HDB launched 8,573 BTO flats across 15 projects in the Oct 2024 BTO exercise. In 2024, HDB will have launched 19,637 units, 13.8% lower than 2023.
This BTO exercise is significant for 2 reasons. First is that HDB has replaced the framework of mature and non-mature estates in place since the 90s with Standard, Plus and Prime flats. Second is by allowing singles to buy 2-room flexi flats in any location.
This new classification will improve affordability and accessibility for buyers as additional subsidies are given to BTO flats in choicer and choicest locations. Giving singles the opportunity to buy 2-room flexi flats in any location allows for an inclusive society.
58.2% of the BTO flats in Oct 2024 BTO exercise are classified as Standard, 38.2% as Plus and 3.6% Prime flats. There is a good spread of flats across the 3 different BTO types thus giving applicants many choices.
Singles can buy 2-room flexi islandwide
From Oct 2024, singles are eligible to buy 2-room flexi BTO flats islandwide. This is a significant shift in housing policy to make public housing inclusive as singles are an integral part of society. Singles can now buy flats near their family members.
The application rate for 2-room flexi BTO flats in 2023 and 2024 range from 2.6 to 16.3. Although HDB has set aside up to 65% of almost 2,000 2-room flexi BTO flats for singles in Oct 2024 BTO exercise, it may not be sufficient to meet the expected surge in applications from singles. Popular BTO projects in Ang Mo Kio, Bedok, Kallang/Whampoa and Pasir Ris could possibly see more than 10 applicants from singles for each 2-room flexi BTO flats.
However, for singles whose income exceeded $7,000 per month, they can only buy either a standard or Plus resale flat. They are not able to buy a Prime resale flat. This may not come across as fair to these singles.
Restrictions on resale
Buyers of Plus and Prime flats need to fulfil a longer MOP of 10 years, are subject to a clawback subsidy and there is an income ceiling cap on buyers in the resale market.
The clawback subsidy for Prime flats is higher than Plus flats at 9% to account for the higher subsidy given at the point of purchase and to minimise the lottery effect. The clawback subsidy for Plus flats starts at 6% which was the same as the first PLH flats’ clawback subsidy.
Applicants however are unlikely to be deterred by the restrictions on Plus and Prime flats. Looking at past trends, they may be more inclined to buy first. Since the introduction of PLH flats in Nov 2021, the clawback subsidy of 6% has gone up to 9% in Jun 2024. This may go up further in the future if more subsidies are given to applicants.
Prices of Plus and Prime flats
There is a big difference of $54,000 to $73,000 between the prices of a 4-room flat in the Plus BTO, Central Trio @ AMK and Standard BTO, Central Weave @ AMK which was launched in Aug 2022. If not for the additional subsidies, the 4-room flats at Central Trio @ AMK should be similar to Central Weave @ AMK.
This price difference may be equated to a clawback subsidy of 6% imposed on Plus flats.
However, these additional subsidies for Plus and Prime BTO flats created a price anomaly in the market.
Some of the 4-room flats in Standard BTO projects are priced very close to Plus projects. This may entice some buyers to consider Plus BTOs because for a similar price, buyers get to stay in a centrally located area. It reinforces the concept of location being a key factor in the pricing of flats and may in fact draw more demand to centrally located flats.
For example, a 4-room flat in Costa Riviera I/II is similar to Central Trio @ AMK but higher than Kembangan Wave. Looking at it from another angle, should the buyer forego receiving additional subsidies for the freedom of being able to sell the flat within 5 years? Costa Riviera I/II are in a good location, near MRT interchange, enjoy plenty of amenities and potentially greenery and sea views.
In the Kallang/Whampoa estate, a 4-room flat in Crawford Heights is priced at $568,000 while a 4-room flat in Kallang View and Towner Breeze is priced lower at $539,000 and $522,000. Crawford Heights will receive more subsidies as a Prime BTO compared to Kallang View and Towner Breeze yet they are still priced higher. This means that HDB valued the slight difference in location at more than $30,000. Buyers will have to weigh whether it is worth paying an additional $30,000 and the higher clawback subsidy of 9% for the slight difference in location. It may be better to go for Towner Breeze which is priced lower and have a lower clawback subsidy than Crawford Heights.
With all these slight differences in pricing, some savvy buyers are likely to go for Plus flats than Standard or Prime flats. They get to enjoy the best of both worlds – having more subsidies than Standard flats and less restrictions than Prime flats.
Shorter Waiting Time BTO
Of the 15 BTO projects, 2,085 units in Fernvale Oasis, Fernvale Sails and West BrickVille @ Bukit Batok have a shorter completion period of less than 3 years.
