Location is Still King in the Oct 2024 BTO Race – Or Is It?

The October 2024 BTO exercise reaffirmed a long-standing truth in Singapore’s housing market: location is still king. With 33,000 applicants vying for 8,573 flats, the results clearly show that buyers prioritise central locations over affordability alone. But there’s another factor that’s just as crucial: the waiting period. The shorter, the better — this was evident in the Oct 2024 BTO results, where 7 out of 10 flats with waiting times of 4 years or less saw the highest demand.

Location vs Waiting Period vs Affordability

Across the 15 projects offered in the October 2024 BTO exercise, flats in better-connected, more accessible areas were in significantly higher demand compared to those in less central locations. A shorter waiting period for an earlier move-in also proved to be a crucial factor for many buyers.

For example, Taman Jurong Skyline in Jurong West was the most affordable project this round, yet it saw dismal application rates — just 0.5 for 3-room flats and 0.4 for 4- to 5-room and 3Gen units. The development’s less desirable location clearly deterred buyers, despite its affordability. The longer waiting time didn’t help with the demand either.

In stark contrast, Costa Riviera I & II in Pasir Ris and WestBrickville @ Bukit Batok generated significant interest. At Costa Riviera, 5-room and 3Gen flats drew about 6 applicants per unit. Despite Pasir Ris being further from the city centre, the estate offers a family-friendly environment, access to nature, and good connectivity. More importantly, it only has a 3-year waiting period.

Meanwhile, WestBrickville @ Bukit Batok saw its 5-room units snapped up at an application rate of 3.5 times. Bukit Batok’s strategic location near Jurong East’s growing commercial hub, combined with a shorter waiting period of just 2 years, made it especially attractive to buyers.

While buyers continue to prioritise proximity to amenities, connectivity, and shorter commutes, a shorter waiting period is equally important.

The Standard, Plus, Prime Rules and Restrictions

The introduction of the Standard, Plus, and Prime flat categories brought a new layer of conditions and restrictions to the BTO exercise. However, even with stricter rules, Prime and Plus flats still saw strong demand. It’s evident that buyers are willing to adhere to the 10-year MOP and higher subsidy clawbacks for a better location, as long as the waiting times remain reasonable.

1. Standard Flats

Standard flats are the least restrictive, making them popular with buyers seeking flexibility and shorter waiting times. At WestBrickville, where the waiting period is just two years, three-room flats had a 1.7 times application rate, while four-room flats were three times subscribed. The faster move-in times made a significant difference here, especially for those prioritising immediate housing.

2. Plus Flats

With a longer MOP of 10 years and higher subsidy clawbacks, Plus flats still attracted strong demand. At Central Trio @ AMK in Ang Mo Kio, four-room units saw a 3.9 times application rate. The appeal of a prime location outweighed the stricter rules, and although the waiting period is longer than Standard flats, it was still within a reasonable timeframe for buyers focused on location.

3. Prime Flats

Though the restrictions on Prime flats are the strictest—including the 10-year MOP and income ceilings—the lone Prime project, Crawford Heights in Kallang-Whampoa, still drew significant interest. First-timer families applied at a rate of 2.6 times for four-room flats, showing that many are willing to trade some flexibility and wait longer in exchange for the advantages of living in a central area with excellent amenities and transport links.

So, what’s the real deal?

When you consider location, flat categories, and waiting periods together, a clear trend emerges. While the new flat categories influence flexibility and restrictions, location and waiting time ultimately tip the scales. Well-connected areas, even with stricter rules and longer MOPs, consistently saw higher application rates when combined with shorter waiting periods.

For instance, compare Central Trio @ AMK in Ang Mo Kio with Bayshore Vista in Bedok, both of which offer Plus flats. Central Trio had a 3.9 times application rate, whereas Bayshore Vista saw a lower rate of 2.6 times, proving once again that the closer you are to key amenities and transport — and the sooner you can move in — the higher the demand.

The October 2024 BTO results drive home one critical point: location remains paramount, but waiting periods are just as important in influencing buyer decisions.

Standard flats continue to be in demand due to their flexibility and shorter waiting times, while Plus and Prime flats maintain strong appeal despite their stricter restrictions, provided they are in attractive, well-connected locations with reasonable waiting periods.

Oct 2024 BTO Application Rates for 2-room Flexi BTO flats

A. Standard BTO Projects

B. Plus BTO Projects

Oct 2024 BTO Application Rates for 3-room and bigger BTO flats

A. Standard BTO Projects

B. Plus BTO Projects

C. Prime BTO Projects

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