Demand outstripped demand: Latest BTO flats over-subscribed
November 1st, 2009 | 
Author: From our Correspondent
In another sign that HDB is not building sufficient flats to meet public demand, two BTO projects are completely snapped up by home buyers within a week of its launch.
Fernvale Palms was more popular than Boon Lay Meadow, with the 495 flats offered under the project more than four times subscribed. Boon Lay Meadow, with 705 flats offered, was about three times subscribed. Some 2,300 people applied for the units.
In an earlier launch of balanced flats, there were over 20,000 applications for some 2,000 old flats distributed in different estates of the island with those in the prime districts fetching prices comparable to resale flats.
The prices of HDB flats has skyrocketed in recent weeks fueled in part by the rising number of PRs in the resale market which helps to keep prices up.
According to a report released by real estate agency ERA, 40 per cent of the buyers of resale flats are PRs.
Despite the rising prices, HDB is adamant that public housing remains “affordable” in Singapore.
National Development Minister Mah Bow Tan blames Singaporeans who complained of not getting a home of their choice after several tries as being too “fussy”.
The BTO flats will only be completed in three years’ time and young couples will have to stay with their parents or rent a flat in the meantime before they receive the keys to their homes.
For those who are unable to wait that long, they will have no choice but to compete with the PRs for a flat in the resale market.
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3 Responses to “Demand outstripped demand: Latest BTO flats over-subscribed”
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Demand outstrpped supply, not demand.
For 4 room flats, it is more than 10 times oversubscribed in Boon Lay Meadow, more than in Fervale Palms.
The latter part of the article is just cut and paste from previous postings.
This is just another propaganda from the state media. If they cannot convince people, just confuse them.
The BTO (Build-To-Order) for HDB was implemented to ensure that supply can never be more than demand. Literally, it means build the flat only upon confirmation of order.
HDB is the sole supplier for HDB flats — in other words, it acts as a monopoly. As any A-level’s economics student will know, a monopoly dictates prices by controlling supply.
Cutting the supply is one way of maximising profits for a monopoly.
Taken the above 2 points together, the article is wrongly attributing the situation as being due to high demand. It never once mentioned the supply side, which is controlled by HDB.
This clearly shows that MBT is not doing his job despite being paid an exorbitant salary !!!!