Remaining buyers of pandemic-delayed BTO flats to receive keys by end-March

SINGAPORE – The home owners of the last Build-To-Order (BTO) projects delayed by the pandemic will collect their keys by end-March, turning the page on the Housing Board’s multi-year effort to complete and deliver these units to buyers.

On March 8, the Housing Board said that all 1,651 flat buyers of the final two pandemic-delayed BTO projects – Punggol Point Cove (Phase 2) and Kempas Residences – have appointments to collect their keys after the

projects were completed in January.

This brings an end to a five-year period when HDB had projects behind schedule.

In total, 72,101 households over 92 housing projects were affected by Covid-19 disruptions such as lockdowns, safe distancing measures and supply chain interruptions.

Of the affected projects, 27 were delayed by between one and six months after their original probable completion dates, while another 62 projects were delayed by between seven and 12 months.

One project, Keat Hong Verge, was completed on schedule in March 2023.

Two projects – Waterway Sunrise II and Anchorvale Village – were completed beyond their delivery possession date, which is the legal contractual date by which HDB must hand over the flat to buyers.

These projects also marked the first time HDB has not been able to deliver projects by their legal contractual date.

On March 8, HDB said that a total of $5.5 million in compensation was paid to more than 1,000 flat buyers across the two projects, in accordance with the Covid-19 (Temporary Measures) Act.

HDB said it compensated flat buyers the maximum reimbursement sum that they were eligible for without requiring them to submit any claims or proof of expense.

It was previously reported that buyers of Anchorvale Village, which comprises 207 units, were

expected to be reimbursed between $2,270 and $6,360

.

Meanwhile, eligible buyers of Waterway Sunrise II, which has 1,014 units,

were reimbursed about $1,000 to $10,500

, with households receiving $5,750 on average.

Giving details about the housing assistance HDB had provided to buyers of the delayed flats, the agency said that since 2020, about 900 buyers rented subsidised flats from the HDB for temporary accommodation.

This group comprised buyers who were unable to find alternative interim housing arrangements with family members and relatives, or on the open market, while awaiting the completion of their flats.

As for those who decided to cancel their BTO flat bookings and look for resale flats due to urgent housing needs, HDB waived cancellation forfeitures, taking into account the circumstances of each case. The board said about 450 such buyers were granted waivers.

Besides buyers, HDB contractors were also given support to minimise delays.

HDB said that in total, more than $430 million in financial assistance was disbursed to help contractors cope with increased manpower, construction materials and compliance-related costs during the pandemic.

Mr Von Lee, board chairman of Expand Construction, which worked on four pandemic-delayed BTO projects, said that assistance included helping contractors secure critical construction materials at protected prices. For instance, he said, steel price protections provided by HDB that usually last for 18 months were extended, such that HDB, instead of the contractors, would bear the brunt of supply chain disruptions for such materials.

Mr Lee said HDB also adjusted payment frequency to help with cash flow, while the HDB said it shared costs with contractors, such as equipment rental and site maintenance fees that arose from prolonged construction contracts.

Additionally, HDB also helped contractors to secure manpower to expedite work.

Mr Lee said the completion of pandemic-delayed projects was aided by dialogue between contractors and the senior management of HDB, who he said were proactive in finding solutions to help contractors overcome pandemic disruptions.

HDB noted that all the pandemic-delayed projects assessed from 2020 to 2023 had, on average, higher construction quality scores than private residential developments built during the same period.

In a statement, National Development Minister Desmond Lee said that with all 92 pandemic-disrupted projects completed, HDB has “returned to normalcy in our BTO construction progress”.

HDB is currently constructing 113 projects, and is on track to complete about 17,000 flats across 27 projects in 2025.

The minister said that all 113 projects are expected to be delivered on time, with some expected to be ready ahead of schedule by about three to six months.

He cited the Toa Payoh Ridge BTO project, which was originally slated for completion in the third quarter of 2025 but is now expected to be completed three months earlier, in the second quarter of 2025.

“This is the first project since the pandemic in 2020 which will be completing earlier than the original probable completion date communicated to buyers,” said the minister, who added that “a few more projects” are slated to be completed slightly ahead of their probable completion dates in 2025 and 2026.