October 2024 BTO Exercise, A Watershed In Singapore Public Housing

As eager flat applicants look towards the October 2024 build-to-order (BTO) exercise, know that this is going to be a BTO sales launch like no others before it. The Housing and Development Board (HDB) will be selling BTO flats under the new "Standard, Plus, Prime" classification framework - a watershed moment in the history of public housing here (Read more: NDR 2023: Standard Plus Prime Classification). Henceforth, new HDB flats will no longer be classified under either mature or non-mature town. The new classification will not be applied to existing HDB flats. Furthermore, eligible first-timer singles can buy new 2-room Flexi flats in all locations across Standard, Plus and Prime BTO projects.

What's more, the HDB will be piloting new open-concept 'white flats' in Kallang Whampoa in the October BTO exercise. Such flats will be beamless, with living and bedroom spaces not separated by walls. They offer flat owners with a white canvas, so to speak, to freely design their new home, without having to incur hefty renovation cost to hack walls or to conceal beams.

There is something else to note, eligible first-timer households will receive an increase in the Enhanced CPF Housing Grant (EHG), and may get up to $120,000 in EHG when they buy a new flat. Those who wish to take out a home loan from the HDB should be aware that the loan-to-value (LTV) limit has been lowered to 75% of the purchase price (Read more: Measures to moderate HDB resale market).

The many firsts aside, the October 2024 BTO exercise will also see a deluge of flats being launched - more than 8,500 flats across 15 projects (see Table 1); it is the largest BTO launch since November 2022 where 9,655 new flats were offered.

In this article, PropNex Picks has picked (sorry) a few stand-out BTO projects which could see overwhelming interest from applicants.

Table 1: October 2024 BTO Project Summary & Classification

Source: PropNex Research, HDB

The project offers 2-room Flexi and 4-room flats and it is close to amenities such as the Ang Mo Kio public library, polyclinic, Ang Mo Kio Town Garden West, and AMK Hub. In addition, the area hosts a plethora of schools, including Mayflower Primary School, Anderson Secondary School, Nanyang Polytechnic, and ITE College. It is situated between the Yio Chu Kang and Ang Mo Kio MRT stations on the North-South Line which are around 700 to 800m from the BTO project.

Given its relative proximity to the Ang Mo Kio Town Centre and the MRT station, the Central Trio @ AMK will be launched as Plus flats. As new flats in Ang Mo Kio are fairly rare, this project is expected to be popular. The previous BTO project, the 896-unit Central Weave @ AMK launched in the August 2022 BTO exercise achieved an application rate of 14.1 times.

It is fair to say that Bayshore Vista and Bayshore Palms- which can collectively yield 1,444 new units - are among the most anticipated projects, as they are in the up-and-coming Bayshore precinct. The 2-room Flexi, 3-room, and 4-room flats to be offered across the two projects are within walking distance to the Bayshore MRT station, and units will come with full-height windows where residents can take in either sea views towards East Coast Park, or views of the surrounding Bedok town beyond Upper East Coast Road.

In addition, residents can also look forward to big changes coming to the Bayshore area. As part of HDB's plans to rejuvenate Bedok, Bayshore Drive - located between the two BTO projects - is expected to be lined with shopping, F&B, medical, and recreational facilities. A section of the street will also be a bus-only Transit Priority Corridor with cycling paths and footpaths, to facilitate a seamless commuting experience for residents.

With Bayshore comprising mostly private homes, these new BTO flats should see strong pent-up demand among households who are keen on waterfront living. Second-timer families may also be keen on these flats, if they prefer somewhat of a beachfront living experience.

Located virtually at the doorstep of the Kembangan MRT station, this BTO project is earmarked as an integrated development, with a range of commercial offerings on-site, including eateries, supermarket preschool, and the community club.

Kembangan Wave, which offers just 348 flats (2-room Flexi and 4-room) will see stiff competition among applicants and it will probably be heavily over-subscribed. There have not been any new flats launched in that locale, since the flats in Lengkong Tiga were built in the 1980s. In addition, it will attract applicants who may wish to live near their parents who are residing in mature towns nearby, such as Bedok.

