Press Release

Press Release

28 February 2023

FOR IMMEDIATE RELEASE

The Housing and Development Board (HDB) has launched the February 2023 Build-to-Order (BTO) sales exercise today. 4,428 BTO flats from five sites over four towns (Jurong West, Kallang/Whampoa, Queenstown, and Tengah) have been put up for ballot. Two sites will be under the Prime Location Public Housing Model (PLH).

Analysis of each site:

Kallang/Whampoa (both PLH and non-PLH sites)

1- Farrer Park Fields (PLH)

2- Rajah Summit (non-PLH)

We expect strong demand for the new flats in Kallang/Whampoa, especially the Farrer Park Field site which is beside the Little India MRT station. The Farrer Park field area will be redeveloped into a public housing estate integrated with comprehensive sports and recreational facilities. Such integrated developments are rare and likely to attract sports enthusiasts and families with young children. https://www.hdb.gov.sg/about-us/news-and-publications/press-releases/25042022-Farrer-Park-Site-Redeveloped

For the PLH model flats, the location is central, with ample amenities and transport convenience. Demand will be healthy despite the longer minimum occupation period (MOP) and selling restrictions. The popularity of this site may drive up the overall subscription rate for Kallang/Whampoa. 

The Rajah Summit site is also near Toa Payoh central, with ample amenities. The site is close to various sports facilities such as the Toa Payoh Sports Hall, Safra, etc.

3 Queenstown - Ulu Pandan Glades (PLH)

As this site is near the previous PLH model flats at Dover Forest, those who desire to stay in this area but failed in their previous applications may apply for this site. These flats are well-located and close to amenities in Holland, Buona Vista and Clementi. The place is also close to major transport nodes, making commuting to the downtown core highly accessible.

Although many PLH model flats have been released for sale over the past year, demand has remained strong, and every project was oversubscribed. This is because many young Singaporeans are be enticed by the opportunity of owning a new flat in the city fringe at a subsidized rate. The investment potential and rental returns will also be attractive in the long term.

4 Tengah- Brickland Weave

The relocation of ACS (Primary) to Tengah may result in more applicants vying for this batch of flats, although we do not expect a big spike in numbers. https://www.moe.gov.sg/primary/p1-registration/changes-to-p1-registration/what-the-change-in-home-school-distance-calculation-means-for-you 

The overall application rate for BTO flats at Tengah was about 2.6, with a total of 43,171 applicants applying for 16,914 new flats since 2018. For 4-room flats, the overall application rate was higher at about 2.9, with 16,612 applicants vying for 5,819 units from 2018 to 2022.

We may expect the number of applicants or application rate to be higher than previous launches as some blocks for the current Tengah site may fall within 1 km of the upcoming new school, while others are within 2 km of the school. This batch of flats may reach MOP (i.e. 2032) just after the school relocates in 2030, which means homeowners can lease their flats to those wanting to rent a unit to enhance their chances of getting a school placement.

Nevertheless, some potential buyers may be mindful of the number of flats built in the area. From 2020 to 2022, an average of 3,218 BTO flats were launched for sale in Tengah annually. The 330 primary one spaces released annually may only meet the needs of about 10 per cent or fewer families staying in Tengah. Those who cannot get a placement in ACS must enroll in other primary schools in Tengah.

Although a popular school may push resale prices higher by up to 15 per cent in general, other factors like the amenities, transport network, etc will affect how high prices can rise in future. Being one of Singapore’s newest town, Tengah’s prices may still take time to catch up with other towns.

5 Jurong West - Jurong West Crystal

The site is within walking distance to Pioneer MRT Station on the East-West Line, and only one MRT stop from Jurong Point shopping centre next to Boon Lay MRT station. The site also has high accessibility to Jurong Lake District. We expect healthy take-up given the site’s good location and connectivity. As few units (271 units) are offered for this site, the application rate may be high due to the lower base.

Impact of Budget announcements

Considering the rising prices of resale HDB flats, executive condominiums and private condo prices, BTO flats remain the most affordable housing option for buyers, especially young cash-strapped Singaporeans.

However, with the increased CPF Housing Grant announced in the Budget, we expect some BTO demand to be diverted to the resale market. Since more subsidies are given, we may expect more eligible buyers to buy at popular locations, such as mature estates. Others may buy slightly bigger flats with additional grants (e.g. to purchase a small 4-room flat instead of a 3-room flat). The move will help to ease the anxiety of young couples who need urgent housing.

Moving forward, families with children and married couples aged 40 and below looking to secure their first home will receive more support in the form of an extra ballot chance for their BTO flat applications likely from the August BTO launch. Families with children typically apply for bigger units and flats with shorter completion times. Therefore, we may expect more of such eligible families to apply for the BTO flats at Tengah in future as there will possibly be more 5-room flats offered (more BTO flats will be released in Tengah for the August launch according to HDB press release).