At a recent wedding event, I was seated beside a young gentleman talking about him trying for BTO for more than 5 times but still unable to get his choice unit.
Upon knowing that I’m in the real estate field, he began asking a lot of questions and questioning the price movements of property market.
He became very curious about what he should do and why the property market behaves as such.
Firstly, let’s address the main reason he’s unable to get his bto. It is because he is only aiming the prime estates which are very high in terms of competition in the first place.
The BTO only comes every quarterly and so if he misses the current one, he & his girlfriend have no choice but to wait another 3 months for the next BTO opening.
They are at their late 20s, which I think that it’s still ok for them to keep trying.
Let’s say that they have finally manage to get their BTO, it will probably take 3-4 years for the building to be completed.
And then subsequently, another 5 more years for the minimum occupation period MOP, before they are able to sell away their HDB.
And of course 10 more years, if they choose to go for the Prime Location Housing (PLH) HDBs.
Now, the main purpose of getting BTO is taking advantage of the lower priced option that every Singaporean has.
Given their current financial situation, they have to settle for a more far off location if they want to go for a resale HDB.
Both of their parents are living in prime areas. It makes no sense for them to do that.
It’s their aim to stay near parents so that they have the social support needed when they start to have children of their own.
The next question he asks is that how long more should he try before he should give up. To which I have no clear answer to it.
Because at the end of the day, it’s all about balloting luck. Some people are successful at their first try and are able to get what they want. Probably they have done a lot of good deeds in their previous lives. Some can’t even get a queue number and just have to keep trying until they get it or give up.
The housing issue is a thorny one with no clear answer, the Gov cannot rush to flood the market by releasing too many housing sites out to fulfill the demand, as that will cause a sudden surge of builders’ competition for labour and materials resources.
And of course, the resale hdb market will be severely affected if there is a sudden oversupply in the market.
Not forgetting, when this large batch of HDB MOP in the future, the same thing is going to be happening with oversupply issue.
Right now, the same kind of advice I’m sharing with him and more potential readers out there is that, if you want to quickly settle and get a BTO, you have to accept going for non-mature estates where competition is lower.
If your intention is to reap the most profits out of the BTO, then you may have to consider, at what cost?
Delaying your family plans, being stuck with staying with your parents?
There are more factors for housing to think about and strike a good balance.
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