In the February 2025 BTO sales exercise, 4-room flats in the city-fringe estates of Kallang/Whampoa and Queenstown attracted the most interest from first-time families.
However, overall demand for these BTO flats was relatively subdued, as the concurrent Sale of Balance Flats (SBF) exercise diverted attention. HDB data as of 5 p.m. on February 17th, shows 34,444 applicants for 10,622 new flats (both BTO and SBF units). There were 12,431 applications for BTO flats, which comes out to about 2.5 applicants per flat.
This exercise has thrown up some interesting trends, so let’s analyse them together!
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Recent SBF and its effect on application rates
Larger BTO flats, such as 3- and 4-room units, have seen an unexpected muted demand this year. The Housing & Development Board (HDB) reported that the median number of first-time applicants per unit stood at just one, based on figures as of 5pm on 17 February.
Minister for National Development, Desmond Lee, commented that the first-time family application rate for this round was lower than previous years, including those before the Covid-19 pandemic. He suggested that this reflected a more balanced supply-demand situation within the BTO market.
A total of 12,432 applicants competed for the 5,032 BTO flats across the five projects announced in the February BTO exercise. The projects of Kallang/Whampoa, Queenstown, Yishun, and Woodlands, saw an overall application rate of 2.47 per unit.
This marks a significant decrease from the October 2024 sales exercise, which saw an overall application rate of 4.16 for each of the 8,573 flats on offer.
Interestingly, property analysts point to the concurrent SBF exercise as a key factor influencing BTO demand. With over 22,000 applicants vying for just over 5,500 SBF units, it’s clear that the lure of potentially faster move-in dates is stronger. These flats, in various stages of completion, offer a quicker route to homeownership compared to the typically longer wait times associated with BTO projects.
The February 2025 SBF launch offered a record-high number of 5,590 flats across various towns and estates. Approximately 40% of these flats will be ready for immediate occupancy, while the rest will be completed gradually between 2025 and 2028. Read our analysis here.
Furthermore, there will another SBF exercise later this year as announced in the annual budget 2025.
A look at the February 2025 BTO projects and their demand
The HDB announced five new BTO projects in February, offering a total of 5,032 flats across five projects in Kallang/Whampoa, Queenstown, Yishun, and Woodlands. Let’s look at how each of these projects fared in terms of demand:
1. Tanjong Rhu Parc Front: High-demand Prime project
Within the February 2025 BTO launch, the 4-room flats at Tanjong Rhu Parc Front in Kallang/Whampoa stood out, attracting more than three first-time applicants per unit. This Prime project, situated near the Geylang River, offers attractive city living, albeit with a 9% subsidy clawback upon resale.
Our analysis suggests that Tanjong Rhu Parc Front’s higher application rate was driven by its limited availability and relatively lower pricing. Its prime location near MRT stations and the city centre, as well as the potential for river views, further increased its appeal.
The recently announced Kallang Alive Masterplan has also generated new interest in this area among home seekers. Kallang is no longer just a fringe town, but an exciting redevelopment project with lots of future benefits.
We deep dived into the Tanjong Rhu Parc Front project to understand why it’s the talk of the town. Read more here.
Looking for properties in Kallang/Whampoa? Here are our finds:
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2. Stirling Horizon: Plus category flats with strong competition
In Queenstown, the 4-room flats at Stirling Horizon, which is in the Plus category, also saw significant interest. On average, 1.7 first-time applicants competed for each of the 586 available flats. This project has a subsidy clawback rate of 8%, and is expected to be in high demand due to its desirable location.
Wondering why the Stirling Horizons project has got everyone’s attention? Our team breaks it down for you here!
3: Woodlands North Verge and Chencharu Projects: Standard flats with lower demand
The 1,563 BTO flats at Woodlands North Verge, were undersubscribed, particularly among first-time applicants. Analysts believe this could be due to the lack of surrounding amenities, which makes the area less attractive to prospective buyers. The current underdevelopment of the area is also likely a contributing factor to the lower demand.
Meanwhile, in the emerging residential precinct of Chencharu in Yishun, demand was slightly higher. The application rate for 3- and 5-room flats across the two Chencharu projects stood at 1.3, while the rate for 4-room flats was 1.
2-room flexi flats remain in high demand among singles
Meanwhile, demand for 2-room flexi BTO flats remained strong, especially among singles and seniors. As of 17 February, more than 4,000 applicants were competing for 1,411 2-room units on sale. Tanjong Rhu Parc Front, once again, saw the highest demand in this category. The flats in this project were oversubscribed by more than 11 times among singles.
This is a direct result of the recent policy change, which now allows singles to apply for 2-room flexi flats in all locations, rather than being restricted to non-mature estates.
Looking ahead: Resale market and future BTO launches
National Development Minister Desmond Lee acknowledged that the resale market will remain tight in 2025 due to fewer flats reaching their Minimum Occupation Period (MOP), partly due to construction delays during the pandemic. This will put upward pressure on resale prices.
However, in a Facebook post, Minister Desmond Lee reiterated that this is a temporary issue. In 2028, approximately 19,500 flats will reach their MOP, up from 8,000 in 2025. The government has also committed to launching more than 50,000 BTO flats between 2025 and 2027, demonstrating its commitment to meeting housing demand.
What does this mean for home owners in Singapore?
The February 2025 BTO exercise highlights the diverse needs and priorities of Singaporean homebuyers. While city-fringe locations with good connectivity and amenities remain highly desirable, the availability of SBF flats offers an alternative for those seeking quicker move-in dates.
For budget-conscious buyers, Standard flats in up-and-coming areas might be an option, but it’s important to weigh the trade-offs in terms of amenities and potential appreciation. And for singles, the expanded access to 2-room flexi flats offers greater choice and flexibility.
As always, careful consideration of your individual needs, budget, and long-term plans is crucial when making a decision about your future home.
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