Huttons' comments on Feb 2023 BTO exercise | Huttons Group

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Huttons’ comments on Feb 2023 BTO exercise

Huttons Research

As of 6 Mar 5pm, the number of applicants for Feb 2023 BTO exercise stands at 15,234. This is the lowest number of applicants since Sep 2019. In Sep 2019, the number of applicants was 7,179. This means that most buyers will stand a good chance of selecting their flats.

The lower number of applicants could be due to the less attractive location for BTO flats in non-mature estates. The recent bump up in housing grants for eligible first time buyers of resale flats may have diverted some demand away from the BTO exercise. There are more attractive BTO in May 2023 in Tengah, Bedok and Serangoon. Bedok and Serangoon are going to have their first Bto launch in about 7 and 9 years respectively. Buyers may be holding back for these more attractive launches. The non-selection penalty does not seem to have an effect on the number of applicants for Feb BTO.
The application rate for Brickland Weave was below the typical 3.0 seen for BTO in Tengah in 2022. This is probably due to the BTO distance away from a MRT station. The uncertainty over the 1km distance to ACS (P) may be another reason. Some buyers were probably holding out for the May 2023 Tengah BTO launch which is right next to ACS (P).
The PLH flats saw a similar application rate to past PLH flats in the same area. The Farrer Park Fields/Rajah Summit BTO attracted the most number of applicants which is expected. It is likely that the PLH flats at Farrer Park Fields have more applicants due to its proximity to the city, walking distance to two MRT stations, a mall and primary school at its doorstep.