June 2024 Bto Exercise Sees Application Rate 31 Highest May 2023
Singapore’s June 2024 Build-to-Order (BTO) exercise, launched on June 19 with 6,938 flats for sale, will end on June 26 at 11.59pm. As of 2pm on June 26, HDB data shows that there have been 24,179 applications, the highest number since November 2022, when the rate was 2.6. This translates to an application rate of 3.1 times, the highest since the BTO exercise in May 2023 when it was at 3.8. The number of applicants has also risen by more than 100% compared to the previous BTO exercise in February, where 11,000 applications competed for 4,126 BTO flats, resulting in an application rate of about 2.5.
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According to Christine Sun, chief researcher and strategist at Orange Tee & Tie, this sharp increase in applications can be attributed to the upcoming change in housing classification for Standard, Plus, and Prime flats in the October BTO exercise. In agreement, Lee Sze Teck, senior director of data analytics at Huttons Asia, states that this is the last BTO exercise with fewer restrictions on the subsequent sale of flats, and the new classification system is not yet clear.
Another contributing factor to the high demand is the launch of appealing BTO projects, like Tampines GreenTopaz, which received over 2,100 applicants for each of its 214 four-room and 174 five-room units. This is the last BTO project in a mature estate near an MRT station, with a five-year minimum occupation period (MOP) and exempt from the new resale restrictions. Additionally, the project is part of a mixed-use residential development with a shorter waiting time of 37 months, and an upcoming Government Land Sales (GLS) plot nearby will include a sizable commercial space, offering more amenities for residents.
Mohan Sandrasegeran, SRI’s head of research and data analytics, notes 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 having a subsidy clawback rate of 9%, the highest since the introduction of such flats, Eugene Lim, ERA’s key executive officer, agrees that buyers were still drawn to the projects due to their prime locations, with the potential for capital appreciation higher than 9% in the future.
Holland Vista had the second-highest application rate at about 9.0, observes Sandrasegeran, with its 228 four-room flats attracting over 2,063 applicants. He attributes its attractiveness to its proximity to Holland Village MRT Station and the One Holland Village shopping mall. Lee also notes that Holland Vista 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 sought-after Tanjong Rhu area. However, Lee adds 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.
Chencharu Hills, the new BTO project in Yishun, has emerged as a surprise hit, outperforming other projects launched in the same sales exercise, according to Orange Tee & Tie’s Sun. The pilot BTO project saw its two-room flexi flats with the highest application rate of 6.6 for first-timer singles, totaling 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, outperforming other non-mature estates in Jurong and Woodlands. Sun believes that this good sales performance indicates a demand for housing in the new Chencharu estate, despite it being in a non-mature area.
Sandrasegeran from SRI attributes Chencharu’s appeal to its anticipated amenities, proximity to Khatib MRT station, and the promise of a vibrant new community. He believes that this positive response bodes well for future BTO projects in the area.
On the other hand, Woodlands’ Marsiling Peak I and II drew the fewest applicants, with a first-timer rate of under 1.0 for all flat types, says ERA’s Lim. He suggests that this is likely due to its distance from an MRT station, with Woodlands and Woodlands North MRT Stations being 2km away. Lim believes that those looking to live in the north have a better option with the more accessible and lower-priced Chencharu Hills.