November 2022 BTO exercise sees lower application rates
The number of applications got works out to a total application rate of 2.5. This is less than the 7.8 application cost signed up for the August 2022 BTO sales activity, when 39,136 applications were obtained for 4,993 launched apartments.
In addition to the Kallang/Whampoa PLH apartments, flats in Queenstown, that include both PLH and non-PLH units, were also popular among applicants, points out Lee Sze Teck, senior director, study at Huttons Asia.
Christine Sun, top vice president of study and analytics at OrangeTee & Tie, notes that the variety of applications in November slipped by 37.2% compared to the August exercise. “This is the most affordable overall BTO application price from September 2019 with an application ratio of 2.1,” she emphasize.
The highest application prices in the November BTO exercise were documented for the three- including four-room apartments under the Prime Location Public Housing (PLH) Model project in the developed Kallang/Whampoa real estate. 4,561 applications were acquired for the 405 four-room flats available, which turns out to an application rate of 11.3. For the three-room flats, 550 applications were received for the 72 units released, converting to a 7.6 application rate.
Among the non-mature estates in the launch, which makes up Bukit Batok, Tengah and Yishun, five-room flats in Tengah saw the greatest rate of interest, with 2,849 applications acquired for the 670 units available, or an application rate of 4.3. Huttons’ Lee attributes this to purchasers looking for larger units, which supply more versatility to fit combination work and home-based training activities. “Tengah has actually constantly drawn in several clients for its sustainability style and even proximity to significant employment facilities in Jurong East Regional Centre along with Jurong Innovation Area,” he includes.
From a full-year point of view, OrangeTee & Connection’s Sun highlights that the overall number of applicants for all BTO and SBF sales exercises this year appeared at 167,119, 16.3% greater than the 143,706 applicants recording in 2021. In regards to BTO open, the variety of applicants increased by 22.6% y-o-y in 2022 to 117,251, while the variety of SBF candidates enhanced by 3.7% y-o-y to 49,868.
Some other factors for the lower BTO applications might feature the cooling evaluates that entered into impact on Sept 30. According to Sun, some purchasers might be anticipating rates in the resale market to drop, also are thus holding back on purchasing a BTO flat in order to get a finished home in the second market.
The November 2022 Build-To-Order (BTO) sales exercise finalized on Dec 2 with 24,562 applications received, according to data launched by HDB. HDB is providing 9,655 flats for sale under the exercise, accomplishing the largest offering to date for a single launch.
However, OrangeTee & Tie’s Sun highlights that PLH apartments in Kallang/ Whampoa were more preferred than those in Queenstown, perhaps because of their closer distance to the business district center. “This shows that there might be some customer resistance if the limits of PLH model apartments are pressed as well far inland, plus not many people is happy to trade an additional location for an extensive minimum line of work period,” she observes.
From a supply perspective, the number of BTO units introduced this year jumped by 35.5% y-o-y to 23,184 units, while SBF units released slipped 29.6% y-o-y to 3,023 units. Completely, units introduced in 2022 totalled 26,207 flats, up 22.5% y-o-y.
Sun attributes the reduced amount of candidates to a couple of causes, featuring purchaser demand being drawn away to the Sale of Balance Flats (SBF). Pointing out data released by HDB, she points out that 25,350 applications were received for the 1,071 SBF units available in the November revenues exercise, equating to an application rate of 23.7. According to Sun, the more powerful need for SBF units suggest an inclination by buyers for condos with a shorter completion duration. “Most SBF apartments might be completed faster than recently released BTO apartments in the exact same community given that they are released in earlier stages,” she says.
