June 2024 Bto Exercise Sees Application Rate 31 Highest May 2023
The June 2024 Build-to-Order (BTO) exercise, launched with a total of 6,938 flats on June 19, will come to a close on June 26 at 11.59pm. As of 2pm on June 26, the number of applicants stood at 24,179, marking the highest number since November 2022 when the application rate was at 2.6. According to Christine Sun, chief researcher and strategist at Orange Tee & Tie, this works out to an application rate of 3.1 times, the highest since the May 2023 BTO exercise which had an application rate of 3.8.
This surge in applicants is attributed to the impending change in housing classification of Standard, Plus and Prime flats in the upcoming October BTO exercise, according to Mohan Sandrasegeran, head of research and data analytics at SRI. Lee Sze Teck, senior director of data analytics at Huttons Asia, agrees that this is the last BTO exercise with fewer restrictions on the resale of flats, and there is uncertainty on how HDB will categorise the flats under the new classification.
The launch of highly attractive BTO projects, such as Tampines GreenTopaz, is also a contributing factor to the high demand, with 214 four-room and 174 five-room units attracting over 2,100 applicants each. This project, located in a mature estate near an MRT station, has a five-year minimum occupation period (MOP) and is not subject to the new resale restrictions. It is also part of a future mixed-use residential development with a shorter waiting time of 37 months, with an upcoming Government Land Sales (GLS) plot adjacent to the site slated for a sizeable commercial space.
Sandrasegeran notes that 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 four-room units was about 10.1.
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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 a subsidy clawback rate of 9%, the highest since the introduction of such flats, Eugene Lim, key executive officer at ERA, explains that the projects’ attractive locations still drew in applicants. Sun adds that the capital appreciation for such flats is expected to be higher than 9% in the future, which may have pushed buyers to proceed with the purchase. Holland Vista saw the second-highest application rate at about 9.0, with 228 four-room flats attracting over 2,063 applicants. Its appeal can be attributed to its proximity to Holland Village MRT Station and the One Holland Village shopping mall, and it is likely the last plot of land for public housing in Holland Village.
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 lower, with first-timer families applying at rates of 0.8 for three-room flats and 1.9 for four-room flats.
The Yishun project, Chencharu Hills, emerged as a surprise performer with better-than-expected sales, despite many more outstanding sites being released in the same sales launch, says Sun from Orange Tee & Tie. The pilot BTO project at the new Chencharu estate in Yishun saw its two-room flexi flats having 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, collectively higher than the number of applicants for other non-mature estates in Jurong and Woodlands. Sun explains that this indicates a demand for housing in the Chencharu estate, despite it being a new residential area in a non-mature estate.
Sandrasegeran adds that the estate’s appeal may stem from its anticipated amenities, proximity to Khatib MRT Station, and the promise of a vibrant new community. This positive sales performance bodes well for future BTO projects in the area, he says.
Marsiling Peak I and II had the fewest applicants, with a first-timer rate of under 1.0 for all flat types, according to Lim from ERA. He notes that this project is the furthest away from an MRT station, with Woodlands and Woodlands North MRT Stations being 2km away. Lim suggests that buyers interested in living in the north may have opted for Chencharu Hills, which is not only more accessible but also priced lower.