The December 2023 Build-To-Order (BTO) exercise witnessed the launch of 6,057 HDB flats, drawing applications from seven towns. Woodlands emerged as the highlight, with strong demand for five-room flats.
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Key Points:
- Total Applications: As of December 11, 12,235 applications were received for the 6,057 flats, resulting in an application rate of 2.0 times.
- Demand Variations: While Woodlands experienced robust demand, the overall application rate was slightly higher than the previous October BTO exercise.
- Mild Response: Despite the increased rate, application figures remain subdued compared to the last two years, indicating potentially stabilizing demand for new public housing.
- Reasons for Subdued Response: Tighter non-selection rules since October have sifted out less serious applicants, providing a more accurate picture of actual BTO demand.
- Woodlands Appeal: Proximity to Woodlands MRT station and the town center contributed to the popularity of Woodlands projects.
- Flat Types in Demand: Five-room flats in Woodlands recorded the highest demand, with 1,783 applications for 260 units, indicating 6.9 times the demand.
- Overall Project Demand: Woodlands projects, offering various flat types, achieved an application rate of 4.1 times for 1,247 flats.
- Bishan's First BTO: Bishan's BTO project, the first in a mature estate with a waiting time under three years, attracted an overall application rate of 3.0 times.
- PLH Challenges: Prime Location Public Housing (PLH) projects in Bukit Merah and Queenstown faced challenges, with application rates of 1.3 and 1.0 times, respectively, due to tighter restrictions and longer completion times.
- Opportunity for First-Timers: The subdued response increases the chances for first-timer applicants to secure a BTO flat, especially for three and four-room units in various locations.
The December BTO exercise indicates a nuanced demand landscape. While Woodlands stood out as a preferred location, the overall subdued response and variations in application rates suggest that demand for new public housing is potentially stabilizing. The influence of tighter non-selection rules and the impact of different project characteristics, such as PLH restrictions, completion times, and waiting periods, play a
significant role in shaping applicant behavior. The varying demand across locations emphasizes the importance of project-specific factors in influencing homebuyer decisions.
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