June 2024 Bto Exercise Sees Application Rate 31 Highest May 2023
The deadline for the June 2024 Build-to-Order (BTO) exercise, which launched with 6,938 available flats on June 19, will draw to a close on June 26 at 11.59pm. The Housing and Development Board (HDB) has reported that as of 2pm on June 26, there have been 24,179 applications submitted. This is the highest number of applicants since November 2022, when the application rate stood at 2.6, according to Christine Sun, the chief researcher and strategist at Orange Tee & Tie. The current application rate of 3.1 times also marks the highest since the May 2023 BTO exercise, which had an application rate of 3.8. This surge in applicants marks an increase of over 100% from the last BTO exercise in February, which saw over 11,000 applications for 4,126 BTO flats, resulting in an application rate of about 2.5.
Mohan Sandrasegeran, head of research and data analytics at SRI, attributes this sharp increase in applications to the upcoming change in housing classification for Standard, Plus, and Prime flats in the October BTO exercise. This has caused buyers to vie for the current BTO projects, as it is uncertain how HDB will categorize flats under the new classification. Lee Sze Teck, senior director of data analytics at Huttons Asia, agrees that this is the last BTO exercise where buyers will face fewer restrictions on the resale of their flat. He also points out that the launch of highly attractive BTO projects, such as Tampines GreenTopaz, has contributed to the high demand. This project received the most applications, with 214 four-room and 174 five-room units attracting over 2,100 applicants each. It is also likely the last BTO project in a mature estate near an MRT station, with a five-year minimum occupation period (MOP) and no new resale restrictions. Additionally, the project is part of a future mixed-use residential development with a shorter waiting time of 37 months. An upcoming Government Land Sales (GLS) plot adjacent to the site will include a sizeable commercial space, offering more amenities for residents. Sandrasegeran adds 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. Although these projects have a subsidy clawback rate of 9%, the highest since such flats were introduced, Eugene Lim, ERA’s key executive officer, notes that applicants were still attracted to the projects due to their prime locations. Moreover, the capital appreciation for such flats is expected to be higher than 9% in the future, which may have influenced buyers to proceed with the purchase, says Sun from Orange Tee & Tie. Holland Vista saw the second-highest application rate at about 9.0, as its 228 four-room flats received over 2,063 applicants. Its popularity is likely due 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, although 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.
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Chencharu Hills, a new BTO project in Yishun, has emerged as a “dark horse” with better-than-expected sales performance, says Sun from Orange Tee & Tie. This is despite the launch of many other highly anticipated projects in the same sales launch. The pilot project, located in the new Chencharu estate, received the highest application rate for two-room flexi flats, at 6.6 for first-timer singles, with a total of 1,489 applicants. It also saw over 1,200 applications for 420 four-room flats and more than 1,400 applications for the 390 five-room flats. Sun notes that collectively, these numbers are higher than the number of applicants for other non-mature estates in Jurong and Woodlands. She says that this suggests many young couples are open to living in the Chencharu estate, despite it being a new residential area in a non-mature estate. Sandrasegeran from SRI 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. He believes that the strong sales performance indicates underlying demand for housing in the Chencharu estate, which bodes well for future BTO projects in the area. Out of all the BTO 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 points out 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 the better option of Chencharu Hills, which is not only more accessible but is also priced lower,” he says.