Latest BTO exercise has lowest number of applicants, particularly first-timers, since 2020; application rates 'stabilising': HDB
SINGAPORE — The February 2023 Build-to-Order (BTO) sales exercise has received the lowest overall number of flat applicants, particularly first-timers, in three years, the Housing and Development Board said in a statement on Monday (March 6).
This latest exercise included launches in Tengah, Jurong West and Queenstown.
For example, HDB said, a total of 12,493 applicants applied for three-room and bigger flats in this latest BTO exercise, of whom 7,513 were first-timers.
In comparison, there were 20,252 applicants for such flats in the February 2020 exercise, of whom 14,145 were first-timers.
This means that of the total number of applicants, 60.1 per cent of those applying for such flats were first-timers in the current BTO application exercise, compared to 69.8 per cent of first-timers in the February 2020 exercise.
HDB said that these are among several "early indications" that BTO application rates have reduced and are stabilising.
The issue of BTO flat supply and demand has been a hot button topic of late, with the Government unveiling several measures during the Budget debate to prioritise certain applicants, such as first-timers and those with families, so that they have an increased chance of securing a flat.
It has also tightened penalties for BTO applicants who are invited to book a flat but then do not do so, with the new rules to start from the August BTO exercise this year.
HDB said that as of 11am on Monday, the median application rate for the February BTO exercise among first-timer applicants for three-room and bigger flats is 1.8.
This is close to the previous BTO sales exercise in November last year, which had double the flat supply of the current launch.
The lowest median application rates in HDB’s quarterly sales launches in the past three years are 1.8 and 2, which were during the November 2022 and February 2021 BTO sales exercises respectively.
The current BTO sales exercise will close at 11.59pm on Monday.
HDB added that first-timer applicants in several estates, such as in non-mature estates Jurong West Crystal and Brickland Weave in Tengah, as well as mature estates like Ulu Pandan Glades in Queenstown, will have a good chance of securing a flat.
"This is because of the low first-timer application rates of between 0.2 and 1.8 across the various flat types ranging from two-room flexi to five-room flats, and the average rejection rate of 40 per cent at the flat selection stage experienced in the past," said HDB.
HDB added that among these projects, successful applicants of Jurong West Crystal and Brickland Weave will also be able to move into their new homes earlier, as they have relatively shorter waiting times of about 3.9 years and four years respectively.
"There are early indications that the BTO application rates have reduced and are stabilising," said HDB.
"We continue to encourage flat buyers to consider applying for BTO flats located in non-mature estates or projects with low application rates, to increase their chances of booking a flat."
First-timers who have been unsuccessful in two or more attempts for BTO flats in non-mature estates will be given an additional ballot chance at their subsequent application for a BTO flat in these estates.
HDB added that from its records, almost all first-timer applicants of BTO flats in non-mature estates had a chance of booking a flat within their first three tries and nine in 10 had a chance to book a flat within two tries.
