http://www.businesstimes.com.sg/real...unched-in-2015

25% fewer BTO flats to be launched in 2015

By Kelly Tay

[email protected]@KellyTayBT

21 Oct


THE government will launch 25 per cent fewer Build-to-Order (BTO) flats next year, said National Development Minister Khaw Boon Wan in a blog post on Monday evening.

This would mark a further slowdown in pace - the BTO programme has already been reduced by 10 per cent to 22,400 units this year - that would avoid an oversupply.

Mr Khaw said: "For three years, 2011, 2012 and 2013, we launched more than 25,000 BTO flats per year, for a total of 77,000 flats. This is a record construction programme, but necessary to meet pent-up demand especially by first-timers. The effort has been effective in clearing their waiting queue.
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"Now that the housing market is stabilising, we have started to change gear," he said, adding that the decision to reduce next year's housing supply came after a study of recent BTO application rates.

In 2015, the government will launch BTO exercises once a quarter; this compares to the six times a year in the past few years.

But the BTO launch size will be maintained at 4,000 units - translating into a BTO programme of about 16,000 units next year.

"This should be sufficient to meet demand, without causing a glut in the public housing market," said Mr Khaw.

He added that in future BTO exercises, "a certain proportion of flat supply" will be set aside for families who want to live close to one another.