by OrangeTee & Tie Pte Ltd.

OrangeTee comments on June's BTO application results

BTO Launches

1. Highest number of applicants since November 2022 launch 

Based on the applications today at 2pm, the number of applicants is the highest since November 2022 (excluding Community Care Apartment applicants) at 24,179. The current application numbers are considered high, as there are only 6,938 flats offered now, whereas there were many more flats offered in November 2022 (9,410 units excluding CCA flats) then. 

In terms of application rates, the current rate is at 3.1, which is the highest number since May 2023 at 3.8.

2. Tampines GreenTopaz and Holland Vista are the most popular projects

Tampines GreenTopaz is popular as this is probably the last choicer location where buyers can still buy a new flat near the MRT station with a 5-year MOP and not be subjected to the new resale restrictions for plus flats. 5-Room flats were particularly sought after with the highest 7.9 application rate for first-timers and 100.3 application rate for second-timers. The higher application rates were due to their larger living space and rarity in mature estates. There is an upcoming Government Land Sales plot adjacent to this site, which will feature a sizeable commercial space, providing more amenities for residents in the area.

Some prospective buyers may view flats in Tampines GreenTopaz as a good investment because they will be able to sell their flats faster than future Plus flats in the same location, given the shorter Minimum Occupation Period (MOP). Moreover, their flats may fetch higher prices than future plus flats since future resale flat buyers are subjected to income caps. In terms of rental prospects, future plus flats will face much stricter rental rules such as not allowing owners to lease out the entire unit.

For Holland Vista, it is close to the Holland Village MRT station and close to Orchard Road. If they were to buy a private property in the same location, the buyer would likely have to pay more than two times the price. 

3. Higher application rates for PLH model flats

Holland Vista has a high overall 7.2 application rate (see table below), which is the highest since Kallang Horizon was launched in November 2022 with an application rate of 10.7. Tanjong Rhu has a lower application rate of 2.2 due to the larger number of flats offered, which makes the rate lower because of the large base. With a total of 4,588 applicants, this is also the highest number of applicants for the PLH model project since Kallang Horizon, which had 5,111 applicants. Therefore, the project can be considered popular as well.

For these two PLH model flat projects, the BTO prices are considered very attractive to buyers despite the higher subsidy recovery at 9 per cent. Many buyers are still proceeding with the purchase as the capital appreciation for such flats is likely to be higher than 9 per cent in future. Moreover, buyers will have to pay substantially more for a private property of similar size in the same location. For instance, the median price of a new condo in District 15 (Tanjong Rhu) for an 800-1000 sqft unit is about S$2.5 million now, while a resale condo costs about S$1.65 million, based on URA Realis data. In District 10, the median price of a new condo of similar size is about S$2.8 million while a resale unit is about $2.4 million.

4. Yishun Chencharu Hills emerges as 'dark horse'

The Yishun project has emerged as a dark horse with better-than-expected sales performance, since there are many more outstanding sites have been released in the same sales launch. The 2-room flexi flats yielded the highest application rate at 6.6 for first-timer singles, with a high 1,489 total applicants. More than 3,000 people applied for the 3-room and bigger flats, which is more than the other non-mature estates in Jurong and Woodlands. The good sales performance suggests that many young couples are receptive to residing in Chencharu, despite it being a new residential area in a non-mature estate.

For more news, research and information, 
OrangeTee Group
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