November 2022 BTO exercise sees lower application rates
From a full-year perspective, OrangeTee & Connection’s Sun highlights that the complete variety of candidates for all BTO as well as SBF sales exercises this year appeared at 167,119, 16.3% greater than the 143,706 applicants logged 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 applicants increased by 3.7% y-o-y to 49,868.
The variety of applications got works out to an overall application rate of 2.5. This is less than the 7.8 application rate signed up for the August 2022 BTO sales exercise, when 39,136 applications were acquired for 4,993 launched condos.
The highest possible application prices in the November BTO exercise were captured for the 3- along with four-room flats under the Prime Location Public Housing (PLH) Model property in the mature Kallang/Whampoa property. 4,561 applications were obtained for the 405 four-room flats available, which turns out to an application rate of 11.3. For the three-room apartments, 550 applications were acquired for the 72 units launched, translating to a 7.6 application rate.
Sun associates the low amount of candidates to a couple of factors, featuring buyer demand being diverted to the Sale of Balance Flats (SBF). Pointing out information released by HDB, she points out that 25,350 applications were gotten for the 1,071 SBF units available in the November revenues exercise, equating to an application rate of 23.7. According to Sun, the stronger demand for SBF units suggest a preference by buyers for flats with a shorter finish period. “Most SBF condos might be accomplished quicker than newly launched BTO apartments in the very same neighborhood because they are launched in early phases,” she remarks.
Nonetheless, OrangeTee & Tie’s Sun highlights that PLH flats in Kallang/ Whampoa were a lot more popular than those in Queenstown, potentially as a result of their nearer distance to the downtown center. “This suggests that there could be several buyer resistance if the limits of PLH model condos are pushed as well far inland, plus not everyone is happy to trade an additional location for a lengthy minimum occupation period,” she sees.
One of the non-mature estates in the release, which comprises Bukit Batok, Tengah and Yishun, five-room condos in Tengah saw the greatest interest, with 2,849 applications received for the 670 units offered, or an application rate of 4.3. Huttons’ Lee attributes this to purchasers pursuing bigger units, which give additional adaptability to suit combination job as well as home-based learning events. “Tengah has constantly drawn in numerous consumers for its sustainability theme and closeness to major employment facilities in Jurong East Regional Centre and also Jurong Innovation Area,” he adds.
Christine Sun, top vice president of research and analytics at OrangeTee & Tie, mentions that the number of applications in November dropped by 37.2% matched up to the August exercise. “This is the lowest overall BTO application rate since September 2019 with an application rate of 2.1,” she pointed out.
Other factors for the reduced BTO applications might feature the cooling evaluates that entered result on Sept 30. According to Sun, some purchasers may be preparing for costs in the reselling market to fall, and are therefore holding back on acquiring a BTO flat just to get a finished home in the second market.
The November 2022 Build-To-Order (BTO) sales exercise closed on Dec 2 with 24,562 applications received, according to data launched by HDB. HDB is giving 9,655 condos up for sale under the exercise, getting the largest offering to day for a solo launch.
From a supply viewpoint, the range of BTO units released this year leapt by 35.5% y-o-y to 23,184 units, while SBF units released plunged 29.6% y-o-y to 3,023 units. Altogether, units released in 2022 completed 26,207 condos, up 22.5% y-o-y.
Apart from the Kallang/Whampoa PLH flats, apartments in Queenstown, that include both PLH and non-PLH units, were additionally popular amidst applicants, explains Lee Sze Teck, senior director, study at Huttons Asia.
