Non-selection penalty had little effect on February BTO exercise

More attractive BTO launches led to moderate response in February.

The number of applicants of build-to-order (BTO) launches in the latest exercise was the lowest since September 2019 as buyers are anticipating more attractive launches in future exercise, analysts said.

PropNex Realty said the exercise lured 15,234 applicants for the 4,428 new flats offered for sale, representing an application rate of about 3.44 times.

Huttons said more attractive launches will be offered in May 2023 in Tengah, Bedok, and Serangoon, with Bedok and Serangoon having their first BTO launch in about seven and nine years, respectively. 

The analyst said the government's penalty on non-selection did not seem to affect the count of applicants. 

For PropNex, higher CPF housing grants may have caused some demand into the resale HDB flat market. PropNex noted that these factors suggest a stabilisation of application rates back to 2019 levels.

Below average

Huttons said amongst below average applications was Brickland Weave, which had a long distance from MRT station. PLH flats had a similar application rate to past PLH flats in the same area. 

Meanwhile, Farrer Park Fields/Rajah Summit BTO attracted the most applicants, due to its proximity to the city, two train stations, a mall, and a primary school.