The Housing Board expects to offer between 10,000 and 12,000 flats every year over the next five years to meet growing demand, National Development Minister Mah Bow Tan said on 23 November.

That will serve as a guide for HDB’s build-to-order (BTO) Scheme, with the actual number made available depending on market conditions.

“What actually happens a few years down the road is unknown. Also, demand is not constant –it varies from year to year, depending on economic and other factors,” he told Parliament.

Taking questions from members on housing issues, he noted that HDB had responded swiftly to this year’s spike in demand, by raising its planned supply of 6,000 flats for the year to 13,500.

“If the take-up of BTO flats remains strong, we will continue to push out more flats under BTO next year-at least one project every month if necessary,” said Mr Mah.

While HDB does not have a policy of keeping vacant flats as a buffer, it nonetheless has a supply of flats that are ready for occupation, he disclosed.

He was responding to a query from MP Cynthia Phua (Aljunied GRC), who asked whether HDB could consider keeping a stock of ready flats for families who were in urgent need of a home.

“Although I have said that we do not plan for a buffer, in actual fact there is a buffer of flats over and above the BTO (flats) which are available and have shorter waiting times,” said Mr Mah.

Touching on the issue of cost, Mr Mah said that the total cost of flats varied accordingly to” when we build, where we build and what we build.”

He reiterated that HDB does not price its flats based on cost plus profit, but on a market price with a generous discount.

“Overall HDB incurs a large deficit in building and selling flats every year, as reflected in its audited annual accounts.  In its financial year from 2008 to 2009, HDB incurred a deficit of $1.5 billion for the home ownership programme alone,” he added.

First -time buyers were assured that there would be sufficient affordable housing.

HDB recently increased the proportions of flats set aside for first –timers from 90 to 95 per cent.  And first-timers are 96 per cent likely to be given a chance to select a flat within two tries, he said.

Mr Mah said he was prepared to look into the cases of those who were unsuccessful after three tries, to see how HDB could help.