8 Tips To "Increase" Your BTO Chances

October is THE month for all potential first-time homeowners. The October 2024 BTO launch, which will also be the last one of the year, promises to be one of the most widespread and biggest one yet, with over 8,500 apartments across several estates, such as Woodlands, Sengkang, Pasir Ris, Kallang/Whampoa, Jurong West, Geylang, Bukit Batok, Bedok, and Ang Mo Kio.

As mentioned earlier, this launch will be the largest one in 2024, surpassing the past two launches this year; 4,126 apartments across six estates in February and 5,074 apartments across six estates in June.

The apartments will also be launched under the new Standard, Plus, and Prime model, and Singaporeans 35 and single are able to apply for 2-room Flexi BTO flats no matter the location. Bayshore will also see its first HDB units and the new white apartments will be piloted in Kallang/Whampoa.

For more information on what you can expect from October's BTO launch, you can check my colleague's article which provides a detailed overview on the exercise.

First of all, in order to be eligible for this month's launch, you need to ensure that you have a valid HFE letter, which should have been submitted by 15 September. So, if you have not done that, it is safe to say that you can just close this article (I'm just kidding! Please don't. You can always read this article for the next launch!)

Once you have gotten the prerequisite steps covered, your BTO application goes through a balloting system. Basically, the smaller your queue number, the earlier you will be called to choose your desired apartment, which means a better chance of getting your dream home.

One unavoidable factor that affects your queue number is the Ethnic Integration Policy (EIP). Basically, each neighbourhood or block has a predetermined racial quota that is based on Singapore's racial composition. So, for example, if the Chinese quota has been met in the particular project you are targeting and you are Chinese, your chance of selecting an apartment is low, especially if your queue number is high.

If you are applying for a BTO for the first time, you will automatically be awarded two balloting chances. If you are applying for the second time, you only get one chance. To help increase the chances of first-time homeownership in Singapore, applicants who fall within the first-timer (parents and married couples) category will get an additional chance, for a total of three balloting chances.

That being said, no matter how many balloting chances you get, your queue number is generated randomly. As such, there are technically no methods to "increase" your chances of getting a smaller queue number. Or are there?

While there are technically no ways to "increase" your chance of getting a smaller queue number, there are ways to maximise your balloting chances as a young Singaporean family or couple. Here are 8 significant tips to do so!

1. HDB's Priority Scheme #1: Family & Parenthood Priority Scheme (FPPS) and Third Child Priority Scheme (TCPS)

As mentioned earlier, applicants who fall within the first-timer (parents and married couples) category will get a total of three balloting chances. If you are married and are expecting a baby or already have children who are 18 years or below and are Singapore citizens, you can apply for a BTO apartment.

FPPS and TCPS are two key BTO priority schemes that you can apply under to "increase" your success rate. To be eligible under the FPPS, both you and your partner must be first-time BTO applicants and must show proof of marriage.

Source: SGAG

For the TCPS, your family must have at least three children, which is another sign to have more children! While your other children can be either Singapore Permanent Residents or citizens, your third child MUST be Singapore citizen.

The TCPS was introduced to combat Singapore's declining birth rate, promoting and encouraging having larger families. There are instances where you might fall within both schemes. In such instances, your first ballot will be under the TCPS. If it is unsuccessful, your next ballots will be under the PPS.

2. HDB's Priority Scheme #2: Married Child Priority Scheme (MCPS)

Another priority scheme that you can leverage is the MCPS. It is for those who are applying for a BTO within 4km of or with their married child or parents. While both first and second timers can apply under this scheme, you will have a better success rate if you are a first-timer. This is because 30 percent of SBF or BTO are allocated for first-time applicants, while second-time applicants get 3 percent.

There are two things you have to consider when applying for a BTO under this scheme:

1. The living compatibility between both married children and parents
2. If you are living within 4km of your parents or married child, they are required to stay within the distance until the 5-year MOP, which could add up to a total of 8 to 10 years before being able to sell or live further than the 4km radius.

3. HDB's Priority Scheme #3: Multi-Generation Priority Scheme (MGPS)

If your parents and you are looking to apply for a BTO and are not looking to live in the same unit, you can maximise your success rate by applying under the MGPS. Basically, you and your parents submit a joint application for two separate units that are close to one another, sometimes even on the same level.

Under the MGPS, your parents are able to apply for 2-room flexi and 3-room apartments, while you are able to apply for any sized units. That being said, the available units under the MGPS are generally quite limited as they have been pre-allocated and are usually on either high or low levels in different blocks.

Also, since it is a joint application, this means that both parties share the same queue number and must complete each application process together, from signing the option to purchase to the final lease agreement.

4. HDB's Priority Scheme #4: Assistance Scheme for Second-timers (ASSIST)

The ASSIST aims to provide housing support for widowed or divorced individuals with children. In order to qualify for this scheme, at least one of your children must be 18 years old or younger. In addition, you should not own any private property or HDB apart from your matrimonial property, following the separation or the passing of your spouse.

5. HDB's Priority Scheme #5: Tenants' Priority Scheme (TPS)

For those who have been renting an HDB apartment for the past two years, the TPS is available for you to apply under. The TPS grants priority to rental flat tenants who are considering transitioning to being homeowners through BTO applications.

6. Apply At Less Popular Estates

If you want to maximise your success rate in getting a BTO, you might want to give popular estates a pass. HDB has stated that they will increase BTO allocation for first-time applicants in not as popular estates, such as Woodlands. Approximately 95 percent of 4-room and larger apartments will be reserved for first-time family applicants. Additionally, 85 percent of 3-room apartments will be reserved for them.

For first-time single applicants, 65 percent of 2-room flexi apartments will be allocated. If you are targeting BTO projects in not as popular estates, you would be glad to know that an additional ballot chance is given for every two unsuccessful ballots. This is to help young families or couples who are intentionally applying for BTO at these estates but have been unsuccessful.

7. Ballot For A Smaller Apartment

Source: HDB

From the statistics released by HDB, we can see that larger 4 and 5-room BTO are the most popular types. As such, if you do not require a large space, you might do better applying for a 3-room apartment first.

8. Do Not Apply Straight After The BTO Launch Announcement

BTO balloting is not a race. Applying first does not equate to having a better chance. Instead of rushing to put in your ballot, you could take a step back to monitor the BTO applications for the projects. HDB updates the application rates on their website every couple of hours. If location is not a huge priority, you might consider balloting at the estate with the least number of applications on the last day of the exercise.

This brings us back to the previous point. If you need a home urgently and you do not mind smaller apartments or ulu locations (do check this out where we explore ulu may not be so bad), then it may be better to wait and ballot for less-competitive projects.

Think you are ready to #BTOgether? It is vital to maximise your first BTO application. First-time applicants get certain priorities and privileges in the allocation process as their homeownership needs are more urgent. As such, it is important that you do your due diligence in researching on how you can maximise your success rate.

While it is inevitable to experience the societal pressure of homeownership, do not rush into it, especially when passing up on your BTO queue number leads to you having to wait one year before being able to apply again (You and your partner will also be considered second-timer).

Remember, the eight tips mentioned above are not guaranteed solutions to securing your dream home but ways you can leverage to optimise and maximise your ballot opportunities. And if you are participating in this month's BTO exercise, I just want to say:

Views expressed in this article belongs to the writer(s) and do not reflect PropNex's position.