Fewer applications for February 2025 BTO exercise as sale of balance flats divert demand

/ EdgeProp Singapore |

February 17, 2025 8:09 PM SGT

Among the February BTO projects, Tanjong Rhu Parc Front, a Prime category project in the Kallang-Whampoa town, saw the strongest response (Picture: HDB)

The February Build-To-Order (BTO) and Sale of Balance Flats (SBF) exercises, which saw 5,032 BTO flats and 5,590 SBF units launched for sale on Feb 10, will close today (Feb 17) at 11.59pm.

As of 5pm, data published by HDB shows there were 34,444 applicants for both the BTO and SBF units, which total 10,622 flats.

For the BTO flats, 12,431 applications were received for the BTO units, translating to 2.5 applicants for every flat. The figure is lower than the 4.2 application rate registered in the October 2024 BTO launch, comments Christine Sun, chief researcher and strategist for OrangeTee Group.

Ismail Gafoor, CEO of PropNex, adds that this is the lowest overall application rate since the December 2023 BTO exercise, which garnered an application rate of 2.2 times. "We think the concurrent SBF exercise – the largest to date - may have siphoned some applicants from this BTO exercise," he says. A total of 5,590 SBF units were launched in February, with 22,013 applications received as of 5pm on Feb 17, reflecting a 3.9 application rate.

Eugene Lim, key executive officer at ERA Singapore, adds that the SBF units likely diverted demand away from the BTO flats as the former offer shorter waiting times and are available in a wider range of locations.

Among the February BTO projects, Tanjong Rhu Parc Front, a Prime category project in the Kallang-Whampoa town, saw the strongest response, with an overall application rate of 2.6 for three-room flats and 5.4 for four-room flats as of 5pm.

“These rates are higher than the 2.0 and 3.1 application rates recorded for the previous BTO project at Tanjong Rhu Riverfront I and II [launched in June 2024],” says OrangeTee’s Sun. The higher rate is likely due to Tanjong Rhu Parc Front having fewer units available, along with lower prices compared to the previous project, she adds.

In comparison, Stirling Horizon, a Plus category project in Queenstown, saw a more muted response. Four-room flats at the project received an application rate of 2.5, much lower than the 9.8 received for the previous BTO project in Queenstown, Holland Vista, that was launched in June 2024, Sun points out.

Sun believes Holland Vista saw a stronger response due to its proximity the the MRT and other amenities, in addition to Stirling Horizon’s longer waiting time of over four years, among other factors.

The projects in Yishun logged application rates of 1.0 to 1.3 for three- to five-room flats, while the sole project in Woodlands registered an application rate of 0.9 for three- to five-room flats.

Lee Sze Teck, senior director of data analytics at Huttons Asia, says that the SBF units launched in February included over 700 flats in Woodlands and Yishun, which he believes may have impacted application rates for the BTO flats in those towns.

Meanwhile, two-room flexi flats continue to see robust demand from singles. February BTO flats of this type achieved a median application rate of 4.8 for first-time singles as at 5pm. While this is lower compared to the 26.3 application rate registered in the October 2024 exercise, many singles applied for two-room flexi flats under the SBF exercise, Lee says.

A total of 1,348 two-room flexi flats are available under the February SBF exercise, drawing 7,602 applicants. Application rates range from 53.2 to 393 across the various towns.

Lee expects the demand from singles for BTO flats, which surged following the government’s decision in October 2024 to allow singles to apply for two-room flexi flats in all estates, to remain resilient. “Pent-up demand and the rising number of singles may mean that it will take a long time before [the two-room flexi BTO] application rate falls below 2,” he predicts.

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