June 2024 Bto Exercise Sees Application Rate 31 Highest May 2023

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EDGEPROP – The latest Build-to-Order (BTO) exercise launched on June 19 for flats with estimated completion in June 2024 is set to close on June 26 at 11.59pm. According to updated data from the Housing and Development Board (HDB) as of 2pm on June 26, there have been a total of 24,179 applications for the 6,938 flats available. This is the highest number of applicants since November 2022, when the application rate was at 2.6, according to Orange Tee & Tie’s chief researcher and strategist Christine Sun. The application rate for this BTO exercise stands at 3.1, marking the highest rate since the BTO exercise in May 2023, which was at 3.8. Notably, the number of applicants for this exercise is over 100% higher than the last BTO exercise in February, where there were over 11,000 applications competing for 4,126 flats. This translated to an application rate of about 2.5.Sun attributes this sharp increase in applications to the upcoming change in housing classification for Standard, Plus and Prime flats in the October BTO exercise. According to Mohan Sandrasegeran, SRI’s head of research and data analytics, this is likely the primary factor driving the high demand for BTO flats in this exercise.Read also: HDB launches close to 7,000 new flats in June 2024 BTO sales launchAdvertisementSenior director of data analytics at Huttons Asia Lee Sze Teck agrees, noting that this BTO exercise is the last one where buyers will encounter fewer restrictions on subsequent sales of their flats. He also points out that there is currently no clear indication of how HDB will classify flats under the new classification system.Lee believes that the launch of highly sought-after BTO projects, such as Tampines GreenTopaz, also contributed to the high demand in this exercise. Tampines GreenTopaz attracted the highest number of applications, with 214 four-room and 174 five-room units receiving over 2,100 applicants each.Lee and Sandrasegeran both note that Tampines GreenTopaz is likely the last BTO project located in a mature estate, and near an MRT station, no less. Additionally, the project comes with a shorter waiting time of just 37 months and a five-year minimum occupation period (MOP), without being subjected to the new resale restrictions. Moreover, an upcoming Government Land Sales (GLS) plot next to the site will introduce a sizeable commercial space, providing added convenience and amenities for residents.Sandrasegeran also mentions that the five-room flats in Tampines GreenTopaz were the most popular, with an application rate of about 12.1 per flat. The overall application rate for the four-room units was about 10.1.Higher application rates for PLH model flatsHutten Asia’s Lee points out that the two Prime Location Public Housing (PLH) projects, Holland Vista in Queenstown and Tanjong Rhu Riverfront I and II in Kallang and Whampoa were also popular among applicants. Even though both projects have a subsidy clawback rate of 9%, which is the highest since such flats were introduced, Eugene Lim, ERA’s key executive officer, believes that these attractive locations were still strong motivators for applicants.AdvertisementOrange Tee & Tie’s Sun adds that the capital appreciation for such flats could potentially exceed 9% in the future, which may have persuaded buyers to go through with their purchases. Holland Vista saw the second-highest application rate at about 9.0, with Sandrasegeran attributing its popularity to its proximity to Holland Village MRT Station and the One Holland Village shopping mall. Lee also points out that Holland Vista is likely the last plot of land designated for public housing in Holland Village.Meanwhile, Tanjong Rhu Riverfront I and II offer waterfront living in the highly coveted Tanjong Rhu precinct. However, Lee notes that their application rates were comparatively lower, with first-timer families applying at rates of 0.8 for three-room flats and 1.9 for four-room flats.Chencharu Hills a ‘dark horse’The Yishun project has emerged as a ‘dark horse’ due to its better-than-expected sales performance, despite having to compete with other outstanding sites in the same sales launch, reveals Orange Tee & Tie’s Sun. First-timers looking to purchase the pilot BTO project at the new Chencharu estate in Yishun have submitted a total of 1,489 applications for the two-room flexi flats, translating to an application rate of 6.6 for singles. The development also received over 1,200 applications for the 420 four-room flats and over 1,400 applications for the 390 five-room flats.AdvertisementSun notes that these figures are collectively higher than the number of applicants for other non-mature estates, such as Jurong and Woodlands. She believes that this strong sales performance indicates a genuine demand for housing in the Chencharu estate, despite it being a new residential area in a non-mature estate. According to SRI’s Sandrasegeran, the estate’s appeal may stem from its anticipated amenities, its proximity to Khatib MRT Station, and the promise of a vibrant new community. He suggests that the encouraging sales figures could potentially bode well for future BTO projects that will be launched in the area.Meanwhile, ERA’s Lim believes that out of all the projects launched in this BTO exercise, Marsiling Peak I and II have drawn the fewest applicants. Lim notes that this is likely due to its location, which is furthest away from an MRT station, as Woodlands and Woodlands North MRT Stations are located 2km away. He suggests that interested buyers who prefer to reside in the north are more likely to choose Chencharu Hills, which is much more accessible and comparatively lower in price.