Is merging the two launches into one mega launch in November a good idea?

The government plans to launch 12,000 new flats in one go.

Minister Khaw Boon Wan announced in his blog yesterday about the upcoming bumper crop of 12,000 flats in November. This comes as the Ministry of National Development decided to delay the September launch by a few weeks to give time for the implementation of three major housing policies.

Here's what Minister Khaw said in his blog:

We have originally scheduled two BTO launches for the rest of this year, in September and November. As it turned out, we were able to finalise three major housing policies which would further enhance affordability and build flexibility into our housing options: a new 2R Flexi Scheme, an increase in the income ceiling, and enhancements to the Special CPF Housing Grant (SHG). The new policies will benefit many Singaporeans, including families, singles, and seniors.

As implementation of any new policy does require some time, we therefore decided to delay the September BTO launch by a few weeks, so that these initiatives can benefit as many Singaporeans as possible starting from the very next BTO launch. Looking at the timing of the November BTO launch, we decided that a practical way is to merge the two launches into one mega launch in November.

This will mean a bumper crop of about 7,000 BTO flats in 6 HDB towns across the country: Bidadari, Bukit Batok, Choa Chu Kang, Hougang, Punggol Northshore and Sengkang. In addition, we are ready to market 5,000 balance flats in a concurrent Sale of Balance Flats (SBF) exercise. This means a combined launch of 12,000 new flats in one go. I am sure home buyers will be able to find a flat that will suit their budget and needs.

Propnex Realty CEO Ismail Gafoor comments that that merging of the two launches into one mega launch in November is a good idea as the overall supply of 25,000 flats for this year is not changed (even there is a bumper crop this November). He also believes that the same group and number of homebuyers will now have more choices and a higher chance of getting their dream home in the upcoming November launch.

“The bumper crop of BTO and Sale of Balance Flats in November is to meet the increase in the demand for such public housings especially after the implementation of the new 2R Flexi Scheme, an increase in the income ceiling, and enhancements to the Special CPF Housing Grant (SHG). I personally think that the impact on resale flats will be marginal, given the outlying towns of Bidadari, Bukit Batok, Choa Chu Kang, Hougang, Punggol Northshore and Sengkang in the upcoming launch, the buoyant HDB resale market with competitive prices and No or Low Cash Over Valuation, some homebuyers may still opt to purchase a resale flat,” said Gafoor.