October BTO exercise: Which project will see the biggest demand?

Experts expect a higher number of applicants for the October BTO exercise.

Real estate experts expect the October BTO exercise to receive healthy demand from Singaporeans despite the new non-selection rules and estate reclassification imposed by the government.

“Overall demand will likely be healthy as many good sites near MRT stations or at the city fringe areas have been released,” OrangeTee said.

Huttons echoed this, saying: “The attractive locations of these BTOs may mean that there will be more applicants for each flat. There may also be more applicants applying for standard flats in mature estates which do not have restrictions like PLH flats. Overall the number of applicants may be higher for Oct BTO exercise.”

Huttons and OrangeTee, however, did not discount the effects of the new non-selection rules and estate reclassification.

“Due to the tightened rules for the non-selection of BTO flats, we expect a drop in applicants since those not ready to commit to a purchase or are uncertain about their buying decision will unlikely apply for a flat now. These may include young couples unprepared for marriage or considering other housing options,” Orangetee said.

“Young couples who do not want to jeopardise their future chances of getting a well-located flat will likely not apply flippantly now,” OrangeTee added.

Since there will be fewer applicants to apply after the non-selection penalty rule kicks in, OrangeTee expects “serious buyers and first-time families to have a higher chance of getting a flat.”

“First-time families with children are given an extra ballot, and more flats will be set aside. However, this group of buyers may be small,” OrangeTee said.

The reclassification, on the other hand, will likely lead to some couples holding back their applications.

“Some buyers who wish to avoid being subjected to the longer MOP and other new rulings may try to obtain a flat ahead of the estate reclassification that will take place in 2H 2024. Apart from PLH model flats, the new flats still have a 5-year MOP,” OrangeTee explained.

“Therefore, application rates for flats near MRT stations or city fringe areas may potentially see more applicants,” OrangeTee added.

Kallang/Whampoa and Queenstown

Huttons believes the four BTOs at Kallang/Whampoa and Queenstown will see more applicants than the other October projects.

“Verandah @ Kallang is a short walk to Kallang MRT station, close to the Kallang River and the Singapore Sports Hub. It is a short drive to the CBD and just 2 stops to Paya Lebar, a key employment centre. The KPE is next to it, making travel a breeze. The application rate for 4-room flats may be between 3 and 4 as the number of flats is more than double compared to Kallang Horizon,” Huttons commented.

For Tanglin Halt Cascadia, Huttons predict an application rate between 1 and 2, in line with PLH flats near BTO projects

“Tanglin Halt Cascadia is a PLH project as it is sandwiched between Ulu Pandan and Ghim Moh which have been identified as PLH locations. Furthermore, quite several flats at Blk 50 Commonwealth Drive have exceeded $1 million. There will be a new road to one-north making travel for those working there even more convenient. There is a site zoned for commercial and residential which will increase the amenities and attractiveness of the area,” Huttons commented.

Meanwhile, Rajah Residences and Tenteram Vantage may see a first-timer application rate of more than 3 for 4-room flats. 

“These flats, while not near an MRT station, are located in mature estates without the PLH flats restrictions. The two BTOs are up to 40 storeys in height thus giving residents on the higher floors a good view of the surroundings,” Huttons said.

Commenting on Rail Green I and II, Huttons said the BTO projects will likely appeal to larger families since it has 3-Gen and 5-room flats.

“There are plenty of amenities like Junction 10 and Hillion Mall. The Bukit Panjang Integrated Transport Hub is a short walk away. It may see a subscription rate of around 3 for 4-room flats among first timers.” Huttons commented.

Plantation Edge I and II  will see a subscription rate similar to Rail Green I and II, said Huttons.

“Tengah is gaining popularity among buyers. Furthermore, Plantation Edge I and II are right at the doorstep of the future Tengah Park MRT station. This makes travelling to the second CBD and Jurong Innovation District faster. The popular Princess Elizabeth Primary School is within 1km,” Huttons said.

OrangeTee, for its part, expects interest in 2-room Flexi flats in Kallang/ Whampoa, Choa Chu Kang and Tengah to continue to be robust, “even as the government has announced that they will ramp up the supply of 2-room flats and allow singles to buy flats across the island.”

"Demand for 2-room Flexi flats has been strong, with an average of three applicants applying for one flat since 2021,” OrangeTee added.