The recent Build-to-Order (BTO) exercise in June 2024 has garnered significant attention, with a record-breaking application rate of 3.1, the highest since May 2023. The Housing & Development Board (HDB) launched 6,938 flats for sale on June 19, and by June 26, 11:59 pm, there were 24,179 applications, marking an application rate that reflects the highest interest since November 2022.
Factors Driving High Demand
According to experts, several key factors have contributed to the sharp increase in applications:
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Impending Changes in Housing Classification: The upcoming October BTO exercise will introduce a new classification system for flats, categorized as Standard, Plus, and Prime. This uncertainty has pushed many to apply in the current BTO exercise, which has fewer restrictions on subsequent sales of flats.
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Attractive BTO Projects: Specific projects such as Tampines GreenTopaz have seen overwhelming demand. This project, located in a mature estate near an MRT station, attracted over 2,100 applicants for its 214 four-room units and 174 five-room units. It offers a five-year minimum occupation period (MOP) and is part of a future mixed-use development with commercial amenities, making it highly desirable.
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Prime Location Public Housing (PLH) Model Flats: Projects like Holland Vista in Queenstown and Tanjong Rhu Riverfront I and II in Kallang and Whampoa were popular despite their higher subsidy clawback rate of 9%. The attractive locations and potential for significant capital appreciation drove interest, with Holland Vista’s application rate hitting about 9.0.
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Newly Introduced Chencharu Hills: The pilot project at the new Chencharu estate in Yishun has emerged as a surprising favorite. Its two-room flexi flats saw the highest application rate of 6.6 among first-timer singles, and the overall demand for its four-room and five-room units was robust. The estate's appeal is attributed to its proximity to Khatib MRT Station and future amenities, indicating a strong demand for new housing in non-mature estates.
Summary Highlights:
- June 2024 BTO Exercise: 6,938 flats launched, with 24,179 applications.
- Application Rate: Highest since May 2023, at 3.1 times.
- Tampines GreenTopaz: Attracted over 2,100 applicants per flat type, last BTO in a mature estate near MRT.
- PLH Model Flats: Holland Vista and Tanjong Rhu Riverfront I and II popular despite higher subsidy clawback.
- Chencharu Hills: Surprising high demand, especially among first-timer singles.
The latest BTO exercise underscores a persistent and high demand for public housing in Singapore, driven by impending changes in housing policies and the allure of strategically located projects. The robust application rates, especially for projects like Tampines GreenTopaz and Chencharu Hills, reflect buyers' preferences for convenient, well-located, and future-proof residential options.
As a real estate agent, staying updated with the latest trends and developments in the property market is crucial. Whether you're a prospective homebuyer or an investor, understanding these dynamics can help you make informed decisions. Contact me today for detailed insights, personalized advice, and updates on upcoming BTO projects and other real estate opportunities in Singapore.