Over 8,500 flats set to be launched in October BTO exercise, about half may be Plus units: Analysts

SINGAPORE: More than 8,500 flats are set to be launched in the Build-to-Order (BTO) exercise in October, with property analysts expecting nearly half to be under the new Plus category.

Analysts told CNA on Friday (Jun 21) that demand for these new Plus flats, which are in "choicer locations" within heartland regions, is expected to be high.

The projects were posted on the Housing and Development Board's (HDB) Flat Portal on Jun 19, with preliminary information including the locations and numbers of flats.

This is the first BTO exercise where the new Prime, Plus and Standard categories will be used, with HDB doing away with the decades-old labels of mature and non-mature estates.

Flats in Prime BTO projects, located in the central region, will have the same conditions as flats under the current Prime Location Housing scheme. Standard flats come with the same restrictions currently applied to all BTO flats.

Plus flats – the new category announced at the National Day Rally last year – will be near MRT stations or town centres. They come with a 10-year minimum occupation period and flat owners will have to return to HDB a portion of the resale price that is reflective of the extra subsidies they receive.

PLUS PROJECTS

All four property analysts who spoke to CNA said that the Bayshore projects are likely to fall under the new Plus category.

HDB said in October last year that the Bayshore projects could "potentially be considered for launch under the new Plus model", given its attractive location and proximity to transport nodes and amenities.

The two projects will be near Bayshore MRT station, one of seven new stations along the fourth stage of the Thomson-East Coast Line (TEL4). 

The seven new stations opened to the public for a preview from noon to 9pm on Friday, before passenger service officially starts on Sunday.

Ms Christine Sun, chief researcher at OrangeTee Group, said the project next to Kembangan MRT station may also be under the Plus model, along with the flats in Jurong West, Pasir Ris and Woodlands.

Huttons' senior director for data analytics Lee Sze Teck, as well as Singapore Realtors' head of research Mohan Sandrasegeran and ERA key executive officer Eugene Lim also agreed that Pasir Ris will most likely be a Plus project. The new Pasir Ris flats are next to the town centre and MRT station.

Mr Lim also cited Woodlands as a possible Plus project.

But Mr Sandrasegeran said that the "final classification will depend on the authorities' assessment of the site attributes and qualifications before an official announcement is made".

"This careful evaluation ensures that the classification accurately reflects the value and appeal of each location," he added.

DEMAND EXPECTED TO BE HIGH

Given the sea views and its proximity to upcoming amenities, all four analysts agreed that demand for the two Bayshore projects is expected to be high.

"The Bayshore BTOs are highly anticipated as they are next to the sea and will have full height windows to maximise the views," said Huttons' Mr Lee, noting that the area is predominantly private housing.

The nearest BTO launch was Bedok South Blossoms in May 2023, which drew three first-time applicants for every four-room flat. 

Mr Lee said the application rate for the Bayshore projects may be similar.

"The BTO projects in the Bayshore area exemplify the concept of Plus flats, as it enjoys an exceptionally favourable location between the Bayshore MRT station and the Bedok South MRT station," said Mr Sandrasegeran.

"The positioning underscores the project's alignment with the Plus model, offering residents convenient access to key transport links and amenities."

The other Bedok project next to Kembangan MRT station may also be "highly popular" among buyers, said Ms Sun.

With the project planned to be an integrated development, it will "draw in demand with the convenience of having shops at their doorstep", added Mr Lim.

Another project that is likely to be popular with buyers is the Pasir Ris project, which is expected to be under the new Plus model.

"The BTO projects in Pasir Ris may be the last two plots of land next to Pasir Ris MRT station, an integrated transport hub and the newly opened Pasir Ris mall. Some of the units may have unblocked views of the sea," said Mr Lee.

Mr Sandrasegeran noted that the new flats are close to many schools, including Elias Park, Casuarina and Pasir Ris primary schools, making it an ideal location for families with school-aged children.

Downtown East, a popular leisure and entertainment hub, is also close by.

The only launch in the north of Singapore is in Woodlands, with about 290 units on offer.

Mr Lim noted that the flats will be opposite Marsiling MRT station, which is "sure to attract buyers who prioritise convenience". 

HDB urged potential buyers who want to take part in the October BTO exercise to apply for an HDB Flat Eligibility (HFE) Letter early and to submit all required documents by Sep 15.