Robust demand for BTO flats from second-time buyers, singles

SINGAPORE — The latest Build-to-Order (BTO) exercise — which closed at midnight yesterday — continued to draw strong demand from second-time buyers and singles.

As of 5pm yesterday, there were 13,169 applicants for the 3,841 units on sale, including studio apartments, in six projects in Punggol, Sembawang, Toa Payoh, Woodlands and Yishun. Overall, the application rates for first-timers (1.9) and second-timers (3.9) were about twice the rates for the BTO exercise in May which comprised four projects in Woodlands and Bukit Batok. The application rate for singles was 17.5, compared with 16 in the May exercise.

In particular, the Toa Payoh Apex project attracted a large number of applicants — the application rates for a four-room unit, for example, were 7.2 and 48.7 for first-time buyers and second-timers, respectively.

Analysts attributed the strong demand in the latest exercise to the fact that most of the projects were in estates with good amenities and infrastructure. Mr Nicholas Mak, executive director for research and consultancy at SLP International Property Consultants, said they were mostly within walking distance of an LRT or MRT station.

Mr Chris Koh, director of Chris International, also noted the attractiveness of Punggol, which will become Singapore’s largest housing estate over the next decade or so.

Following the lukewarm demand from first-timers in May — where there were more than enough new units to go around for this group — analysts said the backlog for BTO units among first-time buyers has been cleared, and the Government should allocate more units to second-timers and singles.

Yesterday, analysts TODAY spoke to maintained this view, citing the lower level of demand from first-time buyers in recent BTO exercises, compared with the situation several years ago.

In the latest exercise, demand from second-time buyers and singles remained high. For example, at Park Grove @ Yishun, the application rate for second-timers was 4.2 for four-room flats, for example, while about 31 singles were vying for each two-room unit on sale.

Similarly, at the Waterway Sunray and Matilda Court projects in Punggol, the application rate for second-timers was 3.5 for three-room flats, for example, and there were about 21 applicants for each two-unit flat.

Analysts said they expected the high demand for units at the Toa Payoh Apex project at Toa Payoh Lorong 6, given the fact that it was located in a mature estate. BTO projects in Toa Payoh, which were launched in November 2012, for example, also attracted a large number of applications.

Mr Colin Tan, director of research and consultancy at Suntec Real Estate Consultants, said: “Toa Payoh is very central (and) a lot of people will apply (for projects there). It’s a windfall if you can get it.”

Mr Mohamed Ismail, CEO of PropNex, noted that the prices of resale flats in a mature estate such as Toa Payoh are out of reach of many prospective buyers. So when a BTO project comes along, they would grab at the chance, he said.