Keeping our Build-To-Order (BTO) programme 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 sector, which have affected both private and public sector projects.

The Housing Development Board (HDB) has supported their contractors to get the BTO projects back on track by: 

• Helping contractors to source for and bring in workers;

• Sharing contractors’ increased manpower and material costs, such as steel and concrete;

• Building up stockpiles of materials to cope with supply disruptions and price changes; and

• Providing advance payments and progress payments more frequently, to help contractors ease their cashflow. 

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

2. What is HDB doing to support flat buyers affected by the BTO delays? 

HDB has been providing regular updates to affected flat buyers on the progress and revised completion dates. 

Going forward, about three months before the completion of their BTO flat, flat buyers will be informed on the likely month of completion instead of just the quarter. This will provide greater certainty for flat buyers to make necessary preparations. 

For flat buyers whose flats have been delayed beyond their Delivery Possession Date (DPD), HDB will reimburse them the maximum sum in a one-off payment, without requiring submission of claims. 

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

3. Are further delays to BTO projects expected?

HDB’s priority is to minimise delays and deliver new homes to our flat buyers as soon as possible, while maintaining the quality of BTO flats. 

Delays for most BTO projects have remained between 6 to 12 months. HDB will launch up to 23,000 new homes flats yearly in 2022 and 2023.  This will reduce the median waiting time for the new BTO projects to between 4 and 4.5 years. 

While the construction sector is gradually turning the corner as the COVID-19 situation improves, many uncertainties remain such as disruptions to supply chains disruptions due to geo-political tensions and re-emergence of COVID-19 in other parts of the world. The Government will monitor these developments and adapt our response, where necessary.

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