Demand from first-time buyers down in BTO exercise

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For the first time since May last year, there were more than enough new units to go around for first-time buyers in the latest Build-to-Order (BTO) exercise.

Application rates dropped from 1.4 in the previous exercise to 0.9 in the bidding that closed on Wednesday (May 28).

This suggested that the backlog for BTO units among this group has been cleared, said analysts, who also noted that some of these buyers might have turned to units under the Sale of Balance Flats (SBF).

The latest BTO exercise is the third since National Development Minister Khaw Boon Wan announced in December that the Government would slow down the supply of new public flats from this year as supply and demand for public housing return to equilibrium.

The trend led one analyst to suggest that more flats could be allocated to second-timers and singles, although the bulk can be reserved for first-time buyers.

Analysts TODAY spoke to attributed the fall in first-timer BTO application rates to strong demand in the concurrent SBF exercise, as well as the clearing of the BTO queue for first-time buyers due to the ramped-up supply.

The latest exercise brings the total number of flats launched by the Housing and Development Board in the first half of the year to 13,091.

The next BTO launch will be held in July with 3,810 flats in Punggol, Sembawang, Toa Payoh, Woodlands and Yishun up for sale.