Build to order (BTO) is a real estate development scheme enacted by the Housing and Development Board (HDB), a statutory board responsible for Singapore's public housing. First introduced in 2001, it consists of a flat allocation system that offers flexibility in timing and location for owners buying new public housing in the country.
Singaporeans select and apply for an apartment in their preferred location(s) from a list of launch sites. A tender for construction will be called only if the number of applicants is at least 70% of the number of apartments in a specific contract (50% since 2011), otherwise, the project is not built.
BTO replaced the predecessor Registration for Flats System (RFS) scheme, whereby the waiting time for new flat applicants was relatively shorter because flats were built ahead of demand. In comparison, the new BTO system requires a waiting period of about 3–4 years instead as such a system removes the need for the government to make projections ahead of demand. For eligible flat buyers in urgent need of accommodation, they can ballot for leftover units that are reintroduced into the market, known as Sales of Balance flats (SBF). In February 2019, it was announced that starting from the middle of 2019, flat buyers will be able to apply for unsold BTO flats online anytime on a first-come, first-served basis, and book a flat by the next working day. This is to help citizens with urgent needs for housing.[1]
All BTO projects are designed by Surbana Corporation, an infrastructure and urban development conglomerate owned by Temasek Holdings. To allow private sector a share of the public housing pie, HDB launched the Design, Build and Sell Scheme (DBSS). The first pilot DBSS project at Tampines was built by private developer, Sim Lian Group, before subsequently being maintained by the HDB after construction. In 2011, then National Development Minister Khaw Boon Wan eventually ended the DBSS scheme indefinitely and all BTO projects are now strictly within the public sector.[2]
The demand for BTO flats was low in the first years, resulting in the cancellation of 5 projects as they did not meet the requirement of minimum 70% application ratio. However, once the demand recovered, HDB has launched between 20 and 40 BTO projects annually since 2010, which consists of 15,000–28,000 units. By the end of 2015, HDB had launched 251 BTO projects, comprising 168,453 units.[5]
Construction costs for 5-room, 4-room, 3-room & 2-room units respectively averaged about $160,000, $120,000, $80,000 & $40,000 (based on 2004 cost). This also include the cost of sub-contractors and construction of multistorey car parks, lifts, electrical substations (ESS), child-care centres, playgrounds, fitness corners, linkway shelters and general landscaping.