Over in the city fringe and situated next to the Mattar MRT station, the 433-unit Geylang BTO project will offer approximately 260 units of Community Care Apartments (CCA) and 160 units of 4-room flats, as well as a preschool facility. This would be the fourth batch of CCA flats - which integrate senior-friendly housing with care services - that have been launched, with the other three in Bukit Batok West Avenue 9, Queenstown, and Chai Chee. Meanwhile, the 4-room flats will likely see strong demand, particularly with so few units being offered for sale.

New flats in the area include MacPherson Weave (which garnered an application rate of 4.8 times in the May 2021 BTO), MacPherson Spring (Feb 2015 BTO), and MacPherson Blossom (SERS replacement flats). Notably, resale flats at MacPherson Spring in Circuit Road appears to be enjoying healthy interest from buyers; the project has posted 61 transactions this year (up till 26 August), with resale prices ranging from $850,000 to $1.08 million for 4-room flats, and $660,000 to $775,000 for 3-room resale flats.

There are three BTO projects in Kallang Whampoa in this sales exercise, as the government continues to inject new public housing to the area. Kallang Whampoa has featured regularly in BTO exercises since November 2022; the new flats will bring more families in, and enlarge the residential population in that area. Coupled with the upcoming Kallang Alive masterplan - which maps the future development of the precinct around the Sports Hub - the Kallang neighbourhood is expected to be more vibrant in the years to come.

All three BTO projects in Kallang Whampoa are relatively close to an MRT station, but are classified differently. Crawford Heights, in particular, offer Prime flats given its proximity to the city, walking distance to the Lavender MRT station, and its location near to the Marina Reservoir. With 312 units (3-, and 4-room), the project bounded by North Bridge Road and Crawford Street is the second largest of the three Kallang Whampoa launches in this exercise. Crawford Heights is also where the 'white flats' will be piloted. This project is expected to see a strong application rate.

Meanwhile, the 355-unit project Towner Breeze in May Road is classified as Plus flats, in view of its location close to the Boon Keng MRT station, as well as a range of amenities and schools nearby, such as Hong Wen School on the adjacent plot, Bendemeer Secondary School, and NorthLight School. On offer here are 140 2-room Flexi flats and 220 units of 4-room flats.

The third BTO project - Kallang View - in Upper Boon Keng Road will also be offered as Plus flats, being minutes' walk to the Geylang Bahru MRT station. This 271-unit project which offers 3-, and 4-room flats, will be built on the site formerly occupied by private terrace houses (at Lorong 3 Geylang) which were returned to the state when their lease expired in December 2020. However, it is also situated close to the Kallang Paya Lebar Expressway, and the Geylang Bahru Industrial Estate, and Kallang DistriPark which may not be seen as desirable among some buyers

The HDB will roll out two BTO projects in Pasir Ris in October - the first projects in this town since the August 2020 BTO exercise, where Costa Grove was launched. Costa Riviera I and II in Pasir Ris Drive 3 can offer a total of 767 new units across all flat types.

Given the infrequent BTO launches in Pasir Ris, coupled with the attractive location attributes of these projects, these flats will likely be very popular among both first-timer and second-timer buyers. In particular, demand for the larger flats is expected to be robust, with the 110 units of 5-room flats to be hotly contested.

The two projects are a stone's throw to the Pasir Ris MRT station and the upcoming integrated transport hub. There are also plenty of amenities around the projects, such as the new Pasir Ris Mall, White Sands mall, Pasir Ris Sports Centre, Pasir Ris Park, Downtown East, as well as schools including Elias Park Primary School, Hai Sing Catholic School, and Casuarina Primary School, amongst others. In addition, transport connectivity will be further improved as the Pasir Ris MRT station is an interchange station, linking to the future the Cross Island Line.

Taken together, the October 2024 BTO exercise - the third, and final BTO sales launch this year - will offer plenty of options for applicants. While several projects are attractive, home buyers will likely weigh the pros and cons of applying for Plus and Prime flats as these come with stricter resale and rental conditions, subsidy clawback upon resale, and a lengthier 10-year minimum occupation period. Those who are not keen to be "locked-in" to these conditions, or have more pressing housing needs are expected to look at the HDB resale market for buying opportunities; eligible first-timer families who buy a resale flat could receive up to $230,000 in housing grants.

Speak to a PropNex agent to review your real estate needs and find out which housing option works best for you.

Note: This article has been edited as of 15 October 2024 to reflect updated information released by HDB.