Costa Riviera I & II saw the highest application rates among the 15 BTO projects released this month. (Picture: HDB)
HDB has received more than 10,291 applications for the 1,902 two-room flexi units offered in the October 2024 BTO Sales Exercise.
As of 12pm on Oct 23, the day the BTO exercise closes, applications from singles, first-timer families, second-timer families, and seniors for these flats made up close to a third of all applications received in this month’s BTO exercise.
According to Eugene Lim, key executive officer of ERA Singapore, applications for the two-room flexi flats jumped “dramatically” on the back of the government’s recent decision to allow singles to apply for two-room flexi flats in all estates.
“For the first time, singles are able to apply for two-room units island-wide, while in the past they could only apply to flats in non-mature estates,” he notes.
According to data provided by Huttons Asia, just over 6,000 applications for the two-room flexi flats are likely to have originated from eligible singles. "This increase was expected and showed the level of pent-up demand from singles. It may take at least 5 years before this demand is satisfied," says Lee Sze Teck, senior director of data analytics at Huttons Asia.
West BrickVille @ Bukit Batok, a 130-unit Standard BTO project, saw the highest application rate of 33.4 among first-timer singles. Overall, this BTO project received 1,152 applications for its two-room flats, which include 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.
There was also strong interest for the 139-unit Towner Breeze, a Plus project in the Kallang/Whampoa town, where the application rate for singles was 27.7. A total of 924 applications were submitted 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.
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He adds that this puts the median application rate for single first-timers at 25.1, which is markedly higher than the 6.4 median registered during June 2024’s BTO exercise.
The total number of applications was 33,983 as of 5pm today. This is 47.6% higher than the total applications put in during the last BTO sales exercise in June. Lee points out that the overall application rate recorded during this month's sales exercise is about 4.0, compared to the 3.3 rate recorded during the June 2024 sales exercise.
The Standard projects at Pasir Ris, Costa Riviera I & II saw the highest application rates among the 15 BTO projects released this month. Costa Riviera I & II consist of 145 five-room/3Gen flats, 393 four-room flats, and 86 three-room flats.
The application rate among first-timer families for the five-room and 3Gen flats at these two developments was 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 runner-up with application rates of 1.7, 3.0 and 3.5 times for three-room, four-room and five-room/3Gen flats, respectively.
An artist impression of West BrickVille @ Bukit Batok. (Picture: HDB)
Other Standard projects, like Fernvale Oasis and Fernvale Sails in Sengkang, and Marsiling Ridge in Woodlands, also saw robust responses for three-room and larger units, with first-timer family application rates ranging from 2.2–2.8 and 2.7–2.8 times respectively.
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Lim reckons the popularity of the Standard BTO projects offered in this month’s sales exercise can be chalked up to 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 uniform and pretty 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, pulled in 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.
An artist impression of Crawford Heights. (Picture: HDB)
Meanwhile, the only Prime project offered this month was Crawford Heights in the Kallang/Whampoa estate. The estate will also have two Plus projects, Kallang View and Towner Breeze.
Overall, four-room flats for Prime and Plus BTO projects in the town, including those at Crawford Heights, saw an application rate of 2.6 for first-timer families, says Lim. This is slightly higher than the 2.1 application rate seen in June 2024’s BTO launch that offered the BTO projects Tanjong Rhu Riverfront I and II, which have fewer amenities.
But, Gafoor of PropNex observed that the mix of Plus and Prime projects in Kallang Whampoa in the October 2024 BTO outperformed 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 performed better than that of Bedok South Bloom and Bedok North Springs that 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 dampener on their buying decision, especially if the BTO project is in a choice location," says Gafoor.
He adds that unsuccessful applications can still look forward to the next BTO sales exercise next February which might see HDB offer about 4,960 new flats across five different projects. Among them will be the first BTO project in the newly announced Woodlands North Coast precinct.
Applications for the October 2024 BTO sales exercise close at 11:59pm on Oct 23.