The October 2024 HDB Build-To-Order (BTO) exercise has seen a staggering response, with over 10,000 applications from singles for just 1,902 two-room flexi units. This surge comes after the recent policy change allowing singles to apply for two-room flexi flats across all estates, a significant shift from the previous restriction to non-mature estates. With 6,000 applications estimated to be from eligible singles, it’s clear that the demand from singles is immense and underscores a pent-up need for affordable, centrally located housing options.
One standout project in this BTO exercise was West BrickVille @ Bukit Batok, where first-timer singles drove the application rate to a high of 33.4 for two-room flats. This project’s appeal is bolstered by its location near the upcoming Tengah Park MRT station and its shorter waiting time of just two years. Another highly sought-after development was Towner Breeze, a Plus project in Kallang/Whampoa, with a 27.7 application rate among singles, indicating a strong interest in projects located in mature estates with excellent connectivity and amenities.
This exercise saw robust demand across all project types, with notable interest in Standard projects, which represented 58% of the total units offered. The Standard flats received a balanced share of applications, contrary to initial fears that they would be oversubscribed. Projects in Pasir Ris and Bukit Batok recorded particularly high application rates, driven by good locational attributes and shorter wait times.
The demand was not confined to just singles. For instance, Costa Riviera I & II in Pasir Ris attracted high application rates for larger units among families. The five-room/3Gen flats in this project saw an application rate of 6.3 among first-timer families, while second-timer families were even more enthusiastic, with an application rate of 130, underscoring the popularity of larger units in mature estates.
Overall, the total application rate for this BTO exercise was 4.0, compared to 3.3 in June 2024, indicating a rise in housing demand. Additionally, the Standard flats in mature estates remain a popular choice, even with the introduction of Plus and Prime flats in the BTO offerings.
Summary of Highlights:
- Over 10,000 applications from singles for 1,902 two-room flexi units.
- Policy change now allows singles to apply for flats in all estates, increasing demand.
- West BrickVille @ Bukit Batok saw an application rate of 33.4 among singles.
- Towner Breeze in Kallang/Whampoa attracted a 27.7 application rate among singles.
- Overall application rate for October BTO exercise rose to 4.0, up from 3.3 in June 2024.
- Standard projects, such as those in Pasir Ris and Bukit Batok, remain highly sought after.
- Costa Riviera I & II in Pasir Ris saw application rates as high as 130 among second-timer families.
Interpretation:
The October 2024 BTO exercise highlights a significant shift in housing demand patterns, especially with the newly relaxed rules allowing singles to apply for two-room flats across all estates. This policy change has unleashed a wave of applications from singles, who now have more options in mature estates, creating high demand for two-room flexi units. Additionally, the popularity of Standard projects underscores the continuing appeal of affordable flats with shorter waiting times in well-located estates.
With robust demand across various flat types and locations, it’s evident that prospective buyers are willing to commit long-term, even with the tighter restrictions and resale conditions attached to Plus and Prime flats. As we look ahead, future BTO exercises may need to include more two-room flexi units and Standard flats to meet this demand from both singles and families.
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Source: EdgeProp Singapore, CDL's Norwood Grand achieves 84% sales at an average price of $2,067 psf