February 2025 BTO Launch, Over 5,032 Flats for Sale: Commentary by ERA

SINGAPORE, 10 February 2024 – The Housing and Development Board (HDB) announced the start of the February 2025 Build-To-Order (BTO) exercise, which will see a total of 5,032 flats brought to the market for purchase. 

Overview

“This February 2024 BTO launch, which also consists of the annual SBF exercise stands out in a few key highlight areas, such as the first ever Plus project in Queenstown, as well as the largest ever SBF exercise consisting of 5,590 units.”

“Many of the homes offered under the Sale of Balance Flats (SBF) scheme have shorter remaining leases of 40 to 60 years, which may not appeal to first-time applicants, who are typically younger buyers. However, these units may attract older second-timer applicants who prioritise affordability and may not require the extensive lease.”

First Plus Project in Queenstown – Cheaper than in 2024

“The project Stirling Horizon will be the first Plus project in Queenstown. In comparison to the most recent Prime Queenstown BTO project launched in June 2024, we are observing lower starting prices for 4-room units, compared to the BTOs offered at Holland Village and Tanglin last year. There are also 3-room units, which were omitted in last year’s project.”

“Given the outstanding application rate of over 7.3 for last year’s project, we expect the same performance this time round, given the town’s reputation as a centrally located and mature estate.”

Affordable Homes in Yishun and Woodlands with a 5-year MOP

“HDB is continuing to release affordable housing in the new, or up-and-coming estates. Unsubsidised 4-room and 5-room units in Chencharu are starting from $316,000 and $447,000 respectively, making them affordable options for most Singaporeans.

Likewise, the Woodlands North Verge project, which will benefit from the revitalisation of Woodlands North will see slightly higher, but also affordable prices, with 4-room flats starting from $365,000. Overall, these two standard projects will be highly popular as they are affordable projects and will be subjected to the typical 5-year Minimum Occupation Period (MOP).”

New Chencharu BTO flats to Revitalise Yishun, Featuring Shorter Wait Times

“The shorter wait time, being close to the Khatib MRT station and in proximity to amenities of these BTO flats will appeal to homebuyers.  For now, nearly 84% of the existing flats along Yishun Ring Road were built before 2000, so the BTO flats in Chencharu will open options for buyers looking to live in this area of Yishun.

In addition, future residents can look forward to a park to connect residents to Khatib MRT, an Integrated Development with a new bus interchange, hawker centre and shops.”

“For some, BTO flats are not a viable option due to the long waiting time of five to six years. In contrast, flats with shorter waiting times of less than three years offer these buyers greater flexibility. This allows them to consider temporary arrangements, such as renting a place or staying with family, while waiting for their new home to be ready.”

“Demand for resale flats is primarily driven by homeowners with immediate housing needs. The shorter wait time could potentially draw some resale buyers back to the BTO sales launches, particularly the Chencharu is an up-and-coming area in Yishun which has existing amenities and MRT access. The shorter wait time further sweeten the deal for potential homebuyers.”

Plenty of Options Available for Singles

“There will be 2,759 2-room Flexi flats available across both the BTO and SBF exercises. With the introduction of the Plus and Prime housing models, Singles are now able to apply for any 2-room Flexi flat of their choice islandwide.”

“With a greater degree of flexibility in terms of location, this will help alleviate demand for 2-room flats, which have generally been oversubscribed in BTO launches.”

Second time that Prime BTO projects are released in Tanjong Rhu

“Similar to October 2024’s BTO exercise, only one Prime project was launched, this time in Tanjong Rhu.”

“Tanjong Rhu Parc Front’s launch follows closely after Tanjong Rhu Riverfront I and II, which were also offered in June 2024’s exercise as Prime projects. Notably, 3-room flats at these projects saw more lukewarm interest and were undersubscribed. We could see a similar outcome this time round, as 3-room flats will also be offered at Queenstown resulting in more competition.”

“On the bright side, this could be a positive for applicants for 3-room flats at Tanjong Rhu, as they may have higher chances of securing a unit of their choice.”

END OF PRESS RELEASE

For media enquiries, please contact:

Eugene Lim, Key Executive Officer, ERA Singapore

Email: [email protected]