More than 4,000 BTO flats launched for sale in first of three exercises for 2024

SINGAPORE: A total of 4,126 Build-to-Order (BTO) flats were launched for sale on Wednesday (Feb 21) under the Housing and Development Board's (HDB) first BTO exercise of the year.

The flats are in seven new projects in different estates - Bedok, Choa Chu Kang, Hougang, Punggol, Queenstown and Woodlands.

One of the projects - Tanglin Halt Courtyard - is offered under the Prime Location Public Housing model, which comes with stricter resale conditions. 

In addition to the BTO flats, 1,588 Sale of Balance Flats (SBF) units are available under the February sale exercise, located across various towns and estates.

It was previously announced that HDB will hold three instead of four BTO launches in 2024, with 19,600 new flats to be launched in total this year.

“Having three BTO launches instead of four means that home buyers can look forward to a bigger housing supply, and a wider range of flats and locations, at each of the BTO sales launches,” HDB said.

“Applicants will thus have a higher chance of success in finding a flat that meets their budget and needs.”

A wider gap between sales launches will also provide applicants with greater certainty as it reduces the extent of overlaps between flat selection exercises, it added.

HDB said it will extend the seven-day application window for sales exercises to eight days with effect from this exercise “to allow more time for applicants to make an informed choice”.

FLATS FOR DIFFERENT BUDGETS, NEEDS

Among the projects offered in the February BTO exercise, five will have a waiting time of less than three-and-a-half years, said HDB.

Home buyers looking to move into their flats sooner can consider applying for units in Bedok, Hougang, Punggol and Woodlands.

“A wide selection of flats, ranging from two-room to five-room flats, is offered to meet diverse housing needs and budgets,” HDB said.

All new flats are priced with “significant market discounts” to ensure affordability, and as a result, selling prices are “considerably lower” than the transacted prices of comparable resale flats, it added.

Eligible first-timer families can benefit from the Enhanced CPF Housing Grant (EHG) of up to S$80,000 (US$59,600).

With the grant, flat buyers will be able to buy a three-room flat at S$127,000 or a four-room flat at S$240,000 in the non-mature estate of Choa Chu Kang, and service their monthly mortgage payments using their CPF monthly contributions without cash payments, HDB said.

Buyers looking to get a four-room flat in the mature estate of Bedok, meanwhile, can expect prices to start at S$406,000 after grants.

Property analysts expect the two projects in Bedok to be popular with home buyers. 

Bedok North Springs, for instance, is near Bedok Reservoir MRT station.

"There is still a lack of new flats in this area as there have only been two launches in Bedok in recent years," said OrangeTee Group's chief researcher and strategist Christine Sun.

"Some couples may apply for a flat here as their parents could be staying in condos nearby, as many condos have been built along Bedok Reservoir Road and Tanah Merah. Moreover, this project offers five-room flats, which will attract families looking for bigger flats."

PRIME LOCATION HOUSING

Among the flats on offer at the prime location project, Tanglin Halt Courtyard, 20 per cent will be set aside for first-timer families and 2 per cent for second-timer families under the Married Child Priority Scheme.

This is two-thirds of the usual quota for BTO flats in mature estates, said HDB.

As with BTO flats, PLH flats are priced lower than comparable resale flats, considering the location, individual flat attributes and prevailing market conditions, said HDB.

“Given that new flats in prime locations naturally command higher market values, these PLH flats will be priced with additional subsidies on top of the substantial market discounts applied across all BTO flats,” it added.

“This will ensure that flat prices remain affordable for a wider range of Singaporeans.”

Huttons Asia's senior director for data analytics, Lee Tze Teck, said Tanglin Halt Courtyard may not attract many applicants as the last PLH project, Tanglin Halt Cascadia, saw application rates of less than 1.

This is probably due to the high price, resale restrictions and distance from the city centre, he added.

Ms Sun noted that more than 11,000 PLH flats have already been launched in the Queenstown area. "The large supply of PLH model flats may pose as stiff competition for sellers in the future," she added.

PropNex CEO Ismail Gafoor had a different view, however, noting that Tanglin Halt Courtyard is the smallest PLH project launched since the scheme started in November 2021.

"In view of the smaller number of units, we expect the application rate for this latest PLH development to be healthy – helped also by the fact that applicants will be drawn to the range of facilities on-site, being an integrated project, as well as its proximity to the Commonwealth MRT station," he added.

SALE OF BALANCE FLATS

About 12 per cent of the SBF units on offer in February have been completed, while the rest are in various stages of construction, HDB said.

Like BTO flats, these are heavily subsidised and priced considerably lower than comparable resale flats.

APPLICATIONS FOR FEBRUARY 2024 EXERCISES

Applicants who wish to participate in the February exercises must have valid HDB flat eligibility (HFE) letters when they submit their flat applications.

Flat applications can be made online via the HDB Flat Portal from Wednesday until Feb 28.

Applicants can only apply for one flat type or category in one town under either the BTO or SBF exercise. They do not need to visit HDB Hub to make their applications.

HDB will shortlist applicants using a computer ballot and not on a first-come-first-served basis. As such, there is no need to rush to submit applications, the Housing Board said.

The next BTO exercise will be held in June, with HDB set to offer about 6,800 flats in Jurong East, Kallang-Whampoa, Queenstown, Tampines, Woodlands and Yishun.

“The supply will be subject to review, as project details are firmed up closer to the launch date,” HDB said.

It advised prospective flat buyers who are interested in participating in the June exercise to apply for their HFE letters early and submit all required documents by May 15.