BTO stands for build to order flats, which is a responsive system designed to ensure flexibility and build time against the purchase of HDB apartment buyers. How does this work?

HDB announces the location and prices of the new HDB flats. If you are interested in purchasing a unit because of location, you must submit your purchase interest or purchase request within the stated application period. Be sure to be on time because the selection is done through a computer nerd. The computerized ticket organizes the positions of the queues of the applicants in the reservation of the flats.

When the reservation starts, you will receive an invitation from the HDB to reserve a flat. When the reservation period ends, the demand for the flats will be evaluated and the decision to build or abandon the project will be evaluated. If the demand is low, there would be no sales contract. If the demand is high, bids for the construction would be collected. The key to the apartment is delivered to the applicant once the project is finished.

May 2015 sales from immature estate flats distribution increased by up to 50% from two-bedroom flats. In 2014, the government built some 22,455 BTO apartments. By 2015, the government plans to serve only first and second families and also those who want to live with or near their parents.

The government has clearly expressed its desire to reduce production until the backlog of demand is eliminated. There would be fewer new larger HDB flats. To meet the demand for singles, the construction would prioritize the construction of studio apartments and 2 rooms.

Eligible first-time families can enjoy a housing grant of up to $60,000. The grant would be $40,000 AHG and $20,000 SHG. Considering that singles over the age of 35 can own HDB apartments, the government needs to assess the demand for BTOs from studio layouts to large 5-bedroom units.

Last month (May 2015), the government offered around 4044 BTO flats and 5837 balance flats. The BTO apartment locations are in the immature cities of Sembawang and Punggol. The new floors have been quoted with a subsidy due to the design of the project and the existing market conditions.

However, there is a small problem. Second-time travelers must dispose of their HDB flats within six months of collecting their keys. Therefore, the resale of its existing apartments was lower. Resale prices began to fall in 2014 due to credit crunch and many buyers prefer newer BTOs. Also, second-floor purchases are no longer as attractive to buyers.