Huttons’ comments on Jun 2024 BTO exercise

27 June 2024

The number of applicants for Jun 2024 BTO exercise jumped by more than 100% compared to the previous BTO. This is the highest number since Nov 2022 BTO exercise. It pushed up the application rate to 3.1.

The sharp jump is probably down to 2 reasons. The first would be the impending change in classification of flats to standard, plus and prime for Oct 2024 BTO. This is the last BTO where buyers will face less restrictions on the subsequent sale of their flat. It is uncertain how HDB will classify flats as plus and that may have pushed more buyers to apply for flats in June. The second reason would be the launch of highly attractive BTOs in Holland Vista, Tanjong Rhu Riverfront I/II and Tampines GreenTopaz.

For Holland Vista, it is a small project and is probably the last plot of land for public housing in Holland Village. Tanjong Rhu Riverfront I/II offers living by the river and in a highly coveted Tanjong Rhu precinct. Tampines GreenTopaz is near Tampines West MRT station and next to an upcoming mixed-use development.

As these three BTOs are in mature estates, the number of applicants in mature estates also increased.

There are 2 BTO projects in the North in June 2024 BTO exercise. Thus, the demand may have been spread across the 2 BTO projects in Chencharu and Woodlands. But the total number of applicants for Jun 2024 Woodlands and Chencharu BTO projects are more than 20% higher compared to Dec 2023 Woodlands BTO project, an indication that demand for homes in the North is strong.

The demand for 5-room flats among first-time buyers have stayed high. The application rate for 5-room flats in Feb 2024 range between 1.6 and 3.3. For Jun 2024 BTO, the application rate for 5-room flats range between 0.5 and 8.0 as of 5pm 26 Jun. This shows that applicants are looking for a big space to accommodate their future family needs.

Number of Flats Number of Applicants Application Rate
Nov 2022 9,655 22,495 2.3
Feb 2023 4,428 16,993 3.8
May 2023 5,495 20,778 3.8
Oct 2023 6,800 10,935 1.6
Dec 2023 6,057 13,414 2.2
Feb 2024 4,126 10,132 2.5
Jun 2024 6,938 21,827 3.1

Source: HDB, Huttons Data Analytics (data downloaded on 26 Jun, 5pm)