First BTO exercise under raised income ceiling set to draw highest number of applications in two years

Singapore As of 5pm on Wednesday – hours before applications close – more than 35,600 applicants were vying for nearly 8,000 Build-to-Order (BTO) flats in the November exercise. An artist's impression of Toa Payoh Hillside. (Image: HDB) New: You can now listen to articles. This audio is generated by an AI tool. SINGAPORE: The first Build-to-Order (BTO) sales exercise since the income ceiling was raised is set to draw the highest number of applications since October 2024, said National Development Minister Chee Hong Tat on Wednesday (Nov 11).The Housing and Development Board (HDB) launched 7,964 flats across seven projects in Bedok, Geylang, Sembawang Tengah, Toa Payoh and Yishun, in the November BTO exercise.As of 5pm on Wednesday, there were 35,603 applicants - or nearly 4.5 applicants per flat.In October 2024, there were 35,678 applicants for 8,573 flats in the first exercise under the new flat classification framework. For first-timer families applying for three-room and larger flats in the latest exercise, the median application rate was 2.6 applicants per flat, compared with 1.4 in June and 0.9 in February.For first-timer singles applying for two-room flexi flats, the median application rate was 8.2, which was slightly higher than the 7.8 recorded in June and 7.3 in February.In a Facebook post, Mr Chee said the increase is “not unexpected”, given that more Singaporeans are now eligible to apply for BTO flats under the raised income ceilings.In August, Singapore raised the monthly household income ceiling from S$14,000 to $16,000 for families and from S$7,000 to $8,000 for singles.“We are seeing strong interest in the flats offered,” he said, adding that there was “varied demand” across the projects.The third and last BTO exercise of the year began on Nov 4 and runs until 11.59pm on Nov 11. The final number of applications will be published at 2pm on Thursday. An artist's impression of Bayshore Oasis. (Image: HDB) STRONG DEMAND FOR PLUS AND PRIME PROJECTSToa Payoh Hillside, the only Prime project in this exercise, attracted the most applications among families, with 5,980 applicants vying for 584 four-room units.This means that over six applicants were competing for each flat.Experts said the high number of applications for the Toa Payoh project was driven by pent-up demand for new flats in the neighbourhood. This was despite the project having a subsidy clawback rate of 11 per cent. A subsidy clawback is an amount that homeowners of Plus and Prime flats must pay back to HDB when they sell their flats.Huttons’ senior director of data analytics Lee Sze Teck noted that the project is next to Caldecott MRT station and the first shopping mall in Toa Payoh, as unveiled during the launch of the Toa Payoh West Master Plan in October.Residents will benefit from upcoming amenities in the nearby Toa Payoh Integrated Development – featuring sports facilities, a polyclinic, a library, and a town park – opening by 2030.“Some of the four-room flats will have a balcony which is very rare and units on the higher floors will have unblocked views of MacRitchie Reservoir,” he added. The indicative price range for a 90 to 93 sq m four-room flat was between S$558,000 and S$832,000, without grants.ERA’s key executive officer Eugene Lim said the starting price compares favourably with nearby resale units, which sold for between S$820,000 and S$1.2 million. Two Plus projects in Bedok – Bayshore Sails and Bayshore Oasis – were also popular among home buyers, drawing 5,213 applications for the 1,165 four-room flats on sale collectively, which translates to an application rate of about 4.5.Ms Christine Sun, chief researcher and strategist of Realion (OrangeTee & ETC) Group, said the projects drew many applicants due to their “excellent location”, proximity to the MRT station and East Coast Park, with residents in some units able to get sea views.Merpati Meadow, another Plus project in Geylang, had an application rate of 2.3 among first-timer families for four-room flats and 8.4 among first-timer singles for two-room flexi flats. An artist's impression of Plantation Dew. (Image: Housing and Development Board) MIXED DEMAND FOR STANDARD FLATSPlantation Dew, a Standard project at Tengah, was the most popular project among first-timer singles, with an application rate of 18.2.Mr Mohan Sandrasegeran, head of research and data analytics at SRI, said the “encouraging” application interest could reflect the town’s ongoing transformation into an established residential community.“Tengah is no longer simply a future residential town taking shape, but one where more residents are progressively moving into their completed homes and amenities such as Plantation Plaza and Parc Point are being introduced,” he said, adding that these developments provide prospective home buyers with greater confidence in the town.The upcoming Jurong Region Line and the planned relocation of ACS (Primary) to Tengah in 2030 could have further strengthened its attractiveness, particularly among young families who value transport connectivity and access to educational institutions, he added.ERA’s Mr Lim said that Plantation Dew’s pricing is also attractive, which gives buyers a “much lower entry point” into Tengah.The indicative price range for a Type 1 two-room flexi flat is S$44,000 to S$166,000, depending on lease length.Additionally, the white flats on offer at Plantation Dew could have drawn more applicants as they may be a “novelty” to many young people, Ms Sun said.“White flats also offer more design flexibility, which will be attractive for buyers who want to create their own layout plans,” she added. An artist's impression of Sembawang Anchor. (Image: Housing and Development Board) Sembawang Anchor, the other Standard project on offer, was less popular despite being the only shorter waiting time project in this exercise, with an estimated waiting time of less than three years.The four-room and five-room units were undersubscribed, with an application rate of less than one among first-timer families, meaning such families were almost guaranteed a chance to pick a unit. Ms Sun said this is within expectations because of the ample supply of new flats in the area, with almost 4,000 flats launched in both the February and June sales exercises collectively.“Those who intended to stay here would have applied in the past. Moreover, there are more attractive projects launched in this exercise, which may have diverted buyers away,” she said.Huttons’ Mr Lee added that the longer distance to an MRT station was a “big minus” for applicants. Sembawang MRT station is about a 10-minute bus ride from the project.The last Standard project, Chencharu Acres at Yishun, had an application rate of 8.9 among first-timer singles for two-room flexi units. Its three-room, four-room and five-room flats had application rates of 2.3, 2.6 and 2.7, respectively.COMMUNITY CARE APARTMENTS OVERSUBSCRIBEDThe Community Care Apartments (CCA) at Toa Payoh Hillside saw stronger-than-usual demand, with 509 applicants vying for 256 units – an application rate of two.Experts attributed this to policy changes for CCAs. In July, the government lowered the minimum age for CCAs from 65 to 55, amid tepid demand for the apartments.The basic service package fee was also lowered, making it more affordable for seniors.“The higher take-up shows that the policy change is in the right direction,” said Huttons’ Mr Lee, adding that another possible reason for its popularity is the high proportion of seniors in Toa Payoh.Ms Sun noted that the project is also well located, beside Caldecott MRT station and within Toa Payoh town.“Moreover, there are many old flats in Toa Payoh. Therefore, many home owners may be keen to sell their existing resale flats and downsize to a CCA, which is smaller and cheaper,” she said.The next BTO sales exercise will be held in February 2027, with about 4,300 flats in Bishan, Tampines, Tengah and Toa Payoh on offer. A concurrent Sale of Balance Flats exercise will also offer about 5,000 flats.“We will continue doing our best to offer a robust supply and good mix of public housing options, so that more Singaporeans can achieve their housing aspirations,” said Mr Chee.