February BTO sales muted as buyers wait for more attractive locations, say analysts

SINGAPORE: The response to the February launch of Build-To-Order (BTO) flats has been “measured” and this could be due to the less attractive locations of the developments in the non-mature estates, analysts said.

Buyers could also be “holding back” for the flats in mature estates coming up in the May launch, they added.

“Some potential BTO applicants will ‘save their bullets’ to apply for the next BTO projects,” said Mr Nicholas Mak, head of research and consultancy at ERA Realty Network.

Applications for 4,428 new flats in the latest BTO sales exercise ended at 11.59pm on Monday and the final results were updated at 2pm on Tuesday (Mar 7).

There were 16,993 applicants in all, resulting in an overall application rate of 3.8 times. For first-timer families, the application rate for three-room and larger flats ranged from 0.6 to 3.4, with most projects garnering 1.5 to 2 times the number of applicants for one flat.

For second-timer applicants, however, the rate went up as high as 45.7 for each four-room unit at Ulu Pandan Glades, a Prime Location Housing (PLH) project in Queenstown.

First-timers stand a better chance of snagging a flat as they have more ballot chances and up to 95 per cent of BTO flat supply is reserved for them.

CEO of PropNex Realty Ismail Gafoor said that the overall application rate is “quite measured” compared with recent BTO launches.

With the exception of the November 2022 launch, which posted an application rate of 2.5 times due to the bumper supply of 9,655 new flats on offer, the other three BTO launches in February, May and August 2022 had application rates of between 5.8 and 7.8 times.