Our move to ramp up supply to stabilise the housing market, and help newlywed first-timers get their first HDB home, is making steady progress.
By the end of this year, we would have launched 50,000 flats over 2011 and 2012. The increased supply is clearly helping our flat buyers, and having an impact on application rates. The application rates for the current BTO launch, which closes today, affirm this observation.
First-timer application rates remain below 2.0. This means that almost all first-timers will get the chance to select a flat when they apply for one, especially in non-mature estates.
Second-timer application rates, which used to exceed 25, have come down significantly. This means there is more certainty for second-timers to get a new flat.
These are good outcomes which we intend to sustain. We will launch another 8,000 new flats by the end of this year, and an additional 3,000 balance flats in September. So, there will be another 11,000 units for people to choose from over the next two launches.
Next year, we will keep up this momentum to help more Singaporeans own their flats. While the plan is still being finalised, I have told HDB to build at least 20,000 new flats next year.
I expect this sustained supply to firmly stabilise the housing market. This will give Singaporeans many options as they make their flat purchases prudently and wisely.
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