Bigger flats in Choa Chu Kang, Tengah most popular among first-timers in Oct BTO exercise

SINGAPORE – Larger flats in Choa Chu Kang and Tengah have emerged as the most popular for first-timer families among those launched in the latest Build-To-Order (BTO) sales exercise.

On the whole, however, there was a marked slump in the number of applicants in October’s exercise, which was

launched last Wednesday,

compared with previous exercises.

As at 5pm on Tuesday, about 1.6 first-time applicants were vying for each of the 544 five-room and three-generation flats at Choa Chu Kang’s Rail Green I and II @ CCK, and each of the 313 five-room flats at Plantation Edge I and II in Tengah.

The Tengah projects and Rail Green I @ CCK have the shortest waits in this launch, at between three years and three years and four months.

At least 95 per cent of four-room and larger flats in non-mature estates, such as Choa Chu Kang and Tengah, are set aside for first-time applicants.

In contrast, there was muted demand for flats in the mature estates of Queenstown and Kallang/Whampoa, including two projects under the prime location public housing (PLH) model. This means all first-time applicants for flats in these estates will likely get a chance to select a unit this time around.

The first-timer application rate was below one for the 155 three-room flats and 818 four-room flats in Tanglin Halt Cascadia, a PLH project in Queenstown with the priciest units in this launch.

Across three projects in Kallang/Whampoa – Rajah Residences, Tenteram Vantage and Verandah @ Kallang – the first-timer application rate stood at one for the 2,452 four-room flats on offer. The rate was below one for the 198 three-room units on sale at Tenteram Vantage and Verandah @ Kallang.

Verandah @ Kallang is the other PLH project in this exercise.

Flat owners in the two PLH projects are subject to a 10-year minimum occupation period. They must also pay 6 per cent of the resale price or valuation, whichever is higher, to the Housing Board when they sell their homes on the open market for the first time.

In all, 6,800 BTO flats are on sale across eight projects in Choa Chu Kang, Kallang/Whampoa, Queenstown and Tengah. Applications will close at 11.59pm on Tuesday.

Those who get a queue number for this launch can expect to book their flat at the HDB Hub in Toa Payoh between January and November 2024.

PropNex Realty chief executive Ismail Gafoor said the overall application rates in October’s exercise could be one of the lowest for a BTO launch in recent years, at about 1.4 for the 6,800 units on offer.

“The last time overall BTO application rates fell below two was in November 2017, when the application rate came in at 1.7 times for the 4,829 flats launched then.”

Other property analysts said the drop in demand could be attributed to stricter rules for applicants who reject an offer to book units, which kicked in from this exercise.

These include the rule that applicants of BTO and Sale of Balance flats who get a queue position falling within the flat supply cannot apply for a flat in later exercises until after their booking appointment.

Those who do not select a BTO flat when invited will also have their existing applications for later exercises cancelled, in a move to ensure other applicants have a better chance at securing a flat.

Mr Lee Sze Teck, senior director of data analytics at real estate agency Huttons Asia, said the response to October’s exercise was underwhelming, with about 9,800 applicants vying for the 6,800 flats on sale as at 5pm on Tuesday.

In comparison, there were more than 20,000 applicants vying for 5,495 units in the May launch, and over 16,000 applicants gunning for 4,428 units in the February exercise, he noted. “Fearing being penalised, some applicants may have stayed out of this BTO exercise,” he said.

Home seekers may also be waiting for

December’s sales launch

to apply for the long-awaited BTO project in Sin Ming in Bishan, he added.

Ms Christine Sun, senior vice-president for research and analytics at real estate firm OrangeTee & Tie, said that with the new rules, applicants would have to put more thought into their decisions.

“They must consider carefully if they would still proceed with the purchase if they obtain an undesirable queue number. Young couples who do not want to jeopardise their future chances of getting a well-located flat will likely not apply flippantly now.”

Ms Sun also noted that application rates for PLH projects have dipped since February 2022, when 17.5 applicants vied for each of the four-room flats in King George’s Heights in Kallang/Whampoa.

Measures to help first-timer families

took effect from this exercise as well. These include setting aside more flats for those with Singaporean children aged 18 and below.