According to the HDB, in the past three years, about 40 per cent of the applicants invited to shop for flats did not place their orders.

This has resulted in buyers with more pressing housing needs being denied the opportunity to purchase a flat, and has also caused the authorities to consume many resources in the process of processing applications, ballot and reservations.

Speaking at the Parliamentary Appropriations Committee debate on the departmental budget, National Development Minister Lee Chee San said that the authorities would tighten the regulations to ensure that HDB flats are made available more quickly to those in need.

From the August sale, first-time buyers who are invited to shop for a HDB flat will not be able to enjoy the first-time buyer's priority in the lottery for a year afterwards if they give up their right to shop, while second-time buyers will not be allowed to apply for a pre-purchased HDB flat for a year.

The Minister said that HDB will not take action against applicants who give up their right to purchase if there are no more than 10 pre-purchased HDB flats available for purchase, or no more than five remaining HDB flats where the supply is already low. The authority will also be flexible if there are extenuating circumstances.

At present, first-time and second-time buyers are required to give up their right to choose twice in a row before they are denied priority in the ballot or application.