November 2022 BTO exercise sees lower application rates
In addition to the Kallang/Whampoa PLH apartments, apartments in Queenstown, such as both PLH along with non-PLH units, were additionally preferred amongst customers, mentions Lee Sze Teck, senior supervisor, research study at Huttons Asia.
Christine Sun, top vice president of research also analytics at OrangeTee & Tie, notes that the variety of applications in November fell by 37.2% contrasted to the August exercise. “This is the lowest overall BTO application rate since September 2019 with an application ratio of 2.1,” she emphasize.
However, OrangeTee & Tie’s Sun highlights that PLH apartments in Kallang/ Whampoa were more popular than those in Queenstown, perhaps as a result of their nearer proximity to the downtown core. “This shows that there might be some purchaser resistance if the limits of PLH model apartments are pushed too far inland, and not every person is prepared to trade a further place for an extensive minimum line of work period,” she observes.
The November 2022 Build-To-Order (BTO) sales exercise finalized on Dec 2 with 24,562 applications obtained, according to information published by HDB. HDB is supplying 9,655 condos available for sale under the exercise, getting the largest offering to day for a single launch.
One of the non-mature estates in the release, which makes up Bukit Batok, Tengah and Yishun, five-room flats in Tengah viewed the highest interest, with 2,849 applications received for the 670 units offered, or an application premium of 4.3. Huttons’ Lee associates this to purchasers seeking much bigger units, which offer more flexibility to fit hybrid work also home-based training activities. “Tengah has actually constantly attracted several applicants for its sustainability theme plus proximity to significant employment facilities in Jurong East Regional Centre along with Jurong Innovation Area,” he adds.
Other factors for the reduced BTO applications might feature the cooling evaluates that came into effect on Sept 30. According to Sun, many customers might be expecting costs in the resell market to decrease, and also are hence holding back on buying a BTO flat just to buy a finished house in the secondary market.
From a full-year perspective, OrangeTee & Connection’s Sun highlights that the complete number of applicants 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 release, the variety of applicants enhanced by 22.6% y-o-y in 2022 to 117,251, while the number of SBF candidates boosted by 3.7% y-o-y to 49,868.
Tembusu Grand condo floor plan
The highest application rates in the November BTO exercise were captured for the 3- along with four-room apartments under the Prime Location Public Housing (PLH) Model property in the developed Kallang/Whampoa estate. 4,561 applications were gotten for the 405 four-room apartments available, which works out to an application rate of 11.3. For the three-room condos, 550 applications were acquired for the 72 units started, equating to a 7.6 application rate.
Sun attributes the lower number of applicants to a number of factors, including customer demand being drawn away to the Sale of Balance Flats (SBF). Mentioning information released by HDB, she mentions that 25,350 applications were acquired for the 1,071 SBF units readily available in the November purchases exercise, equating to an application rate of 23.7. According to Sun, the more powerful need for SBF units suggest a preference by buyers for flats with a shorter completion duration. “Most SBF condos may be completed quicker than newly opened BTO condos in the same community because they are released in earlier phases,” she remarks.
From a supply viewpoint, the number of BTO units introduced this calendar year jumped by 35.5% y-o-y to 23,184 units, while SBF units released plunged 29.6% y-o-y to 3,023 units. Completely, units released in 2022 totalled 26,207 apartments, up 22.5% y-o-y.
The variety of applications got works out to a general request price of 2.5. This is lower than the 7.8 application rate registered for the August 2022 BTO sales activity, when 39,136 applications were acquired for 4,993 debuted flats.
