SINGAPORE: First-time single home buyers have driven a sharp rise in applications for October’s Build-To-Order (BTO) flats, according to the Housing Board (HDB).
As of 5 pm on Oct 21, HDB received nearly 28,200 applications for all flat types in the latest sales exercise. This is the highest number of applications since the November 2022 launch.
According to The New Paper, HDB expects the total number of applications to reach between 35,000 and 40,000 by the time the exercise closes at 11:59 pm today, Oct 23.
This would mean around four to five applicants competing for each flat.
The October BTO exercise saw over 8,500 flats offered under a new framework, which categorises flats as Standard, Plus, or Prime.
These categories are based on location and access to transport, with stricter resale rules applied to Prime and Plus flats. These include a 10-year minimum occupation period (MOP) and a subsidy clawback of 6% to 9%.
This is also the first time eligible singles can apply for two-room flexi flats in any location. Previously, singles were limited to non-mature estates.
HDB said on Facebook the surge in applications “stems largely from pent-up demand among FT (first-time) singles,” making up about 20% of all applicants.
HDB also noted a similar trend in 2013, when first-time singles were first allowed to buy two-room flexi flats.
Demand was extremely high back then, with application rates reaching 58 times in the July 2013 BTO sales exercise.
The current surge mirrors that, though HDB expects demand from singles to stabilise as the supply of two-room flexi flats increases.
Another factor behind the high number of applications is the large proportion of flats with good attributes, such as proximity to MRT stations and the 2,000 shorter-waiting-time flats included in the launch.
The New Paper reported that as of 10 pm on Oct 21, two-room flexi flats in Bukit Batok were in high demand, with 29 applicants competing for each of the 130 available flats.
These flats have a shorter waiting time of about two years. Flats in Ang Mo Kio and Pasir Ris were also popular with singles, with a median application rate of 22.2 across all projects.
For first-time families, the median application rate for three-room and larger flats was 2.1, slightly higher than in the February and June 2024 launches.
HDB added, “We expect the final median FT application rate for the 3-room and bigger flats to be slightly higher than that of the Feb 2024 and Jun 2024 launches, but still remaining lower than pre-pandemic norm.”
Application rates for four-room flats across Standard, Plus, and Prime categories were “fairly uniform.”
Four-room flats in Ang Mo Kio, Bedok, and Kallang/Whampoa were oversubscribed, with about two to three applicants for each flat, according to HDB’s website.
Christine Sun, head of research at OrangeTee Group, pointed out the high demand among singles, especially for Standard and Plus flats.
The median application rate of 22.2 is much higher than in previous launches, where rates were 6.3 in October 2023 and 4.5 in August 2023.
Eugene Lim, key executive officer of ERA Realty Network, noted that singles applying for BTO flats must meet the S$7,000 income ceiling. For many, a two-room flexi flat will likely be their only property.
This makes location a top priority for these buyers, as they will not upgrade.
As such, they are generally not put off by the 10-year MOP for Prime or Plus flats, said Mr Lim.
Ms Sun added that high application rates in Plus projects, such as those in Ang Mo Kio and Kallang/Whampoa, show young people are willing to accept the longer MOP and stricter resale rules, even if the flats are not in prime locations.
Community care apartments saw lower demand, with many seniors opting for two-room flexi flats instead.
HDB said low application rates were also observed in some projects, giving hopeful buyers a better chance at securing a flat.
For example, first-time applicants for three-room and larger flats in the Standard project at Taman Jurong Skyline and three-room flats in the Plus and Prime projects in Kallang/Whampoa faced application rates below one. /TISG
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