Huttons’ Comments on October 2023 BTO

4 October 2023

HDB launched 6,800 BTO units over 6 projects for sale in October. Out of the 6 BTO projects, 4 are in the mature estates.

Demand for BTO flats has generally been strong as it offers Singaporeans the most affordable option to own a home. The change in rules penalising non-selection of flats when invited to from this BTO exercise may mean less applicants trying their luck. However on the other hand, 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.

The 4 BTOs at Kallang/Whampoa and Queenstown are likely to see more applicants. A total of 2,116 PLH flats at Verandah @ Kallang and Tanglin Halt Cascadia are launched for sale in Oct 2023. This is the third largest launch of PLH flats since Nov 2022 and May 2022 where 2,798 and 2,536 PLH flats, respectively were launched for sale.

It is not surprising that Verandah @ Kallang is a PLH project as it is similar to Kallang Horizon, a PLH project which was launched in Nov 2022. Kallang Horizon had an application rate of 6.4 for 4-room flats among first timers. 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.

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 a number of 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. The application rate may be between 1 and 2 which is in line with PLH flats in nearby BTO projects.

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 a 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. Rajah Summit which was launched in Feb 2023 had an application rate of 3.4 for 4-room flats among first timers.

Rail Green I and II are the first BTO projects to be integrated with the rail corridor. It also has 3-Gen and 5-room flats which will appeal to larger families. 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.

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. The subscription rate may be around 3 for 4-room flats among first timers.