Demand for BTO flats in December launch lacklustre amid tightened non-selection rules

Application rate settled at 2 times the 6,057 flats on offer.

Analysts said homebuyers’ response to the December build-to-order (BTO) exercise had been lacklustre after the tightened non-selection rules deterred less serious applicants, showing a clearer picture of the true demand on subsidised homes.

The overall application rate on the latest sales exercise inched up to 2 times of the 6,057 flats on offer compared to 1.6 times during the October launch as of 5 pm on 11 October, hours before the application closed later that night. 

Ismail Gafoor, CEO of PropNex Realty, said the uptick was rather modest and the results were “relatively lacklustre” compared with the previous BTO exercises where application rates usually range from 2.5 to as high as 8.1 times.

“This (tighter non-selection rule) has perhaps helped to sift out those who are applying merely to “try their luck” and now we are seeing a truer picture of BTO demand. It is also beneficial for genuine flat applicants who will now stand a better chance of securing their flat,” Gafoor said.

First-time applicants also have a higher chance of securing their slots due to the lower application rate. For instance, he said the application rate for three-room flats across all eight projects on offer stood at one.

READ MORE: Why the October BTO exercise received lukewarm demand

The total volume of applicants rose by 12% to 12,235 applications during the December round from the October exercise.

Huttons Asia senior director for data analytics Lee Sze Teck, however, expected participation would be higher than the actual turnout due to the much awaited BTO projects in Bishan and Woodlands.

“Among the mature estates, Bishan (Sin Ming Residences) was the most popular (despite having no) clawback subsidy and resale restrictions. This shows that buyers want a good central location but without the PLH restrictions,” he said.