HDB has launched 4,692 new
flats across four towns - Bukit Merah, Toa Payoh, Tampines and Sembawang.
Another 4,320 Sale of Balance Flats have been launched for sale.
Key Trends
- Healthy
participation
Being
the first BTO exercise of the year and with three highly sought-after towns
(Bukit Merah, Toa Payoh and Tampines), we anticipate relatively healthy
participation among Singaporeans. The locations are not only convenient but
also boast a variety of amenities, including shopping centres, schools, parks,
and recreational facilities.
There
are also a few projects with a short completion period, including those in
Tampines and one site in Sembawang. For the Sembawang project, buyers may be
drawn to the short waiting time and sizable number of units available for sale,
which together improve the chances of successfully balloting and earlier
occupancy.
However,
some applicants may choose to wait for flats from the June BTO launch, which
features attractive sites at the Greater Southern Waterfront, as well as the
first new flats to be launched in over 40 years at Lakeview and Shunfu.
- Strong supply of
2-room flexi flats
We
expect strong buying interest from singles, given the high number of 2-room
flexi flats on sale. There are 1,246 2-room flexi units, accounting for 26.6
per cent of the total 4,692 BTO flats.
Many
of these 2-room flats are categorised as Plus and Prime flats, which entail
longer Minimum Occupation Periods (MOPs). As a result, buyers in these areas
are less likely to ‘flip’ their units, thereby reducing the likelihood that
younger applicants will purchase small flats in desirable locations solely for
investment purposes.
- Few 3-room flats
In
contrast, 342 3-room flats are available for sale, with some towns offering
none at all. This scarcity is likely to push buyers towards the resale market
if they wish to purchase a 3-room unit.
Impact on market and
prices
The resale market is likely to
encounter heightened competition not only from the BTO market, but also the
increasing supply of newly MOP flats projected over the next three years.
In the primary market, many
BTO flats now offer short waiting times, with several located in desirable
areas with amenities such as childcare centres and health facilities. For
buyers to secure BTO flats quickly and with some entailing additional facilities,
will be a game-changer. It fundamentally alters market dynamics, as immediate
occupancy and proximity to amenities or transport nodes were once primary
advantages of purchasing resale flats.
Consequently, older, less
well-located flats may experience greater downward pressure on prices from both
the BTO and MOP resale markets. However, recently completed flats that have
just reached MOP in prime locations may continue to attract strong demand. The
net effect may lead to a further slowdown in resale price growth for the
overall market this year, with some towns or areas even seeing price stagnation
or modest price declines.
Site Analysis
1. Tampines Nova - This
could be one of the most popular projects, due to its central location in
Tampines Central. Plum sites like this are rare, as there is limited land
available for new development in the Tampines Central area. Furthermore,
having a preschool integrated within the housing development is a unique
feature that provides great convenience for families with young children.
With only 255 units available, we anticipate high application rates for
this site. This project will attract a high number of singles, as it
offers 2-room flexi flats that are not available at the other Tampines
site.
2. Tampines Bliss - This
project may also attract a healthy number of applicants. With a waiting
time of just 1 year and 11 months, it is one of the fastest BTO projects
to be completed since 2018 and among the quickest in the last decade.
Although the project is not as close to MRT stations and amenities, it
offers a good balance of greenery and comfort without the buzz and crowd.
It is also close to various schools. Those who wish to have a higher
success in obtaining a unit in Tampines may also apply for this project.
For comparison, application rates of 4-room flats in Simei Symphony
nearby has been high at 6.7 for first-timer families and 28.6 for
second-timer families.
3. Kim Keat Crest - BTO
projects in Toa Payoh had traditionally been popular due to the proximity
to the city centre and Orchard Road. Previous projects like Kim Keat
Heights, launched in May 2022, received almost 1,800 applications for the
165 4-room flats, yielding an overall application rate of 10.9, which is
considered high. The Toa Payoh Ascent, launched in July 2025, received
almost 4,000 applicants for the 468 4-rooms, yielding an overall
application rate of about 8.5. Moreover, the project is located directly
across St. Andrew's Village, an integrated educational campus comprising a
primary and secondary school, as well as a junior college, offering a
holistic and seamless educational progression. As a result, the holistic
educational institution may appeal to families with school-going children.
However, the site’s proximity to a major expressway may be a drawback for
some buyers due to the dust and noise.
4. Redhill Peaks - These
flats are expected to be popular for its proximity to the Redhill MRT
station, CBD, and Orchard Road. However, the recent launch of many new
flats in Queenstown and Bukit Merah may impact the overall take-up rate of
these flats. For example, the number of applications for the new 4-room
BTO flats decreased from a peak of 6,560 for Bukit Merah Ridge and 7,916
for Alexandra Vale/Havelock Hillside, both launched in 2022, to 1,049 for
Alexandra Peaks, launched in December 2023 and 2,234 for Alexandra Vista/Alexandra
Peaks in July 2025. The trend indicates that the absorption rate of new
flats in Bukit Merah has declined over the years. Consequently, we expect
moderate interest for this project, though it may still be more popular
compared to other BTO projects launched in Sembawang.
5. Sembawang Voyage
and Sembawang Deck - As these
flats are located some distance away from the Sembawang MRT station, they
may be less appealing to certain buyers. However, as the development is
close to several primary and secondary schools, and with many 5-room flats
available, this could appeal to families with school-going children. With
more than 1,900 units offered from both projects, applicants will have a
higher chance of securing a flat.