HDB BTO exercise attracts over 10,500 applicants; first-timers see favorable odds

SINGAPORE: The latest Housing and Development Board (HDB) Build-To-Order (BTO) application exercise has drawn significant interest, with 10,521 applicants as of 28 Feb. This marks a 21.6% decline from December 2023 levels, but analysts point out a higher overall application rate, attributing it to various factors.

Huttons’ senior director for data analytics, Lee Sze Teck, told Singapore Business Review (SBR) the increased application rate of 2.5 (up from 2.2 in December 2023), possibly influenced by HDB’s strategic adjustments, including a reduction in the number of BTO exercises to three in 2024. Lee also emphasized the shorter waiting time and lower supply compared to December.

Despite the elevated application rate, PropNex Realty CEO Ismail Gafoor suggested that BTO demand has generally stabilized, highlighting a moderate application rate compared to previous years. Gafoor told SBR that first-timer families stand a good chance of securing their desired flats, especially for 4-room flats in Choa Chu Kang, Punggol, and Woodlands.

However, second-timer families face tougher competition, particularly for 4-room and larger flats. Gafoor highlighted elevated application rates, ranging from 10.4 times in Punggol to an impressive 24 times in Hougang.

Gafoor and Lee both observed robust demand for 5-room BTO flats, with an application rate of 3.1 times. Lee attributed this to a post-pandemic need for more space. Demand for 4-room flats was also competitive, with an application rate of 2.9 times, notably overwhelming for Queenstown’s Tanglin Halt Courtyard.

Popular BTO projects included Tanjong Tree Residences @ Hougang, with over four applicants vying for each of the 122 4-room flats. In contrast, Rail Garden @ CCK had the lowest application rate, possibly due to the absence of 5-room flats and its proximity to the expressway and Gali Batu Depot/Bus Terminal.

For unsuccessful applicants, the next BTO exercise is set for June, offering nearly 7,000 flats across six towns and seven projects. Gafoor highlighted the inclusion of 3,000 4-room flats and 1,000 5-room flats, including locations such as Holland Village and Tanjong Rhu area.