bookings last year.
Reasons included wanting to remain in their existing flat or to buy a resale flat, or simply because they could not afford it.
Speaking in Parliament yesterday in response to questions raised by MPs, National Development Minister Lawrence Wong said that of the 900, 25 per cent had signed up for 2-room Flexi or similar flats, 15 per cent for 3-room flats, 38 per cent for 4-room flats and 22 per cent for 5-room flats.
He added: "Flat buyers who cancel their flat booking before signing the Agreement for Lease forfeit the booking fee, which ranges from $500 to $2,000, depending on flat type."
FORFEITURE
If the cancellation is made after the buyer had already signed the Agreement for Lease, the forfeiture is 5 per cent of the flat price.
They would also need to wait a year before they can apply for another subsidised flat.
Mr Wong said: "These measures are in place to ensure that buyers are serious when they apply for a flat, and do not deprive others who are in urgent need of buying a flat."
On a case-by-case basis, HDB has waived the forfeiture if the cancellation were on valid grounds, he said.
Ms Denise Phua (Moulmein-Kallang GRC) asked about the help HDB homeowners can get when they face difficulties in selling their flat because of the Ethnic Integration Policy.
Mr Wong said that "very often, we find that by giving more time to complete the transaction of the new flat and to sell the existing flat they are able to proceed".
Replying to a question by Mr Faisal Manap (Aljunied GRC), Mr Wong said that the land cost for HDB home projects awarded in 2016 and 2017 was about 60 per cent of total development cost.
Other costs included construction, consultancy fees, financing and other project-related costs.
Mr Wong said that HDB's total development cost cannot be fully covered from the sale price of flats because the pricing of new flats follows the objective of keeping public housing affordable.
In the last three years, HDB has incurred an average annual deficit of about $1.14 billion per year for its Home Ownership Programme, he added.
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