BTO application likely to fall, buyers may turn to the resale market
Singapore. Individuals who turned down their chance to purchase an HDB BTO flat will be bumped down in the queue, according to a new rule tightening which aims to shorten lines for public housing flats.
As a result, analysts predict BTO application rates to fall. However, flat allocation is likely to improve. Buyers are also expected to turn to the resale market.
Queue drop-outs may include people who applied multiple times, and target mature estates or specific flat types, said Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie.
According to PropNex Realty chief executive officer Ismail Gafoor, the new rule “sends a clear message to (homebuyers to) take their BTO or SBF flat applications more seriously, rather than applying just to try their luck or to take an opportunistic shot.”
Since 2017, around 40% of applicants invited to book a flat have either declined the offer or missed their appointment. This is around 10,000 applicants annually.
“For some, the remaining flats may be out of their budget. For others, they might be considering other housing options, or prefer flats with specific attributes,” shared Minister for National Development Desmond Lee.
More from OMY: BTO vs Resale Flats: Which Is Better?