New Reporter
11-10-23, 17:52
Application rate for October BTO exercise falls to lowest in recent years
Oct 11, 2023
SOME 9,848 applicants have applied for 6,800 new Build-To-Order (BTO) flats offered in the Housing and Development Board’s (HDB) October exercise, as at 5pm on Tuesday (Oct 10).
This translates to 1.4 applicants for each available unit, one of the lowest BTO application rates in recent years. Applications closed at 11.59 pm.
Analysts said the “underwhelming” response was a result of stricter rules governing the non-selection of units which take effect from this exercise.
PropNex Realty chief executive Ismail Gafoor said: “The last time overall BTO application rates fell below two times was in November 2017, when the application rate came in at 1.7 times for the 4,829 flats launched then.
“Subscription rates for past BTO launches were relatively healthy over the last two years between February 2021 and May 2023, ranging from 2.5 to 8.1 times.”
Huttons Asia’s senior director of data analytics Lee Sze Teck noted that in comparison, there were more than 16,000 applicants for the February 2023 exercise which featured 4,428 flats, and more than 20,000 applicants were gunning for 5,495 flats in the May 2023 exercise.
Christine Sun, senior vice-president of research and analytics for OrangeTee & Tie, said: “Due to the tightened rules for the non-selection of BTO flats, we had expected a drop in applicants since those not ready to commit to a purchase or are uncertain about their buying decision will unlikely apply for a flat now.”
“These may include young couples unprepared for marriage or considering other housing options,” she added.
From August 2023, first-time homebuyers who decline to book a flat when invited will be relegated to second-timer status for a year. If they then still decline to choose a flat, they will be blocked from HDB sales exercises for a year.
Second-timers have a much lower priority status and fewer opportunities to book a flat. Almost all – at least 85 per cent – of BTO flats are reserved for first-timers.
The new rules are intended to shorten the waiting time for flats and to ensure that those who need a home can secure their flats quickly.
The 6,800 BTO flats in October’s exercise were launched across eight projects in Choa Chu Kang, Kallang/Whampoa, Queenstown and Tengah.
Based on application numbers as at 5pm, most first-timer families who applied for the projects stand a high chance of securing a BTO flat.
Among first-timer families, five-room and three-generation flats were the most popular.
The first-timer application rate was 1.6 for the 544 five-room and three-generation flats at the Rail Green I and II @ CCK projects, as well as for the 313 five-room flats at Plantation Edge I and II in Tengah. Five-room flats were only available in the non-mature estates of Choa Chu Kang and Tengah for the October exercise.
The application rate for first-timer families vying for four-room flats, which were available in the Choa Chu Kang, Tengah, Kallang Whampoa and Queenstown BTO projects, ranged from 0.8 to 1.0 times.
However, application rates among second-timer families remain elevated. Five-room flats in Tengah and Choa Chu Kang had application rates of 27.0 and 15.3 times respectively among second-timer families.
Based on application rates as at 5pm, the most popular projects were Plantation Edge I and II in Tengah followed by Rail Green I and II @ CCK.
Gafoor said: “The warmer reception towards the Tengah BTO projects is not surprising. The interest came from applicants applying for the five-room flats, and the projects’ shorter waiting times of 3 to 3.33 years are also appealing.”
Meanwhile, the mature-estate projects experienced more restrained interest from applicants, with the Kallang Whampoa projects, including the Prime Location Public Housing (PLH) project Verandah @ Kallang, obtaining an overall application rate of 1.3 for the 2,922 flats launched.
The other PLH project, Tanglin Halt Cascadia at Queenstown, had an overall application rate of 1.1, said Gafoor.
Mogul.sg chief research officer Nicholas Mak also noted that the lower application rates in the October exercise could be due to the new requirement for applicants to have the HDB Flat Eligibility (HFE) Letter before they apply.
He said: “It requires at least several days to prepare this letter. It is possible that some BTO applicants were unaware of this new requirement until the start of this BTO exercise.”
“The low application rates in this BTO exercise could also attract more applicants for the next round,” he added.
