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Keeping our Build-To-Order program on track

1. What is the government doing to ensure our BTO projects are on track?

The BTO delays were due to the impact of COVID-19 related disruptions on the construction industry, which affected both private and public sector projects.

The Housing Development Board (HDB) has helped its contractors get BTO projects back on track by:

  • Help entrepreneurs find and bring in workers;
  • Sharing increased contractor labor and material costs, such as steel and concrete;
  • Build up stocks of materials to deal with supply shortages and price variations; and
  • Offer prepayments and installment payments more frequently, to help entrepreneurs relieve their cash flow.

Consequently, the The number of BTO projects delayed by six months or more stands at 58 projects, or less than 60% of all projects, in April 2022. This is a decrease from 74 projects, or more than 80 % of all projects, at the same time last year.

2. What is HDB doing to support apartment buyers impacted by BTO delays?

HDB provided regular updates to affected apartment buyers on progress and revised completion dates.

In the future, approximately three months before the completion of their BTO apartment, apartment buyers will be informed of the probable month of completion instead of only the quarter. This will provide greater certainty for apartment buyers to make the necessary preparations.

For apartment buyers whose apartments have been delayed beyond their Possession Date (DPD), HDB will reimburse them the maximum amount in a single payment, without the need to submit a claim.

To better support those in need of interim housing, HDB has increased the number of Parenthood Interim Housing Units (PPHS) for rent to 1,000 units and will add another 800 units by 2023.

3. Are additional delays expected for BTO projects?

HDB’s priority is to minimize delays and deliver new apartments to our buyers as soon as possible while maintaining the quality of BTO apartments.

Delays for most BTO projects remained between 6 to 12 months. HDB will be launched until 23,000 new apartments annually in 2022 and 2023. This will reduce the median wait time for new BTO projects to between 4 and 4.5 years old.

While the construction sector is gradually taking a turn as the COVID-19 situation improves, many uncertainties remain, such as disruptions to supply chains due to geopolitical tensions and the re-emergence of COVID-19 in other parts of the world. The government will monitor these developments and adapt our response, if necessary.

Learn more here.

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