These 3 BTOs with a shorter waiting time of less than 3 years may attract some localised demand from the resale market. It may provide some relief to the current situation where supply of resale flats is lower due to lesser number of flats that reached the MOP.
However, having a shorter waiting time may not be a big draw. Some applicants may still go for the centrally located BTO projects.
Popular BTO projects with applicants
Bayshore Palms, Bayshore Vista, Central Trio @ AMK, Costa Riviera I/II, Crawford Heights, Fernvale Oasis, Kembangan Wave and Taman Jurong Skyline could be popular with applicants.
Many applicants were waiting for the Bayshore BTO since HDB unveiled the master plan for the Bayshore estate in Oct 2023. There had not been a public housing project in East Coast since the first sea facing flats were built in Marine Parade in the 1970s. Such rare attributes may result in very high interest in Bayshore BTO project.
Bayshore Palms and Bayshore Vista are just across East Coast Park and units will have full height windows to maximise the views. With the TEL line nearby, residents can get to the Downtown in around 20 minutes. Temasek Primary School is within a short walking distance. In the future, there will be a mix commercial and residential development above Bedok South MRT station. These two BTOs are expected to be very popular. The prices of a 4-room flat in Bayshore Palms and Bayshore Vista start from $495,000 slightly higher than the prices at Bedok South Bloom. But it is fair considering that the Bayshore BTOs are rare sea facing projects. With only 1,006 4-room flats available, an application rate of more than 3 for each 4-room flat among first timers is very likely.
Central Trio @ AMK is opposite Central Weave @ AMK which was launched in Aug 2022. The 4-room flat price in Central Trio @ AMK starts from $481,000, lower than the 4-room flat prices in Central Weave @ AMK which is just opposite. Central Trio @ AMK is near to Ang Mo Kio Central where amenities and transport connectivity are within walking distance. However, it may appear unfair that Central Weave @ AMK which is closer to the train station is a standard BTO while Central Trio @ AMK is a Plus BTO. Central Weave @ AMK saw more than 8 applicants for the 4-room to 3-Gen flats. Being a much smaller BTO and limited number of 4-room flats, the application rate for 4-room flats among first timers could be as high as 8.
Costa Riviera I/II are the first BTO projects in Pasir Ris in 4 years. They are likely to be the last plots of land close to Pasir Ris MRT interchange station and bus interchange. Residents may have vast unblocked greenery and sea views. There are plenty of amenities in the vicinity like shopping malls, hawker centre, sports centre and Downtown East. The prices of a 4-room flat start from $481,000 which is much higher than the starting price of $374,000 of a similar flat in Costa Grove in 2020. At $481,000, applicants can choose to buy Central Trio @ AMK or Kembangan Wave. The previous BTO in Aug 2020, Costa Grove was popular with applicants. Costa Riviera I/II may see an application rate between 2 and 4 for the 4-room flats among first timers.
Crawford Heights is the first BTO in the area in more than 40 years. It is very near to Lavender MRT station, North Bridge Road market & food centre and just beside Marina Reservoir. Units overlooking the reservoir can also see the fireworks during National Day. The starting price for a 4-room flat in Crawford Heights in Kallang/Whampoa is $568,000, similar to the starting price for a 4-room flat in the recent Tanjong Rhu Riverfront I/II. While the attractive prices and location should attract many applicants, the lack of a primary school within 1km might reduce the popularity slightly. Applicants may opt for Towner Breeze which is priced lower and have a lower clawback subsidy. There may be between 3 and 5 first timer applicants for the 4-room flats.
Similar to Crawford Heights, there has not been a BTO in Kembangan in more than 30 years. Kembangan Wave will be integrated with healthcare facility and a community club and linked to Kembangan MRT station. The application rate for 4-room flats may exceed 3 among first timers.
The last BTO in Sengkang was in 2019 hence there could be pent-up demand for BTO flats. Fernvale Oasis could see good demand for the flats. There are food options along Jalan Kayu, employment hub like Seletar Aerospace Park and recreational facilities like Sengkang Riverside Park and Sengkang Swimming Complex. The application rate for a 4-room flat among first timers could be between 3 and 4.
Taman Jurong Skyline is the largest project in Oct 2024 BTO exercise. It is probably the first BTO project next to a national garden. The last BTO in Jurong was Lakeside View in May 2022 and there were 5 first timer applicants for each 4-room flats. Prices of a 4-room flat in Taman Jurong Skyline start from $290,000, lower than the prices in Lakeside View. The application rate for first timers may be around 2 to 3 as Taman Jurong Skyline is bigger than Lakeside View.
