October BTO launch drew 35,677 applicants

The latest HDB Build-To-Order (BTO) exercise in October attracted 35,677 applications, the highest number in a BTO launch since August 2022.

The overall application rate was 4.16 or around four people applying for one flat. The August 2022 exercise, had an application rate of 7.8 times.

Property analysts highlighted factors such as shorter waiting times for certain projects, more flexible policies for singles, and the attractive location of some projects as significant drivers of demand.

The latest launch in October saw 8,573 flats put up for sale under a new framework, which classified projects as Standard, Plus or Prime, based on factors like proximity to the city centre and transport connectivity.

The Plus and Prime flats come with stricter resale conditions such as a 10-year Minimum Occupation Period (MOP), and a subsidy clawback of between 6 per cent and 9 per cent. That said, Plus and Prime flats still drew significant interest, said analysts.

“We think this is an early indication of the buy-in for the Plus and Prime flat types,” said PropNex chief executive Ismail Gafoor.

“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 dampener on their buying decision, especially if the BTO project is in a choice location.”

Based on overall application rate, Mr Gafoor noted that Central Trio @ AMK stood out as the most popular project in the latest BTO sales, with a total application rate of almost eight times. The 422 units in this Plus project drew 3,344 applicants.

“We had expected this project to see strong demand, as new flats in Ang Mo Kio are relatively rare. The previous BTO project offered in this town in August 2022 – Central Weave @ AMK – garnered an application rate of 14.1 times,” said Mr Gafoor.

There was also healthy demand for the three Plus projects in Bedok (one in Kembangan and two in Bayshore), which collectively garnered an application rate of 4.9 times.

As for Kallang/Whampoa, which had two Plus and one Prime project, HDB received 4.4 applications for each available flat.

This BTO exercise also saw a surge in applications for two-room flexi flats, these flats made up 22 per cent of the total flats offered in this launch.

Singles garnered the highest median application rate of 26.3 times. October’s sales saw 10,884 applicants vying for just 1,902 units.

For the first time, eligible singles could apply for two-room flexi flats in any location, which may have supercharged demand, noted analysts.

The 130 two-room flexi flats in West BrickVille@Bukit Batok, which has a waiting time of just two years, emerged as the most sought-after project, with an application rate of 36.2 times among first-time singles.

The proximity of this project to the upcoming Tengah Park MRT station and Tengah town centre added to its appeal, attracting applicants eager to secure a home in the area, said Mr Gafoor.

Despite the buzz around Plus and Prime flats, Standard flats, which come with fewer restrictions, also attracted decent interest.

The Standard projects in Sengkang and Woodlands, for instance, attracted application rates of about four times. These projects were close to public transport and amenities.

Overall, Standard flats which accounted for 58 per cent of the total BTO units launched in October, pulled in 18,573 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,” said Mr Gafoor.

Meanwhile, larger flats remained sought-after. There were 5,920 applicants for the 1,485 units of five-room and 3Gen flats offered, representing an application rate of about four times.

Mr Gafoor noted that competition was particularly fierce among second-timer families, with five-room and 3Gen flats in Pasir Ris receiving 138 applications per unit – the highest rate since May 2023.

Similarly, second-timer families faced intense competition for four-room and three-room flats, with Central Trio in Ang Mo Kio recording an application rate of 54.5 times for four-room units, and Bedok seeing 55.8 times for three-room flats.

Mr Kelvin Lim, 57, a second-time applicant, hopes to secure a four-room flat in Bayshore, so his eight-year-old son can go to a secondary school in the area.

Downsizing from his current five-room flat in Pasir Ris would also ease his financial burden, and a Plus flat in Bayshore would be a better long-term investment compared with his current 28-year-old flat in Pasir Ris, said Mr Lim, a customer service officer.

“With its proximity to the city, I think the flat is a good investment for my son’s future,” Mr Lim added.