November 2022 BTO exercise sees lower application rates
The highest application rates in the November BTO exercise were captured for the 3- including four-room flats under the Prime Location Public Housing (PLH) Model property in the older Kallang/Whampoa property. 4,561 applications were obtained for the 405 four-room apartments offered, which figures out to an application rate of 11.3. For the three-room flats, 550 applications were acquired for the 72 units released, translating to a 7.6 application rate.
Sun connects the lower quantity of applicants to a number of factors, featuring purchaser demand being sidetracked to the Sale of Balance Flats (SBF). Pointing out information launched by HDB, she mentions that 25,350 applications were acquired for the 1,071 SBF units offered in the November revenues exercise, converting to an application rate of 23.7. According to Sun, the more powerful need for SBF units indicate a preference by buyers for condos with a much shorter finish duration. “The majority of SBF apartments might be accomplished faster than recently released BTO flats in the exact same community because they are introduced in earlier phases,” she mentions.
Besides the Kallang/Whampoa PLH apartments, condos in Queenstown, such as both PLH and non-PLH units, were likewise prominent among customers, explains Lee Sze Teck, higher supervisor, research at Huttons Asia.
Christine Sun, leading vice president of research study and even analytics at OrangeTee & Tie, mentions that the number of applications in November fell by 37.2% matched up to the August exercise. “This is the lowest general BTO application cost since September 2019 with an application ratio of 2.1,” she pointed out.
Nonetheless, OrangeTee & Tie’s Sun highlights that PLH condos in Kallang/ Whampoa were more preferred than those in Queenstown, possibly due to their better closeness to the downtown center. “This shows that there could be some customer resistance if the borders of PLH model flats are forced too far inland, also not everyone is ready to trade a more area for a lengthy lowest occupation duration,” she observes.
The number of applications obtained works out to an overall application price of 2.5. This is less than the 7.8 application price registered for the August 2022 BTO sales exercise, when 39,136 applications were acquired for 4,993 debuted condos.
From a full-year point of view, OrangeTee & Tie’s Sun highlights that the total number of candidates for all BTO as well as SBF sales exercises this year clocked in at 167,119, 16.3% higher than the 143,706 applicants logged in 2021. In terms of BTO open, the variety of applicants boosted by 22.6% y-o-y in 2022 to 117,251, while the variety of SBF applicants boosted by 3.7% y-o-y to 49,868.
Some other reasons for the lower BTO applications might feature the cooling measures that entered effect on Sept 30. According to Sun, several buyers may be preparing for costs in the reselling market to drop, also are thus holding off on purchasing a BTO flat in order to acquire a finished home in the alternate market.
Among the non-mature estates in the release, which makes up Bukit Batok, Tengah as well as Yishun, five-room flats in Tengah observed the greatest rate of interest, with 2,849 applications received for the 670 units available, or an application price of 4.3. Huttons’ Lee attributes this to buyers pursuing larger units, which give additional flexibility to accommodate combination job and home-based learning events. “Tengah has constantly drawn in lots of consumers for its sustainability style and proximity to primary work facilities in Jurong East Regional Centre along with Jurong Innovation District,” he includes.
The November 2022 Build-To-Order (BTO) sales exercise finalized on Dec 2 with 24,562 requests acquired, according to information launched by HDB. HDB is providing 9,655 flats for sale under the exercise, getting the biggest offering to day for a single launch.
From a supply perspective, the range of BTO units introduced this year jumped by 35.5% y-o-y to 23,184 units, while SBF units launched slipped 29.6% y-o-y to 3,023 units. Altogether, units introduced in 2022 amounted to 26,207 apartments, up 22.5% y-o-y.