Press Release

Press Release

2 December 2022

FOR IMMEDIATE RELEASE

The November BTO & SBF exercises were closed yesterday. Below are some comments for your consideration please. You can also find our analyses/analytics/dashboards in our website (https://www.orangetee.com/home/masV2/bto).

BTO: https://services2.hdb.gov.sg/webapp/BP13BTOENQWeb/AR_Nov2022_BTO?strSystem=BTO

SBF: https://services2.hdb.gov.sg/webapp/BP13BTOENQWeb/AR_Nov2022_SBF?strSystem=SBF

Strong overall demand 

Demand for new flats remained strong for the November sales launch. Although the number of applicants for BTO flats dipped from 39,136 in August to 24,562 in November, 25,350 other applicants applied for the Sale of Balance Flats (SBF). Therefore the total number of applicants for the November sales launch stands at 49,912, which was 27.5 per cent more than the 39,136 applicants (BTO only) in the August exercise, but below the 51,201 applicants in May 2022 (BTO+SBF).  

More applicants applied for SBF units than BTO flats this time round. This may indicate that the completion period of flats remains a key consideration for buyers since demand is higher for SBF units. Most SBF flats may be completed faster than newly launched BTO flats in the same town since they are launched in earlier phases. As such, the overall application rate for SBF units is 23.7, a much higher rate than the 2.5 for BTO. This is the lowest overall BTO application rate since September 2019 with an application ratio of 2.1.  Therefore with a lower application rate now, applicants of BTO flats are likely to have a higher chance of success. 

Why are there fewer applicants for BTO flats

The number of applicants for BTO flats fell 37.2 per cent from 39,136 units in August 2022 to 24,562 units in November 2022, despite supply rising from 4,993 units to 9,655 units over the same period. 

The decrease in applicants may be attributed to a few reasons, such as demand being diverted to the SBF units and many Singaporeans having bought new flats over the past few launches. Some may have held back their purchases as they intend to buy a completed home in the secondary market, with resale prices possibly falling after the cooling measures. 

Limited options were available since most BTO flats in non-mature estates were in Yishun and Tengah. There are also limited choices in mature estates. Some may not want to buy PLH model flats that come with long MOP periods and more stringent selling criteria or choose non-PLH flats in mature estates that have longer completion periods. 

Analysis of buying trend 

The most popular BTO projects are at Kallang Whampoa and Queenstown. 5 room flats in non-mature estates are also popular.   

SBF units remain popular among buyers, possibly due to their shorter completion times and more locations to choose from. 

PLH model flats in Kallang/ Whampoa are more popular than those in Queenstown, possibly due to their closer proximity to the downtown core. This indicates that there could be some buyer resistance if the boundaries of PLH model flats are pushed too far inland, and not everyone is willing to trade a further location for a long MOP period. 

The total number of applicants rose 16.3 per cent from 143,706 in 2021 to 167,119 in 2022, while the number of applicants for BTO flats increased 22.6 per cent from 95,633 to 117,251 over the same period. The trends indicate that more Singaporeans are applying for new flats over the past year as new flats remain the most affordable housing option. The number of flats has also increased at a faster pace at 22.5 per cent, from 21,401 units in 2021 to 26,207 units in 2022, compared to the 16.3 per cent increase in total applicants over the same period.