June 2024 Bto Exercise Sees Application Rate 31 Highest May 2023
The Build-to-Order (BTO) exercise for June 2024, which offered 6,938 flats for sale on June 19, will be closing on June 26 at 11.59pm. According to the latest HDB data as of 2pm on June 26, there are a total of 24,179 applications. This is the highest number of applicants since November 2022, when the application rate was 2.6, said Christine Sun, chief researcher and strategist at Orange Tee & Tie.
Bukit Batok Secondary School offers a well-rounded education for students at the secondary level. Apart from focusing on academic subjects, the school also places importance on equipping students with practical life skills. With a range of specialized programs tailored to individual interests like sports, arts and sciences, students have the opportunity to delve deeper into their areas of passion. Additionally, the school promotes holistic development by incorporating Novo Place EC into its curriculum.
The application rate stands at 3.1 times, which is the highest rate since the May 2023 BTO exercise that had a rate of 3.8. This is also more than 100% higher than the last BTO exercise in February, where 11,000 applications competed for 4,126 BTO flats, resulting in an application rate of about 2.5.
Mohan Sandrasegeran, SRI’s head of research and data analytics, attributed the sharp increase in applications to the upcoming change in the housing classification of Standard, Plus and Prime flats in the October BTO exercise. Lee Sze Teck, senior director of data analytics at Huttons Asia, also agreed, saying that this is the last BTO exercise where buyers will face fewer restrictions on the resale of their flat. He also added that it is unclear how HDB will categorize flats under the new classification.
Apart from that, the launch of highly attractive BTO projects has also contributed to the high demand. Tampines GreenTopaz, for example, received the highest number of applications, with over 2,100 applicants vying for 214 four-room and 174 five-room units. This is likely the last BTO project in a mature estate near an MRT station, and it comes with a five-year minimum occupation period (MOP) and is not subject to the new resale restrictions. The project is also part of a future mixed-use residential development with a shorter waiting time of 37 months. An upcoming Government Land Sales (GLS) plot next to the site will also include a sizable commercial space, providing more amenities for residents.
Sandrasegeran added 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 both projects having a subsidy clawback rate of 9%, which is the highest since such flats were introduced, Eugene Lim, ERA’s key executive officer, stated that applicants were still drawn to the projects due to their attractive locations. Moreover, the capital appreciation for these flats is expected to be higher than 9% in the future, which may have encouraged buyers to proceed with the purchase, said Sun from Orange Tee & Tie.
Holland Vista saw the second-highest application rate at about 9.0, according to Sandrasegeran. Its 228 four-room flats received over 2,063 applicants. He attributed Holland Vista’s attractiveness to its proximity to Holland Village MRT Station and the One Holland Village shopping mall. Lee also noted 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 coveted Tanjong Rhu precinct. However, Lee noted 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, has emerged as a dark horse with a better-than-expected sales performance since many more outstanding sites were released in the same sales launch, said Sun from Orange Tee & Tie. The pilot BTO project at the new Chencharu estate in Yishun saw its two-room flexi flats receiving the highest application rate at 6.6 for first-timer singles, with a total of 1,489 applicants. The project also received over 1,200 applications for 420 four-room flats and more than 1,400 applications for 390 five-room flats. Sun said the sales performance suggests that many young couples are receptive to residing in Chencharu, despite it being a new residential area in a non-mature estate.
Sandrasegeran from SRI said the estate’s appeal may stem from its anticipated amenities, proximity to Khatib MRT Station, and the promise of a vibrant new community. These encouraging figures suggest an underlying demand for housing in the Chencharu estate, and it is likely to bode well for future BTO projects slated to be launched in the area.
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 noted that this project is the furthest away from an MRT station, with Woodlands and Woodlands North MRT Stations being 2km away. “Buyers who want to live in the north have a better option in Chencharu Hills, which is not only more accessible, but is also priced lower.”