Huttons’ Lee said: “Some applicants may be waiting for the December BTO (exercise) where there is a long awaited BTO at Bishan in Sin Ming, and one at Bukit Merah.”
https://www.businesstimes.com.sg/property/application-rate-october-bto-exercise-falls-lowest-recent-years
Oct 11, 2023
SOME 9,848 applicants have applied for 6,800 new Build-To-Order (BTO) flats offered in the Housing and Development Board’s (HDB) October exercise, as at 5pm on Tuesday (Oct 10).
This translates to 1.4 applicants for each available unit, one of the lowest BTO application rates in recent years. Applications closed at 11.59 pm.
Analysts said the “underwhelming” response was a result of stricter rules governing the non-selection of units which take effect from this exercise.
PropNex Realty chief executive Ismail Gafoor said: “The last time overall BTO application rates fell below two times was in November 2017, when the application rate came in at 1.7 times for the 4,829 flats launched then.
“Subscription rates for past BTO launches were relatively healthy over the last two years between February 2021 and May 2023, ranging from 2.5 to 8.1 times.”
Huttons Asia’s senior director of data analytics Lee Sze Teck noted that in comparison, there were more than 16,000 applicants for the February 2023 exercise which featured 4,428 flats, and more than 20,000 applicants were gunning for 5,495 flats in the May 2023 exercise.
Christine Sun, senior vice-president of research and analytics for OrangeTee & Tie, said: “Due to the tightened rules for the non-selection of BTO flats, we had expected a drop in applicants since those not ready to commit to a purchase or are uncertain about their buying decision will unlikely apply for a flat now.”
“These may include young couples unprepared for marriage or considering other housing options,” she added.
From August 2023, first-time homebuyers who decline to book a flat when invited will be relegated to second-timer status for a year. If they then still decline to choose a flat, they will be blocked from HDB sales exercises for a year.
Second-timers have a much lower priority status and fewer opportunities to book a flat. Almost all – at least 85 per cent – of BTO flats are reserved for first-timers.
The new rules are intended to shorten the waiting time for flats and to ensure that those who need a home can secure their flats quickly.
The 6,800 BTO flats in October’s exercise were launched across eight projects in Choa Chu Kang, Kallang/Whampoa, Queenstown and Tengah.
Based on application numbers as at 5pm, most first-timer families who applied for the projects stand a high chance of securing a BTO flat.
Among first-timer families, five-room and three-generation flats were the most popular.
The first-timer application rate was 1.6 for the 544 five-room and three-generation flats at the Rail Green I and II @ CCK projects, as well as for the 313 five-room flats at Plantation Edge I and II in Tengah. Five-room flats were only available in the non-mature estates of Choa Chu Kang and Tengah for the October exercise.
The application rate for first-timer families vying for four-room flats, which were available in the Choa Chu Kang, Tengah, Kallang Whampoa and Queenstown BTO projects, ranged from 0.8 to 1.0 times.
However, application rates among second-timer families remain elevated. Five-room flats in Tengah and Choa Chu Kang had application rates of 27.0 and 15.3 times respectively among second-timer families.
Based on application rates as at 5pm, the most popular projects were Plantation Edge I and II in Tengah followed by Rail Green I and II @ CCK.
Gafoor said: “The warmer reception towards the Tengah BTO projects is not surprising. The interest came from applicants applying for the five-room flats, and the projects’ shorter waiting times of 3 to 3.33 years are also appealing.”
Meanwhile, the mature-estate projects experienced more restrained interest from applicants, with the Kallang Whampoa projects, including the Prime Location Public Housing (PLH) project Verandah @ Kallang, obtaining an overall application rate of 1.3 for the 2,922 flats launched.
The other PLH project, Tanglin Halt Cascadia at Queenstown, had an overall application rate of 1.1, said Gafoor.
Mogul.sg chief research officer Nicholas Mak also noted that the lower application rates in the October exercise could be due to the new requirement for applicants to have the HDB Flat Eligibility (HFE) Letter before they apply.
He said: “It requires at least several days to prepare this letter. It is possible that some BTO applicants were unaware of this new requirement until the start of this BTO exercise.”
“The low application rates in this BTO exercise could also attract more applicants for the next round,” he added.
Huttons’ Lee said: “Some applicants may be waiting for the December BTO (exercise) where there is a long awaited BTO at Bishan in Sin Ming, and one at Bukit Merah.”
https://www.businesstimes.com.sg/property/application-rate-october-bto-exercise-falls-lowest-recent-years