by OrangeTee & Tie Pte Ltd.

OrangeTee's comments on June 2024 BTO sales exercise

BTO Launches

Press Release

19 June 2024


Singapore, 19 June 2024 – The Housing & Development Board (HDB) has launched the June Build-to-Order (BTO) sales exercise.



6,938 new flats are released for sale today, marking the highest number of flats launched for sale since November 2022, when 9,655 units were released. With more flats available for sale this time around, the increased housing supply can help to lower the application rates further.

This is a positive move as there may be a higher number of applicants this time around. This will be the final BTO exercise offering flats in choicer BTO locations with a five-year MOP. For the October BTO exercise, such flats will fall under the new flat classification of Plus flats, which will entail a longer MOP and be subjected to stricter resale conditions. Certain projects like Tampines Green Topaz may stand to benefit and see higher application rates as potential buyers get to enjoy the flat with just a five-year MOP, while future flats in similar locations will be classified as Plus flats.

Moreover, more flats have shorter completion times, which will appeal to more young couples, especially those who are in more urgent need of a flat. Additional subsidies are also offered for PLH projects at Tanjong Rhu Riverfront I and II and Holland Vista, which means that more applicants can afford to purchase these prime flats.

Further, eligible young couples who can defer their income assessment for the Enhanced CPF Housing Grant (EHG) and HDB housing loan need only pay an initial downpayment of 2.5 per cent, down from 5 or 10 per cent previously. These young couples do not need to hold back their marriage plans even if they need more time to accumulate the finances to pay for the rest of the loan at a later stage.

This scheme may spur some young couples to apply for bigger flats as the lower downpayment is higher for bigger flats. For instance, for a flat costing S$500,000, the initial downpayment would be reduced from S$25,000 (5 per cent) to S$12,500 (2.5 per cent). Comparatively, the initial downpayment would be reduced from S$15,000 to S$7,500 for a flat that costs S$300,000. 

Project analysis

Queenstown (Holland Vista) – We anticipate strong demand for this project due to its excellent location. There are numerous amenities nearby, and the future apartments will be in close proximity to Holland Village MRT. This could be a cost-effective way for eligible buyers to acquire a property in a prime location and enjoy the advantages of living in a developed area. Additionally, a preschool and an active ageing centre will be built within the development, catering to the needs of families with young children and elderly members.

Kallang/Whampoa (Tanjong Rhu Riverfront I and II) – A total of 2,063 flats will be divided across two land parcels. Alongside the BTO flats, a range of amenities will be developed to cater to increased population. These amenities will include dining options, retail outlets, and a supermarket. Additionally, the nearby Kallang Wave Mall will offer added convenience for future residents. The development will be near the upcoming Tanjong Rhu MRT station along the Thomson-East Coast Line, providing easy access to the CBD and other parts of the island. Many young couples may be keen to apply if their parents are living in private homes in Tanjung Rhu, Katong or Marine Parade area.

Jurong East (Teban Breeze) – may be popular due to a lack of new flat supply. The most recent exercises were in Aug 2022 and Aug 2021. Prior to that, there was only one project launched in Sep 2011. The site is located near the future Jurong Region Line MRT station, and will be highly convenient for residents. The 2-Room Flexi flats in this exercise may also generate a lot of interest, as singles are not eligible to apply for 2-Room Flexi BTO flats across the island until the October 2024 BTO exercise. Additionally, 5-room flats will be available, and they have generally remained attractive due to their big living space.

Tampines (Tampines Green Topaz) – We expect high demand for the flats at this location. There are only 561 units available, consisting of 2-Room Flexi, 4-Room, and 5-Room flats. 5-Room flats may be particularly sought after due to their larger living space and rarity in mature estates. The area is well-served by several primary schools within a 1km radius and is conveniently located across from Tampines West MRT on the Downtown Line. Additionally, 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.

Woodlands (Marsiling Peak I & II) – The site is close to the Woodlands Checkpoint, which may appeal to applicants who regularly cross over to Johor Bahru or have relatives staying there. This project offers a large number of flats, with 1,609 flats available for balloting. As a result, overall application rates for this project may be lower with the large supply. However, we anticipate more applicants for the 2-Room Flexi and 5-Room flats based on their popularity in previous launches in Woodlands. The provision of 31 3Gen flats may also attract many applicants given the general scarcity of such flats.

Yishun (Chencharu Hills) – This is the first project launched within the new Chencharu housing area. Application rates for this site may be lower, given that more than1,200 units will be released for sale Although this site is further away from Khatib MRT station, more amenities will be built in the Chencharu area. However, some flat applicants may hesitate to apply in a neighborhood undergoing construction with approximately 10,000 homes being added to the Chencharu area. 

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