The latest Build-to-Order (BTO) flat launch by the Housing Board (HDB) in December saw a mixed response, with projects in Woodlands and Bishan emerging as the most sought-after among applicants. As the final update on Tuesday revealed, a total of 13,411 applicants competed for 6,057 flats, resulting in an overall application rate of 2.2.

Notable Trends in Application Rates:

HDB disclosed in a statement that the median application rate for first-time applicants seeking three-room or larger flats in December was approximately 0.8. This figure marked a significant drop compared to the median first-timer application rates during the pandemic years, which ranged from 2 to 6.8.

The majority of the first-timer application rates for three-room and larger flats across five BTO projects, excluding Woodlands and Bishan, were below 1. Analysts attribute this trend to various factors, including location, amenities, and transport accessibility.

Woodlands' High Application Rates:

Two projects in Woodlands, namely Urban Rise @ Woodlands and Woodlands Beacon, stood out with high application rates. Both projects, located in close proximity to Woodlands MRT Station, garnered substantial interest, with more than seven applicants vying for each five-room flat at Urban Rise @ Woodlands.

Mr. Chia JT, Managing Director of Propertyforsale Pte Ltd, emphasized the significance of these Woodlands projects being near existing MRT stations, making them more attractive to potential buyers.

The attractive entry-price of $423,000 for a subsidized 5-room BTO flat at Woodlands is a crowd pulling factor, given that resale HDB flats at Woodlands were transacted as high as $800,000 this year. 

Prime Location Housing (PLH) Projects and Subsidy Recovery:

Projects in Bukit Merah and Queenstown under the Prime Location Housing (PLH) model offered a subsidy recovery rate of 8 percent, higher than the 6 percent in previous PLH projects. This means that owners of these flats will need to return 8 percent of the resale price or valuation when selling their flats.

The PLH projects witnessed tepid interest in three-room flats, while four-room flats in Bukit Merah and Queenstown saw higher application rates of 1.44 and 1.35, respectively. The increased subsidy recovery rate may have contributed to reduced appeal for these flats.

Bishan's Exceptional Appeal:

In contrast to the PLH projects, the non-PLH project in Bishan garnered significant interest, boasting a short waiting time of less than three years. Analysts suggest that this indicates a preference for a central location without the restrictions imposed by PLH.

Market Stabilization and Future Expectations:

Industry experts, including Mr. Chia, note that the demand for new public housing appears to have stabilized. Moving forward, it is expected that overall application rates for BTO launches will generally range between two and three times, influenced by factors such as supply and location. 

Key Takeaways from December BTO Launch Results:

The December BTO launch showcased the enduring popularity of larger flats, particularly five-room flats. With close to 70 percent of flats launched in 2023 having wait times of four years or less, HDB is making strides toward returning to pre-pandemic norms.

As the demand for larger flats persists, HDB may consider increasing the supply of five-room flats in non-mature estates to meet the growing demand. Looking ahead, the February 2024 BTO launch is anticipated to offer approximately 4,100 flats across various estates, maintaining the momentum of HDB's housing initiatives.

Results for December BTO Flat Applications

BTO Project	Flat Type	No of Units	Number of BTO Applicants	BTO Application Rate
				First-Timers Families	Second-Timer Families
Non-Mature Towns/ Estates
Bukit Panjang (Petir Park Edge)	4-room	191	306	1.0	14.2
Jurong West (Jurong Arcadia)	3-room	80	108	0.7	5.2
	4-room	304	223	0.4	6.9
	5-room	174	247	0.7	17.3
Woodlands (Woodlands Beacon / Urban Rise @ Woodlands)	3-room	176	375	0.9	9.1
	4-room	614	1770	2.1	17.4
Woodlands (Urban Rise @ Woodlands)	5-room	260	1945	4.4	66.6
Mature Towns/ Estates
Bedok (Chai Chee Green)	3-room	97	156	0.7	21.8
	4-room	627	658	0.8	5.3
	5-room	260	462	1.1	13.8
Bishan (Sin Ming Residences)	3-room	105	177	1.0	15.2
	4-room	627	2293	3.2	13.4
Bukit Merah (Alexandra Peaks)	3-room	121	89	0.3	8.2
	4-room	730	1049	0.8	14.1
Queenstown (Ulu Pandan Vista)	3-room	218	78	0.1	5.9
	4-room	672	909	0.6	16.7
MEDIAN				0.8	14.0

 

BTO Flat Prices for December Exercise

Town	Project	Flat Type	Selling Price (Excluding Grants)	Selling Price (Including Grants ^)	Transacted Prices of Resale Flats Nearby #
Non-Mature Estates
Bukit Panjang	Petir Park Edge	2-room Flexi	From $110,000	From $30,000	-
		4-room	From $320,000	From $260,000	$520,000  -  $570,000
Jurong West	Jurong Arcadia	2-room Flexi	From $110,000	From $30,000	$310,000  -  $360,000
		3-room	From $207,000	From $132,000	$415,000  -  $450,000
		4-room	From $315,000	From $255,000	$525,000  -  $610,000
		5-room	From $431,000	From $386,000	$688,888  -  $760,000
Woodlands	Woodlands Beacon Urban Rise @ Woodlands	2-room Flexi	From $145,000	From $65,000	$320,000  -  $370,000
		3-room	From $251,000	From $176,000	$415,000  -  $470,000
		4-room	From $318,000	From $258,000	$530,000  -  $604,588
		5-room	From $468,000	From $423,000	$620,000  -  $718,000
Mature Estates
Bedok	Chai Chee Green	CCA * (30-year Lease)	From $80,000	From $4,000 +	-
		3-room	From $298,000	From $238,000	$440,000  -  $556,800
		4-room	From $421,000	From $376,000	$620,000  -  $872,000
		5-room	From $569,000	From $539,000	$830,000  -  $950,000
Bishan	Sin Ming Residences~	3-room	From $374,000	From $314,000	$440,000  -  $511,000
		4-room	From $519,000	From $474,000	$618,000  -  $800,000
Prime Location Public Housing Model
Bukit Merah	Alexandra Peaks	2-room Flexi	From $218,000	From $138,000	$455,000  -  $500,000
		3-room	From $380,000	From $320,000	$690,000  -  $763,888
		4-room	From $533,000	From $488,000	$920,000  -  $1,088,888
Queenstown	Ulu Pandan Vista	3-room	From $430,000	From $370,000	$655,000  -  $715,000
		4-room	From $598,000	From $553,000	$850,000  -  $1,040,000

Note: Selling prices are rounded up to the nearest thousand dollars.

^    Unless otherwise stated, the starting prices of the flats are based on 99-year leases. For illustration purposes, the assumed EHG amounts are:

1. Community Care Apartment: $80,000
2. 2-room Flexi flat: $80,000
3. 3-room flat: $75,000 in non-mature town and $60,000 in mature town and Prime Location Public Housing Model
4. 4-room flat: $60,000 in non-mature town and $45,000 in mature town and Prime Location Public Housing Model
5. 5-room flat: $45,000 in non-mature town and $30,000 in mature town

#     Details on the comparable resale flats can be found on the HDB Resale Flat Portal.