In the recent February launch of Build-to-Order (BTO) flats, Kallang/Whampoa and Queenstown emerged as particularly sought-after locations, greatly outpacing other areas regarding applicant interest.
This surge in demand, particularly from singles and elderly applicants, contrasts sharply with the overall national trend, where a more subdued demand was observed, with a general application rate of 2.47 per unit across all BTO projects.
This pattern suggests a shifting landscape in public housing preferences, potentially influenced by factors such as location desirability and demographic shifts.
What might be driving these localized spikes in demand, and how could they forecast future trends in Singapore’s public housing market?
Analyzing the High Demand for Kallang/Whampoa and Queenstown BTO Projects
Why are the Kallang/Whampoa and Queenstown BTO projects so highly favored? These locations are appealing primarily due to their central location and established amenities. During the February BTO launch, four-room flats in these areas exhibited a strong preference among applicants. Specifically, the Tanjong Rhu Parc Front in Kallang/Whampoa, situated near Geylang River, had more than three first-time applicants per unit, underscoring its attractiveness. Similarly, the Stirling Horizon project in Queenstown saw an application rate of 1.7 per four-room flat. In addition, the two-room flexi flats at Tanjong Rhu Parc Front attracted over 1,500 applicants for just 261 units, indicating a significant demand from singles and seniors, who find these options particularly appealing.
Factors Contributing to the Subdued Overall Demand for BTOs
Despite the allure of newly built homes, the overall demand for Build-To-Order (BTO) flats has shown a notable decrease, registering a muted application rate of 2.47 per unit in the latest exercise. This downturn can be attributed to several factors. The concurrent Sale of Balance Flats (SBF) exercise attracted significant interest, with over 22,000 applicants vying for 5,032 units, effectively diverting attention from the BTO flats. Additionally, first-time applicants demonstrated a lower application rate compared to previous years, indicating a more cautious approach to home buying currently. The National Development Minister noted a balanced demand-supply situation in the BTO market, suggesting that the existing supply adequately meets the current demand without surplus.
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The Impact of the Resale Market and Future Housing Supply Projections
While the allure of newly built homes persists, the dynamics within the resale market are poised to greatly influence housing availability and affordability. The current tightness in the resale market, exacerbated by a dwindling number of flats reaching their Minimum Occupation Period (MOP), is set to impact prospective buyers. However, projections indicate a significant increase in supply by 2028 when around 19,500 flats are expected to complete MOP, compared to just 8,000 in 2025. This anticipated surge should provide relief. Additionally, the National Development Minister has assured a balanced demand-supply scenario in the BTO sector, bolstered by the planned introduction of over 50,000 BTO flats between 2025 and 2027, aiming to mitigate some immediate supply constraints.