Median waiting time for BTOs should come down in the next 2 years: Desmond Lee

SINGAPORE: In the next two years, median waiting times for new Build-to-Order (BTO) projects should come down slightly to four to four-and-a-half years, compared to the waiting time of four to five years for projects currently under construction, said National Development Minister Desmond Lee on Wednesday (May 25).

Progress has been made in speeding up works, following close collaboration between the Housing and Development Board (HDB) and stakeholders such as contractors and suppliers, said Mr Lee.

As a result, there are now also fewer BTO projects facing delays of six months or more.

Mr Lee noted that in April, 58 of them – or less than 60 per cent of all BTO projects – faced such delays.

This is down from the 74 projects – or more than 80 per cent of all BTO developments – that were facing such delays in the same period a year ago.

GRADUALLY TURNING A CORNER

The last two years have been a “perfect storm” for the construction industry amid the COVID-19 pandemic, border closures, supply chain disruptions and rising costs, said Mr Lee.

But he noted that HDB has supported contractors in various ways like helping to bring in foreign workers. For instance, about six to eight months ago, HDB lacked about 25 per cent of the workforce it needed, but manpower has now been “replenished”, he said.

The agency has also helped by sharing increased costs, building up stockpiles of materials and providing advanced payments to ease cash flow, Mr Lee added. 

“It is hard to get back on track (to a pre-COVID pace of work) for all the reasons I’ve articulated. But the single-minded commitment … was to try to build in a way that ensures as little delay as possible to home buyers, so that they can get on with their life plans,” he said.

Even though the sector is “gradually turning a corner”, Mr Lee said there will still be delays as the construction industry is “not out of the woods yet”. Progress will continue to be closely monitored, he added.