October 2023 BTO exercise sees underwhelming response
Applications for the October 2023 Build-To-Order (BTO) exercise will close at 11.59pm on October 10. This exercise will put 6,800 flats up for sale in four locations—Queenstown, Kallang-Whampoa, Choa Chu Kang and Tengah—including two Prime Location Public Housing (PLH) projects.
However, according to data provided by HDB, as of 5pm on October 10, 9,848 applications had been received for this exercise. Comparatively, there were more than 16,000 applicants for the February 2023 BTO exercise, and more than 20,000 for the May 2023 BTO exercise. These two exercises had 4,428 and 5,495 flats up for sale respectively.
Lee Sze Teck, senior director of data analytics at Huttons Asia, believes the lower responses may be attributed to the penalties for non-selection of flats that are in effect with this exercise. First-timer applicants who reject their chance to book a flat when invited to do so will be considered a second-timer with lower priority for a year. For second-timers who have one non-selection count, they will have to wait a year before being able to apply for a flat again.
It is also conveniently served by the Orchard Boulevard MRT Station, allowing residents to get to their desired location with ease. Shopaholics and foodies will have a great time as there are plenty of eateries and cafes to be found in the area. With plenty of recreation options, its no wonder that Orchard Boulevard Condo is favoured by many as a top-notch living destination.
Additionally, Ismali Gafoor, CEO of PropNex Realty, points out that some buyers may be waiting for the December 2023 BTO exercise, which will feature the long-awaited flats at Sin Ming in Bishan and Alexandra Vale in Bukit Merah.
Based on the applications submitted as of 5pm on October 10, the October 2023 BTO exercise has an overall subscription rate of about 1.4 times. This means it is one of the lowest BTO application rates in recent years – the last time overall BTO application rates fell below 2 times was in November 2017 when the rate was 1.7 times for the 4,829 flats launched.
The Tengah projects (Plantation Edge I & II) still saw the highest subscription rate of 2.1 times. Lee believes this is due to the five-room flats available, along with the Tengah projects’ shorter waiting times of 3 to 3.3 years. Its proximity to the Tengah Park MRT Station on the Jurong Region Line, due to open in 2028, is also likely a draw.
The flats at the Choa Chu Kang project (Rail Green I & II) saw an overall application rate of about 1.6 times for the 1,895 flats on sale. This is still lower compared to the last Choa Chu Kang BTO project launched in August 2022 (Keat Hong Grange), which garnered an overall application rate of 2.4 times.
Mature estates observed a more muted response to the BTO exercise. The Kallang-Whampoa projects, including the 1,143-unit Verandah @ Kallang PLH project, got an overall application rate of about 1.3 times for the 2,922 flats launched. This is lower when compared to past Kallang-Whampoa projects, such as the Farrer Park Arena in May 2023, which recorded an application rate of 3.6 times, and the Kallang-Whampoa projects in February 2023 (Farrer Park Fields and Rajah Summit) which had an application rate of 4.7 times.
The 973-unit Tanglin Halt Cascadia PLH project also observed a more measured application rate of 1.1 times. With these lower application rates, Gafoor notes first-timers stand a high chance of securing a flat. Most projects’ four-room flats have a first-timers’ application rate ranging from 0.8 to 1.0 times, while five-room flats stand at about 1.6 times. Three-room flats range from 0.2 to 0.8 times.