Unlike past years which saw at least four Built-to-Order (BTO) sales exercises in total, 2024 will have just three: one each in February, June, and October.
However, with a total of 19,600 units being launched this year, this translates into more opportunities for applicants to secure a flat, plus greater freedom to take their pick from a larger pool of units and neighbourhoods.
In February alone, there were seven BTO projects launched across six towns: Choa Chu Kang (Rail Garden @CCK), Hougang (Tanjong Tree Residences @ Hougang), Punggol (Matilda Riverside), Woodlands (Woodlands Edge), Bedok (Bedok South Bloom & Bedok North Springs), and Queenstown (Tanglin Halt Courtyard).
Reflected as competitive, but healthy first-timer application rates for the February exercises, there was plenty of demand for 3-room and bigger units across the board. However, noticeably greater interest was registered amongst first-timer families at Tanjong Tree Residences @ Hougang (4.6), Bedok North Springs (3.3), and Tanglin Halt Courtyard (3.4).
Interest amongst second-timer families for 3-room and bigger units at these locations were also equally elevated, with the application rate reaching as high as 73.8 at Tanglin Halt Courtyard.
The same occurred for 2-room flexi units at all seven launches, resulting in an average application rate of 7.1 amongst first-timer singles; this was in no small part due to the high first-timer singles application rate of 16.3 at Tanjong Tree Residences @ Hougang.
So, what gives? The likely explanation would be that February 2024’s BTO launch is the second-last before the HDB flat reclassification takes effect, leading to more competition for units in mature estates that will be sorted under the Prime or Plus categories moving forward.
As such, there is reason to believe that June 2024’s BTO exercise – which is the final set of launches before the reclassification begins – will be highly popular, as this the final opportunity to secure a BTO flat in a mature location that isn’t subject to stricter resale regulations and a longer Minimum Occupation Period (MOP).
Adding 6,830 brand-new homes to the total BTO supply, June 2024’s launch will feature numerous sites that are located near transport nodes. These include: Kallang/Whampoa, Queenstown, Jurong East, Yishun, Tampines, and Woodlands.
In particular, the upcoming site at Yishun is expected to be highly-appealing to young families. Located at Chencharu, in the vicinity of the former ORTO leisure park, said site will feature 1,270 new BTO homes, thus forming a new residential enclave within the Khatib area.
Given the likely surge in popularity for BTO launches, some may wonder if the resale HDB market could see diminished performance in the coming months. While there is a possibility of this being the case, demand for resale flats will be supported by certain buyer demographics.
These include first-timers with urgent housing needs, second-timers who may find it harder to ballot for a BTO flat, buyers who have exceeded the HDB income cap, as well as those who prefer certain locations and/or flat types.
