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The Prime flats in Kallang Whampoa emerged as the most sought-after units in February’s Build-to-Order (BTO) sales exercise, with four-room flats in the area attracting over five applicants per unit. As of Monday, February 17, 5 PM, there were 12,431 applications for the 5,032 new flats available in this exercise. The application period concluded at 11:59 PM the same day.
Tanjong Rhu Parc Front, the only Prime project in this BTO exercise, received an overwhelming response. A total of 4,232 applications were submitted for the 812 two-room flexi, three-room, and four-room flats available. Among them, four-room flats were the most sought after, with 2,488 applications for just 464 units.
Similarly, Stirling Horizon in Queenstown, the sole Plus project in this exercise, garnered significant interest, attracting 2,571 applications for 1,126 units. Four-room flats were again the most in-demand.
Prime and Plus flats are distinguished by their attractive locations and enhanced subsidies, ensuring affordability. However, they also come with stricter conditions to mitigate speculative demand. These include a 10-year minimum occupation period (MOP) and a subsidy clawback upon resale.
Two-room flexi BTO flats remained highly popular, especially among singles and seniors. More than 4,000 applicants vied for the 1,411 two-room units available.
The highest demand came from singles applying for units at Tanjong Rhu Parc Front, where the 261 two-room flexi flats were over 11 times oversubscribed. This surge in demand follows a policy shift in October 2024, which allowed singles to apply for two-room flexi flats in all locations, including mature estates. Analysts note that this has created more opportunities for singles to secure homes in well-connected, amenity-rich areas.
In contrast, demand was lower for flats in non-mature estates like Woodlands and Yishun. Woodlands North Verge, the first project in the Woodlands North Coast precinct, saw three-, four-, and five-room flats undersubscribed among first-time applicants. Analysts attribute this to the area's currently limited amenities.
Meanwhile, the Chencharu Green and Chencharu Vines projects in Yishun had slightly higher demand. The first-timer application rate for three- and five-room flats was 1.3, while four-room flats had an application rate of one.
Across all projects, there were 12,400 applicants for the 5,032 flats on offer, resulting in an overall application rate of 2.47 per unit. This marks a significant drop from the October 2024 sales exercise, which saw 35,678 applicants vying for 8,573 flats, with an overall application rate of 4.16.
Property analysts highlight the impact of the high demand for the SBF exercise, where over 22,000 applicants competed for 5,590 available flats. Many buyers were drawn to balance flats due to their shorter waiting times.
National Development Minister Desmond Lee noted a more balanced demand-supply dynamic in the BTO market. The overall application rate for first-time families across all flat types was lower compared to previous sales launches and even pre-pandemic levels.
The median application rate for three-room and larger BTO flats for first-time families stood at 1.0. First-timer singles, however, continued to show strong interest in two-room flexi flats. The median application rate for three-room and larger Sale of Balance flats (SBF) from first-timer families was 2.5, the lowest in the past three years.
This February’s SBF exercise featured the largest offering to date, with 5,590 units up for sale.
Minister of National Development, Desmond Lee highlighted that the supply in the resale market remains relatively tight, with fewer flats reaching their MOP due to construction delays caused by the COVID-19 pandemic in 2019 and 2020. However, the situation is expected to improve in the coming years. The number of flats completing their MOP will increase steadily, rising from 8,000 in 2025 to 19,500 in 2028.
JT Chia, Managing Director at Propertyforsale, attributed the strong demand for Tanjong Rhu Parc Front to its strategic location between the Tanjong Rhu and Katong Park MRT stations and its proximity to the city center. Additionally, many units in this project are likely to offer scenic river views, further boosting its appeal.
The announcement of the Kallang Alive Master Plan has heightened interest in the area, he added.
While Queenstown’s Stirling Horizon received a decent response, its overall application rate was lower than expected. The project attracted fewer applications compared to Holland Vista, the previous BTO launch in Queenstown, which recorded a striking 9.8 applications per four-room unit.
In contrast, four-room flats in Stirling Horizon had an application rate of approximately 2.5. Stirling Horizon’s relatively long waiting period of more than four years may have dampened demand.
The February BTO exercise reflected evolving buyer preferences and a more balanced market. While Prime flats in Tanjong Rhu Parc Front saw overwhelming demand due to their prime location and scenic views, Stirling Horizon’s response was more subdued, likely due to its longer waiting period and competition from previous launches. With the number of flats reaching their MOP set to increase significantly in the coming years, homebuyers can expect a wider range of options in both the BTO and resale markets.
