Singles Out Force Hdb Receives More 10000 Applications Just 1902 Two Room Flexi Units Oct 2024 Bto
HDB has reported receiving a staggering 10,291 applications for the 1,902 two-room flexi units that were available in the October 2024 BTO sales exercise. With a significant number of applications from singles, first-timer families, second-timer families, and seniors, these flats accounted for almost 1/3 of all applications received.
Eugene Lim, key executive officer of ERA Singapore, noted a sharp increase in the demand for two-room flexi flats after the government’s recent decision to allow singles to apply for these units in all estates. “This is the first time that singles have the opportunity to apply for two-room flexi flats island-wide, whereas in the past they were limited to non-mature estates,” he said.
According to data provided by Huttons Asia, around 6,000 of the applications for the two-room flexi flats are expected to be from eligible singles, showing the pent-up demand for these units. Lee Sze Teck, senior director of data analytics at Huttons Asia, estimates that it could take up to 5 years to satisfy this demand.
West BrickVille @ Bukit Batok, a 130-unit Standard BTO project, received the highest application rate of 33.4 among first-timer singles. In total, this project received 1,152 applications for its two-room flats, including applications from first-timer families, second-timer families, and seniors.
“This project has a short waiting time of just two years and we think many singles who are eager to have their own place could have applied for a two-room flexi flat here. In addition, the location is fairly attractive – near to the future Tengah Park MRT station, and the Tengah town centre,” says Ismail Gafoor, CEO of PropNex.
The 139-unit Towner Breeze, a Plus project in the Kallang/Whampoa town, also saw strong interest from first-timer singles with an application rate of 27.7. Overall, the project received 924 applications for its two-room flats.
“First-timer singles were the major driving force behind the demand for two-room flexi flats, with relevant application rates reaching as high as 33.4 in Bukit Batok and 27.7 in Kallang Whampoa,” says Lim.
The October 2024 BTO launch will include 1 Prime project, 7 Plus projects, and 7 Standard projects, and will be the first BTO launch under the new location-based classification. It offers a variety of units including Plus flats and Open-Concept layouts for buyers to choose from.
As of 5pm on the day the BTO exercise closed, a total of 33,983 applications were received, which is 47.6% higher than the previous BTO sales exercise in June. Lee points out that the overall application rate recorded for this month’s sales exercise is about 4.0, compared to the 3.3 rate seen in June 2024.
The Standard projects at Pasir Ris, Costa Riviera I & II saw the highest application rates among the 15 BTO projects released this month, with first-timer families making up a significant portion of the applications. This includes 145 five-room/3Gen flats, 393 four-room flats, and 86 three-room flats.
In particular, the application rates among first-timer families for the five-room and 3Gen flats at these two developments were 6.3, while the application rate among second-timer families was significantly oversubscribed at a rate of 130. First-timer families also flocked to the four-room units, leading to an application rate of 3.4, while the application rate among second-timer families was 30.9.
After Pasir Ris, West BrickVille @ Bukit Batok was the second most popular project with application rates of 1.7, 3.0 and 3.5 times for three-room, four-room and five-room/3Gen flats, respectively.
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Other Standard projects, such as Fernvale Oasis and Fernvale Sails in Sengkang, and Marsiling Ridge in Woodlands, also received a strong response for their three-room and larger units, with first-timer family application rates ranging from 2.2–2.8 and 2.7–2.8 times respectively.
According to Lim, the popularity of the Standard BTO projects offered in this month’s sales exercise can be attributed to their shorter wait times and good locational attributes. “For instance, flats at West Brickville @ Bukit Batok are slated to be completed within two years, while those at Costa Rivera I and II will have waiting times of around three years,” he says.
Overall, this BTO sales exercise saw a relatively uniform demand for flats across all 15 projects, says Lee, adding: “There did not appear to be a spike in demand for Plus and Prime flats in the Oct 2024 BTO exercise. The demand for flats was balanced and similar to previous BTO exercises”.
This was echoed by Gafoor who noted that Standard BTO flats, which accounted for 58% of the total BTO units launched in October, received 17,738 applications, or about 52% of the overall applications. “This seems quite balanced, and allays some initial concerns that Standard flats may see a deluge of applications, should prospective buyers decide to shun Plus and Prime flats,” he says.
Meanwhile, the only Prime project offered this month was Crawford Heights in the Kallang/Whampoa estate, with two Plus projects, Kallang View and Towner Breeze. Overall, the four-room flats for Prime and Plus BTO projects in the town, including those at Crawford Heights, had an application rate of 2.6 for first-timer families, slightly higher than the 2.1 rate seen in June 2024’s BTO launch featuring the Tanjong Rhu Riverfront I and II projects, which have fewer amenities.
However, Gafoor of PropNex noticed that the mix of Plus and Prime projects in Kallang Whampoa performed better than the two Prime Location Public Housing (PLH) projects in the June 2024 BTO exercise – Tanjong Rhu I and II – which had an application rate of 2.4 times. Similarly, the Plus projects in Bedok in this month’s BTO exercise outperformed those of Bedok South Bloom and Bedok North Springs, which achieved an application rate of 2.8 times in the February 2024 BTO launch.
“We think this is an early indication of the buy-in for the Plus and Prime flat types which carry tighter restrictions, longer MOP, and subsidy clawback on resale. It suggests that many buyers – both first-timers and second-timers – are willing to commit long-term to their flat, and that the additional restrictions are not a barrier to their buying decision, especially if the BTO project is in a desirable location,” says Gafoor.
He adds that unsuccessful applicants can look forward to the next BTO sales exercise in February, which is expected to offer approximately 4,960 new flats across five different projects. Among them will be the first BTO project in the newly announced Woodlands North Coast precinct.
The applications for the October 2024 BTO sales exercise closed at 11:59pm on Oct 23.