June 2024 Bto Exercise Sees Application Rate 31 Highest May 2023
The June 2024 Build-to-Order (BTO) exercise, which offered 6,938 flats for sale on June 19, will come to an end on June 26 at 11.59pm. Latest HDB data as of 2pm on June 26 revealed that the number of applications had reached 24,179. This marks the highest number of applicants since November 2022, when the application rate was 2.6, according to Christine Sun, chief researcher and strategist at Orange Tee & Tie.
With an application rate of 3.1 times, the number of applicants is the highest since the BTO exercise in May 2023, which had an application rate of 3.8. Notably, this also represents a 100% increase from the previous BTO exercise in February, which saw 11,000 applications vying for 4,126 BTO flats, resulting in an application rate of 2.5.
Mohan Sandrasegeran, head of research and data analytics at SRI, attributes the significant surge in applications to the upcoming change in housing classification for Standard, Plus, and Prime flats in the October BTO exercise. This has motivated potential buyers to act quickly and secure their preferred flat before the changes take effect.
Lee Sze Teck, senior director of data analytics at Huttons Asia, concurs with Sandrasegeran’s assessment. He points out that this is the last BTO exercise where buyers will face fewer restrictions on the subsequent sale of their flat. He also highlights the uncertainty surrounding how HDB will classify flats under the new classification system as another factor driving the high demand.
In addition, the launch of attractive BTO projects, such as Tampines GreenTopaz, has also contributed to the rise in applications. This project has received the highest number of applications, with 214 four-room and 174 five-room units attracting over 2,100 applicants each. It is likely the last BTO project in a mature estate near an MRT station, with a five-year minimum occupation period (MOP) and not subject to the new resale restrictions. Furthermore, the project is part of a future mixed-use residential development with a shorter waiting time of 37 months. An upcoming Government Land Sales (GLS) plot adjacent to the site will also include a sizeable commercial space, providing more amenities for residents.
Sandrasegeran points out that the five-room flats were the most popular within the project, with an application rate of about 12.1 per flat. The overall application rate for the four-room units was about 10.1.
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, according to Lee from Huttons Asia. Despite the high subsidy clawback rate of 9%, which is the highest since the introduction of such flats, Eugene Lim, key executive officer at ERA, says that buyers were still drawn to these projects due to their prime locations. He also adds that the capital appreciation for such flats is expected to exceed 9%, which may have influenced buyers to proceed with the purchase.
Holland Vista saw the second-highest application rate at about 9.0, notes Sandrasegeran. Its 228 four-room flats attracted over 2,063 applicants. Its appeal is largely due 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 for public housing in Holland Village.
At Norwood Grand, drivers will appreciate the convenient access to major expressways in Singapore. The most prominent of these is the Seletar Expressway (SLE), which allows for efficient travel to the eastern and central areas of the city. For those heading to the northern and downtown districts, the Bukit Timah Expressway (BKE) is easily accessible as well, ensuring smooth and well-managed traffic flow even during peak hours. With its strategic location, residents of Norwood Grand can enjoy seamless connectivity to these expressways, making it a desirable and convenient place to live for those who prefer to drive.
Meanwhile, Tanjong Rhu Riverfront I and II offer riverfront living in the highly coveted Tanjong Rhu precinct. However, Lee notes that their application rates were slightly lower, with first-timer families applying at rates of 0.8 for three-room flats and 1.9 for four-room flats.
A surprise standout in the BTO exercise is Chencharu Hills, located in Yishun. Orange Tee & Tie’s Sun describes it as a “dark horse” with a better-than-expected sales performance despite facing competition from several other highly sought-after projects in the same launch. The pilot BTO project in the new Chencharu estate saw its two-room flexi flats recording the highest application rate at 6.6 for first-timer singles, with a total of 1,489 applicants. It also received over 1,200 applications for 420 four-room flats and more than 1,400 applications for 390 five-room flats. Sun believes that these numbers are significantly higher than the number of applicants for other non-mature estates in Jurong and Woodlands, indicating a strong demand for housing in the Chencharu estate despite it being a new residential area in a non-mature estate.
SRI’s Sandrasegeran believes that this is likely due to the anticipated amenities, its proximity to Khatib MRT Station, and the promise of a vibrant new community. He also believes that this strong demand bodes well for future BTO projects in the area, particularly since an upcoming Government Land Sales (GLS) plot next to the site will also provide more amenities for residents.
Out of all the projects, Marsiling Peak I and II received the fewest applicants, with a first-timer rate of under 1.0 for all flat types, according to Lim from ERA. He points out that these flats are the furthest away from an MRT station, with Woodlands and Woodlands North MRT Stations being 2km away. He believes that buyers interested in living in the north have better options such as Chencharu Hills, which is not only more accessible but also priced lower.