Led by second-timers, demand for Bidadari 5-room flats soars

SINGAPORE — Just one day after the latest Build-to-Order (BTO) exercise was launched, applications for the 151 five-room flats in Bidadari soared to 948 as of 5pm today (Nov 18), translating into a subscription rate of 6.3 times — the highest among the projects on offer.

In particular, the subscription rate among second-timer applicants stood at 45.7 times, which industry watchers said was a result of the limited number of units on offer and the deeper pockets that this group has.

“Bidadari’s location appeals to upgraders whose families have grown and want to be closer to amenities, schools. The growth of their families is also why they tend to go for bigger units. The price may act as a deterrent to the first-timers, but second-timers have capital in the form of their current properties,” said Mr Ku Swee Yong, chief executive of Century 21.

Bidadari, part of Toa Payoh town, will be served by a new park and lake, a reminder of the greenery it replaced. The estate also has eco-friendly features, such as a cycling and pedestrian path network, bicycle stands, and parking spaces for shared cars.

Prices of five-room flats in Bidadari start from S$544,000 excluding grants, a sum industry watchers said is “not cheap but reasonable” considering its location and proximity to the city centre. They added that first-timers also responded well to the launch with subscription rate hitting 4.4 times as of 5pm today.

“There are very few five-room units this time and with the income ceiling now raised, we have more people from the higher income brackets also applying for BTO. It’s not surprising that this group would go for larger units,” said Mr Eugene Lim, key executive officer of ERA.

Mr Chris Koh, director of property firm Chris International, said the small number of five-room flats on offer has also contributed to the high subscription rate. He noted that demand for four-room flats, which were 1.3 times subscribed, was “quite reasonable”.

The 1,229 four-room flats had 1,537 applicants vying for them. There were 4.7 times more second-timers competing for the units allocated to them, while that of first-timers stood at 1.1 times.

“(Overall subscription for four-room flats) may inch up to two or three times, that’s quite reasonable. I think location plays a big part, but the volume of five-room flats is very small. The last time I remember seeing such high subscription rate was when the Government allowed singles to buy BTO two-room flats for the first time. I think subscription rate was 50 or 60 times,” he said.

Mr Colin Tan, director of research and consultancy at Suntec Real Estate Consultants, added that the hype around Bidadari has drawn the attention away from the other projects in the current BTO exercise. This was evident in their relatively lacklustre subscription rates, he noted. Five-room flats in Sengkang, for instance, drew only 54 applications for the 192 units.

Smaller units in the Bidadari estate did not enjoy the same level of interest as their larger counterparts. Three-room flats attracted 183 applications for 567 units, while 146 applications were received for 192 two-room flexi flats.

Mr Koh said prices for the smaller flats may have been steep for the income group they are intended for, leading to this group of buyers turning to cheaper alternatives in the BTO exercise.