900 flat buyers cancelled BTO bookings in 2018: Lawrence Wong

900 flat buyers cancelled BTO bookings in 2018: Lawrence Wong

SINGAPORE: About 900 HDB flat buyers cancelled their BTO flat bookings last year said National Development Minister Lawrence Wong in Parliament on Tuesday (Jan 15).

Responding to a question from Member of Parliament Ang Wei Neng, Mr Wong revealed that 25 per cent of these flats were 2-room Flexi or similar flats, 15 per cent were 3-room flats, 38 per cent were 4-room flats and 22 per cent were 5-room flats.

He added that the main reasons given for cancelling the BTO flat bookings were either a change in housing plans, which could have meant that buyers wished to remain in their existing flat, or buy a resale flat, or a change in financial circumstances which affected the flat purchase.

READ: HDB to launch fewer new flats next year; 2,000 homes in Tengah on offer

Depending on the flat type, buyers who cancel their flat booking before signing the Agreement for Lease forfeit the booking fee, which ranges from S$500 to S$2,000, added Mr Wong.

Should they cancel the booking after signing the Agreement for Lease, buyers have to pay a forfeit of five per cent of the flat price. They would also need to wait a year before they may apply for another subsidised flat. 

"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." said Mr Wong. "Nevertheless, where there are valid grounds, HDB has waived the forfeiture on a case-by-case basis."

Source: CNA/mt(ms)