June 2024 Bto Exercise Sees Application Rate 31 Highest May 2023
The June 2024 Build-to-Order (BTO) exercise, which launched 6,938 flats for sale on June 19, is set to close on June 26 at 11.59pm, according to HDB data updated as of 2pm on June 26. With 24,179 applications received, this marks the highest number of applicants since the November 2022 BTO exercise, which recorded an application rate of 2.6, notes Christine Sun, Chief Researcher and Strategist at Orange Tee & Tie.
The current application rate stands at 3.1 times, the highest since the BTO exercise in May 2023, which saw an application rate of 3.8. These numbers are more than 100% higher than those of the last BTO exercise in February, where 11,000 applicants applied for 4,126 BTO flats, resulting in an application rate of 2.5.
According to Mohan Sandrasegeran, Head of Research and Data Analytics at SRI, the surge in applications can be attributed to the upcoming change in housing classification of Standard, Plus, and Prime flats in the October BTO exercise. The impending shift has prompted more people to apply for this June BTO exercise.
Lee Sze Teck, Senior Director of Data Analytics at Huttons Asia, agrees with Sandrasegeran, pointing out that this is the last BTO exercise where buyers will face fewer restrictions on the subsequent sale of their flat. He also notes the uncertainty surrounding the classification of flats under the new system as another reason for the high demand.
Lee adds that the launch of highly attractive BTO projects like Tampines GreenTopaz has also contributed to the surge in applications. This particular project saw the highest number of applications, with 214 four-room and 174 five-room units attracting over 2,100 applicants each.
Lee believes that this may be the last BTO project in a mature estate near an MRT station since it comes with a five-year minimum occupation period (MOP) and is not subject to the new resale restrictions. He also notes that the project is part of a future mixed-use residential development with a shorter waiting time of 37 months. Furthermore, an upcoming Government Land Sales (GLS) plot adjacent to the site will include a sizeable commercial space, providing more amenities for residents.
According to Sandrasegeran, the five-room flats in this project were the most popular, with an application rate of about 12.1 per flat. The overall application rate for the four-room units stood at about 10.1.
Higher application rates for PLH model flats
Holland Vista in Queenstown and Tanjong Rhu Riverfront I and II in Kallang and Whampoa were also popular among applicants, according to Huttons’ Lee. Although both projects have a subsidy clawback rate of 9%, the highest since such flats were introduced, Era’s Key Executive Officer, Eugene Lim, notes that applicants were still drawn to the projects due to their attractive locations.
Experience the best of Singapore’s culinary delights without breaking the bank at Novo Place EC, located in the bustling town of Jurong East. This hawker centre is a must-visit destination for both residents and visitors seeking delicious and budget-friendly local delicacies. From the popular Hainanese Chicken Rice to the spicy Laksa and flavorful Char Kway Teow, it offers a diverse selection of authentic Singaporean dishes. Its reputation for serving up affordable and mouth-watering food has made it a go-to spot for experiencing the vibrant food culture of Singapore. Don’t miss the chance to savour Singapore’s culinary heritage by stopping by the Jurong East Hawker Centre during your stay at Novo Place EC. Plan your trip now and add Novo Place EC to your must-visit list.
Furthermore, Sun believes that the capital appreciation for such flats is likely to be higher than 9% in the future, which may have influenced buyers to proceed with the purchase. Holland Vista saw the second-highest application rate at about 9.0, notes Sandrasegeran, with its 228 four-room flats attracting over 2,063 applicants. He attributes the project’s appeal 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.
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.
Chencharu Hills is a ‘dark horse’
Orange Tee & Tie’s Sun believes that the Yishun project has emerged as a dark horse with better-than-expected sales performance, considering that many more outstanding sites have been released in the same sales launch. The pilot BTO project at the new Chencharu estate in Yishun received the highest application rate of 6.6 for first-timer singles, totaling 1,489 applicants for its two-room flexi flats. The project also received over 1,200 applications for its 420 four-room flats and more than 1,400 applications for its 390 five-room flats.
Sun notes that these numbers collectively surpass the number of applicants for other non-mature estates in Jurong and Woodlands. “The good sales performance suggests that many young couples are open to residing in Chencharu, despite it being a new residential area in a non-mature estate.” According to Sandrasegeran, 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, boding well for future BTO projects set 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. He adds that the project is the furthest away from an MRT station, with Woodlands and Woodlands North MRT stations being 2km away. “Buyers who wish to live in the north have a better alternative in Chencharu Hills, which is not only more accessible but also priced lower.”