Press Release

Press Release

05 December 2023

FOR IMMEDIATE RELEASE

Singapore, 5 December 2023 – The Housing and Development Board (HDB) has launched the December 2023 Build-to-Order (BTO) sales exercise today. 6,057 flats from eight sites across seven towns (Bedok, Bishan, Bukit Merah, Bukit Panjang, Jurong West, Queenstown and Woodlands) are available for application. 

The site at Bukit Merah and Queenstown will fall under the Prime Location Public Housing model. The Queenstown plot will be the last of three previously announced BTO projects to be launched at Dover Forest.

Overview

Demand for BTO flats is predicted to dip slightly in December in comparison to the October BTO sales exercise. The overall application rate could be below 2.  The decline in applications could be due to the introduction of non-selection rules which discourage less serious buyers from applying. Additionally, those who received a queue number in October will not be able to apply for a flat in December, leading to a decrease in the number of applicants, while the holiday season may contribute to a slower rate of buying activities since some potential buyers may be overseas. However, the HDB Flat Eligibility (HFE) eligibility period has been extended from six to nine months, which could reduce the number of applicants waiting for HFE approval.

HDB has already launched over 63,000 flats from 2021 to 2023, and future BTO flat supply may be lower. The government may launch an additional 37,000 flats over the next two years to meet the supply target of up to 100,000 flats from 2021 to 2025. This would translate to approximately 4,600 BTO flats for each sales exercise over the next two years, which is lower than the average of 5,700 BTO flats launched per exercise for the past seven sales launches.

Despite this possible decline in new flat supply, more buyers may still turn to the BTO market because construction has ramped up, and wait times have been reduced. With the non-selection penalty in place, buyers who are ready to commit have a higher chance of obtaining a BTO flat as this new ruling will discourage less serious buyers from applying, thereby increasing the chances of success for serious buyers. Moreover, BTO flats remain to be one of the most affordable housing in today's market. 

Project analysis

BTO projects at Woodlands, Queenstown, Bukit Merah and Bishan, could be most popular.

1. Woodlands (Urban Rise @ Woodlands and Woodlands Beacon) -Demand could be high as it is located near the Woodlands MRT station and Causeway Point shopping centre. The two MRT stations, plying the NSL and TEL, provide easy access to many parts of the island. The site has numerous amenities and schools in the vicinity.

The site offers 2-room and 5-room flats suitable for both singles and families. Singles can only apply for non-mature estates under the current ruling, so they will opt for 2-room flats here. Families may also choose the 5-room flats as the site is conveniently located near many primary, secondary, and tertiary schools. Buyers may consider purchasing now as future flats with similar attributes in the same area could be classified under the Plus category, which entails a longer 10-year MOP.

2. Queenstown (Ulu Pandan Vista) - We anticipate keen interest as it is the final release of new flats on the Dover Forest site. Applicants who failed in their previous applications will likely apply for this final round. The site is located beside the MRT station and has easy access to Ulu Pandan Park Connector. It is also situated near popular schools such as Singapore Polytechnic and NUS. It will be highly convenient for residents working in the one-north business park.

3. Bukit Merah (Alexandra Peaks) - Demand may be healthy as a good mix of 2-room flexi, 3-room, and 4-room flats are offered. The site is located within a mature estate, near the Redhill MRT station, Delta Sport Centre, and just opposite the popular Alexandra Primary School.

The BTO flats are offered at a very attractive price compared to private homes in the vicinity. For instance, nearby condos ranging from 800 to less than 1,200 sqft were transacted at a median price of S$1.7 million at Ascentia Sky, S$1.9 million at Alex Residences, and S$2.5 million at Artra in Q1-Q3 2023. HDB resale flats in Bukit Merah are similarly sold at much higher prices, at a median price of S$840,000 in Q1-Q3 2023 for 4-room flats and S$889,000 for 5-room flats over the same period. 

However, we do not anticipate very high application rates for this site as 8,213 PLH model flats have been launched and sold in Bukit Merah and Queenstown. Some may have applied in the previous PLH model flat launches.

4. Bishan (Sin Ming Residences) – Demand is expected to be healthy due to the lack of new BTO flats in the Sin Ming area. As many as 191 resale flats have been sold for at least a million dollars in Bishan so far; therefore the  high potential capital appreciation may appeal to some buyers. The area is also located near popular schools such as Ai Tong School and Catholic High School, which makes it attractive to families with school-going children.

5. Bedok (Chai Chee Green) - This site has 5-room flats and Community Care Apartments. However, it may not be the ideal choice for some buyers due to a lack of amenities and not being directly accessible to the MRT station, which is across the PIE.

The Community Care Apartments have been popular in the past because of their elderly-friendly features and the scarcity of such properties. The first Community Care Apartments in Bukit Batok were heavily oversubscribed, with 706 applicants vying for 169 units in Feb 2021. The second in Queenstown saw fewer applicants, with 383 people vying for 245 flats in November 2022.

We expect that there will be healthy demand for the Bedok Community Care Apartments, with possibly more applications than Queenstown but fewer than Bukit Batok.

6. Bukit Panjang (Petir Park Edge) - This site will be near two LRT stations (one is still pending). Demand for the 2-room flats may be strong since singles can only buy 2-room flats in non-mature estates under the current rules.

Some buyers may find the price of the new BTO flats attractive compared to new private homes. The Myst, a new project launched in the vicinity, was well received, selling 84.7% or 127 units of the 150 launched units within its launch month in July 2023 at a median price of S$2,056 psf.

7. Jurong West (Jurong Arcadia) - Similar to Bukit Panjang, demand may be stronger for 2-room and 5-room flats. Singles will opt for 2-room flats in Jurong West, which is a non-mature estate. Families may also choose 5-room flats if they want to enrol their children in the popular Rulang Primary School.