In simple terms, only 9,848 people applied for 6,800 new HDB flats in October 2023. That means, on average, only about 1.4 people wanted each flat. This is one of the lowest numbers we’ve seen recently!
But why? Some experts think it’s because of new rules about choosing these flats. Before, people could apply even if they were not sure about buying. But now, if they apply and don’t choose a flat, they get a lower chance of getting one next time.
Ismail Gafoor from PropNex Realty mentioned that the last time the numbers were this low was in November 2017. Between February 2021 and May 2023, more people (between 2.5 to 8.1 times the flats available) wanted these flats.
To give a comparison, in February 2023, over 16,000 people applied for 4,428 flats. And in May 2023, more than 20,000 people wanted 5,495 flats.
Christine Sun from OrangeTee & Tie thinks that because of these new rules, people who aren’t ready to buy, maybe like young couples still deciding, won’t apply.
From August 2023, anyone who applies for the first time and then doesn’t choose a flat will get fewer chances to get one later. About 85% of these flats are saved just for first-timers. These new rules want to help people get homes faster.
This October, the new flats were in places like Choa Chu Kang, Kallang/Whampoa, Queenstown, and Tengah. If you were applying for the first time and wanted a bigger flat in Rail Green I and II @ CCK or Plantation Edge I and II in Tengah, you had a good chance.
But, it was different for those applying a second time. Many more wanted the five-room flats in Tengah and Choa Chu Kang.
Ismail Gafoor mentioned that the Tengah flats were popular because they would be ready sooner, in about 3 to 3.33 years.
Nicholas Mak from Mogul.sg thinks another reason for fewer applications is a new letter (HDB Flat Eligibility or HFE Letter) that people need before applying. It takes a few days to get this letter; some might not have known about it.
Some people might apply in December instead because they’re waiting for new flats in places like Bishan in Sin Ming and Bukit Merah.
FAQ
How many people applied for the HDB flats in October 2023?
9,848 people applied for the 6,800 flats available.
How does this application rate compare to previous years?
The application rate for October 2023 was 1.4 applicants per flat, which is one of the lowest in recent times.
Why did fewer people apply for HDB flats in October 2023?
Experts believe the decline is due to new rules that penalize applicants who don’t select a flat after applying.
When was the last time the application rates were this low?
The last time we saw similar numbers was in November 2017.
What happens to first-timers who apply but don’t choose a flat now?
From August 2023, first-timers who don’t pick a flat will get fewer chances to select one in future exercises for a year.
Which locations were the new flats in for October 2023?
The new flats were in Choa Chu Kang, Kallang/Whampoa, Queenstown, and Tengah.
What new HDB Flat Eligibility (HFE) Letter have I heard about?
It’s a new requirement for applicants starting in October 2023. Before applying, they need this letter, which takes a few days to prepare.
Are there any upcoming flats that people are looking forward to?
Many are awaiting the new flats in locations like Bishan in Sin Ming and Bukit Merah, which are expected to launch in December.