Allowing singles to buy new flats will help cool resale market: analysts

SINGAPORE: Plans are under way to allow singles to buy new flats directly from the HDB in the future.

Some analysts estimate that if the new policy is implemented, half the number of singles buyers in the resale flat market will move to Build—To—Order (BTO) flats.

Analysts say this will cool the resale flat market, but only in two or three years’ time when the BTO flats are completed.

Latest data from local property firm PropNex show that singles form some 16 per cent of buyers in the HDB resale market.

National Development Minister Khaw Boon Wan said the additional demand from the singles is unlikely to be small. One option is to launch more BTO flats next year, he said.

Couples who cancel their applications will also help boost the supply of flats.

PropNex Realty’s reginal director, David Poh, said: "It’s quite common that couples who buy (BTO flats) will not collect the keys, because they regret, they don’t like the location or they have even separated before they collect the keys. All these leftover BTO flats, the government can introduce them into the market immediately. At that time, you’ll really see the influence on resale prices."

— CNA/ir