SINGAPORE - The latest HDB Build-To-Order (BTO) exercise held in October has created a buzz, wrapping up with a staggering 35,678 applications—the highest recorded for a BTO launch since August 2022!

With an overall application rate of approximately 4.16, which translates to about four applicants for each available flat, this indicates a steady interest in new housing. This volume, although impressive, still pales in comparison to August 2022's overwhelming application rate of 7.8 times, showcasing the fluctuating trends in Singapore's property market.

According to property analysts, several factors have contributed to this renewed interest. Shorter waiting times for certain projects combined with more accessible policies for singles and attractive locations have been pivotal in drawing potential homeowners. The October launch featured 8,573 flats categorized under a new framework, distinguishing between Standard, Plus, and Prime projects—criteria that factored proximity to the city center and transport connectivity.

These Plus and Prime flats come with stricter resale conditions, including a 10-year minimum occupation period (MOP) and a subsidy clawback of 6 to 9 percent. Nonetheless, they remain highly appealing to buyers. Ismail Gafoor, CEO of PropNex, affirms, “This is an encouraging sign that many buyers—first-timers and second-timers—are willing to commit for the long haul, especially when the project is in a choice location.”

Among these options, the Central Trio @ AMK emerged as the standout project, boasting an impressive application rate close to eight times, with 3,345 applicants vying for just 422 units. Gafoor noted that the rarity of new flats in the Ang Mo Kio area significantly contributed to this demand, as the previous BTO offering here garnered an even higher application rate of 14.1 times.

Projects in Bedok also experienced healthy demand, with three Plus offerings collectively drawing an average application rate of 4.9 times. In the Kallang/Whampoa region, a mix of Plus and Prime developments achieved an average application rate of 4.4 across all flat types.

The BTO exercise particularly shone for two-room flexi flats, which represented 22% of the overall offerings and drew significantly high interest, especially from singles—whose median application rate soared to 26.3 times.

This could be attributed to the introduction of new policies allowing eligible singles to apply for these flats across any location, priming the market for a competitive surge.

The 130 two-room flexi flats in West BrickVille @ Bukit Batok topped the charts with an astronomical application rate of 36.2 times, largely due to its favorable location near the upcoming Tengah Park MRT station.

Despite the spotlight on Plus and Prime flats, Standard flats are also stacking up interest.

Projects in Sengkang and Woodlands, for instance, saw application rates of about four times each, thanks to their proximity to public transport and essential amenities.

Notably, Standard flats made up a significant 58% of the total BTO units launched this month, gathering 18,573 applications overall. This balanced interest mitigates initial concerns that buyers might overwhelmingly favor the more exclusive options.

It’s also worth mentioning that 14 out of the 15 BTO projects were located within 800 meters of an MRT station, which certainly contributed to the attractive application numbers. However, not all projects were equally popular; the Taman Jurong Skyline in Jurong West was the most undersubscribed due to its less convenient location.

As larger flats continued to attract attention, 5,920 applicants competed for just 1,485 units of five-room and 3Gen flats, demonstrating a competitive application rate of around four times.

Gafoor noted that families, especially second-time applicants, are finding it more challenging to secure desirable larger units, such as those in Pasir Ris, where intense competition was observed.

Among hopeful applicants is Kelvin Lim, 57, who seeks to downsize from his current five-room flat appealing for a four-room unit in Bayshore. He emphasizes the flat's proximity to the city as a critical factor that would serve as a prudent investment for his son's future education.

With the demand for housing continuing to rise, the October BTO launch solidifies the ongoing trend in Singapore’s dynamically evolving property market. Keep an eye out—will upcoming launches maintain this momentum?