So the October 2024 BTO exercise concluded just over a week ago, seeing a staggering 35,678 applications for the 8,500 flats up for sale.
This wraps up the largest sales launch of 2024 in terms of the number of flats available, the range of projects across estates, and the debut of the new Standard, Plus, and Prime flat classification system. In the same vein, the total number of applications was also the highest in recent years, and it is likely that we’ll continue to see strong demand for BTOs as interest rates get lower and more projects are drawn up in new locations such as Bayshore.
Now that the dust has settled from all the excitement surrounding the October 2024 BTO exercise, here’s a wrap-up of the application results, and what insights we can glean from it.
Overview of application rates
As with all BTO sales exercises, the HDB will publish the application data across the various projects and the unit types available.
To interpret the data, apart from the total number of units and the number of applicants, pay attention to the application rate. This shows the ratio of applicants for every one unit – a higher rate means higher competition for every unit. Rates that are 1 and under generally means that every applicant will be able to get a unit.
Image credit: HDB
The Merpati Alcove project in the Geylang estate is the only project that offers Community Care Apartments, which are specialised 2-room flats open only to applicants aged 65 and above.
Image credit: HDB
The October 2024 BTO exercise was also the first time singles could apply for 2-room flexi units without any restriction. Previously, they could only apply for such units in non-mature estates, which are typically located further from central Singapore.
Image credit: HDB
For 3-room and larger units, most of the Plus and Prime projects were oversubscribed which is more or less expected, given their favourable locations and the fact that more subsidies would be made available so that the units will be affordable. Also, it seems that restrictions such as the 10-year MOP did not really faze applicants that much.
Taman Jurong Skyline in Jurong West is the only undersubscribed estate
Even though the Taman Jurong Skyline project in Jurong West is the largest project with 1,840 units on offer and also the cheapest across all the BTO projects, all of its unit types were significantly undersubscribed with application rates less than 1.
Application rates for each unit type:
2-room units: 0 applications for first-timer families
3-room units: Application rate of 0.6
4-room and 5-room flats: Application rate of 0.4 each
Image credit: HDB
“Why was this the case? Well, for starters, it seems that location was a key factor in its lack of popularity. Even though it’s located right at the edge of the future Jurong Lake Gardens, which guarantees picturesque views, the lack of other amenities and school options other than Jurong Secondary School seems to weigh heavily on homebuyers’ minds.
According to ERA Key Executive Officer Eugene Lim,its subpar location was also because the closest MRT station is at least a 20-minute bus ride away. “This attests that convenience is king, especially as Singapore receives more infrastructure upgrades and people grow used to the convenience of a nearby MRT station,” he says.
Costa Riviera in Pasir Ris the star performer amongst Standard projects
Source: HDB
One project that certainly punched above its weight was Pasir Ris’ Costa Riviera projects. Across the 3-room and larger unit types, the application rates were:
3-room units: 2.4
4-room units: 3.6
5-room units: 6.7 (the highest application rate across the entire October 2024 BTO exercise)
One likely reason for its popularity is that both projects are conveniently located right next to the future Pasir Ris Integrated Transport Hub, which will host a bus interchange, the existing Pasir Ris MRT station, and two shopping malls in its vicinity. This presents unparalleled accessibility and convenience for commuting, as well as plenty of amenities and lifestyle options for residents.
Although Pasir Ris, like Jurong West, is far from central Singapore, it seems that having public transport options nearby is a higher priority for many BTO homebuyers than proximity to the city centre. Pasir Ris is a fairly mature estate that’s already built up with highlights such as the Pasir Ris Park, the Pasir Ris Central Hawker Centre, and more, with a future Cross Island Line MRT station on the way.
Fewer restrictions with single applicants see surge in interest
As we’ve outlined earlier, this latest BTO exercise is also the first time where singles can apply for 2-room flexi units without any restriction in where they can apply for. With the exception of Jurong West, all other estates with 2-room flats available saw application rates from as low as 13.4 in Sengkang to as high as 36.2 in Bukit Batok!
This surge in applications can likely be attributed directly to the HDB’s easing of rules. The results show that there is indeed a pent-up demand amongst singles for a place of their own, as moving out of the family home and getting a place of your own gains more popularity. This is despite the fact that the Plus estates come with a hefty 10-year MOP.
According to ERA, most singles’ priority is to buy the best possible 2-room flat in the location of their choice. This seems to be the case, given that they have to be at least 35 years old and so would have likely built up a considerable amount of savings and money in their CPF OA after working for a few years. As such, the price of a unit may not be so much of a concern for them. In addition, singles might choose to apply for a BTO in former ‘mature’ estates like AMK, Bedok or Kallang in order to live near their parents to make it easier to take care of them while enjoying the luxury of having their own space.
HDB completion times another key consideration amongst homebuyers
Apart from location and proximity to public transport options like an MRT station, another factor that is weighing heavily on homebuyers’ minds is the completion times of BTO projects. As you may know, this topic has been at the forefront of issues plaguing the BTO market in recent years, especially in the last couple of years when construction was significantly delayed, resulting in longer wait times for BTO projects to be completed.
Source: HDB
In this instance, the BTO units at Bukit Batok (West BrickVille) will be completed in under two years, which, according to the HDB, is “one of the shortest wait-time projects” it has ever launched. The next projects with the shortest completion times are Fernvale Sails and Fernvale Oasis in Sengkang, with a wait time of between 2 to 3 years.
The good news is that the HDB has committed to putting more of such projects on the market in the future. Termed Shorter Waiting Times (SWT) flats, the HDB previously committed in 2023 to launch 2,000 to 3,000 SWT flats per year by 2025, a target that has already been met this year. According to the HDB, it will continue to deliver affordable and quality flats safely, with a certain proportion of SWT flats every year to “better support the home ownership aspirations of Singaporeans” and to include a greater proportion of SWT flats with every new BTO supply.
A wrap-up of the October 2024 BTO launch
As the largest and final BTO sales exercise of 2024 draws to a close, all eyes now turn to the results of the applications, which will typically be made available in a couple of weeks’ time.
With so many changes to the BTO system (e.g., the new Standard, Plus, and Prime system, as well as the easing of restrictions for singles) debuting at this recent exercise, the results certainly give an early indication of the market’s reaction to these changes. For instance, the easing of restrictions for singles saw overwhelmingly positive reactions. Proximity to an MRT station seems to be of higher priority than the estate’s location, and the 10-year MOP appears to be largely a non-deterrent for most families.
The next BTO exercise will come around in February 2025, which will see about 5,000 BTO flats on offer across Kallang/Whampoa, Queenstown, Woodlands, and Yishun.
Perhaps more interesting is that it will also be the largest-ever SBF exercise, with over 5,500 flats across various towns/estates. In total, there will be more than 10,000 new flats on offer in the February 2025 sales exercise, which eclipses the 8,500 units of October 2024’s exercise! Stay tuned for more details.
In the meantime, if you’re one of the 35,678 applicants who put their names in for a flat this time around, all the best!
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