Feb 2022 BTO exercise sees strong demand for flats in Geylang and Kallang/Whampoa PLH

SINGAPORE (EDGEPROP) - As at 5pm on Feb 23, 24,748 applications have been received for the 3,953 flats available under HDB’s February 2022 Built-To-Order exercise. This translates to an average application rate of 6.3.

This is up from the 4.4 application rate achieved in the last BTO sales exercise in November 2021, when HDB launched 4,501 new flats. (Find HDB flats for rent or sale with our Singapore HDB directory)

The new flats launched in the February 2022 exercise are spread across six projects.

Demand was strongest for the two projects located in mature estates, namely Dakota Crest in Geylang as well as King George’s Heights in Kallang/Whampoa. King George’s Heights is also the second project under the Prime Location Housing (PLH) model.

Dakota Crest saw the highest overall application rate out of all the projects at 17.4 times, based on 7,712 applications received as of 5pm for the 443 units available. Its four-room flats attracted the most interest, with more than 6,294 applications received for the 242 units available, translating to an application rate of 26 times.

Ismail Gafoor, CEO of PropNex Realty, notes that the popularity of the flats at this project was not unexpected, given its close location to the Dakota and Mountbatten MRT stations, along with its attractive subsidized pricing.

Lee Sze Teck, senior director (research) at Huttons Asia, believes that the demand for the Dakota Crest units may have been boosted by applicants who missed out on the previous launch in Dakota during the August 2020 BTO exercise, which also saw strong demand. “Those who missed out selecting the flat during Aug 2020 BTO exercise may have reapplied again and intensified the competition in the February 2022 BTO exercise,” he remarks.

King George’s Heights has an application rate of 13.3 times as of 5pm, with 5,305 applications received for the 398 four-room flats available. The figure surpasses the 8.2 application rate seen for River Peaks I and II, the pilot PLH project launched in Rochor during the November 2021 BTO sales exercise comprising 960 units.

For 4-room flats, the interest in the King George’s Heights BTO was also stronger than the Rochor project, with an application rate of 16 times and 10.3 times respectively.

“It is likely that some applicants who have previously held back from applying for the Rochor pilot PLH project due to fear of the uncertainty, could have gotten over earlier doubts and went ahead to apply for King George’s Heights in this February’s BTO exercise,” comments PropNex’s Gafoor.

King George’s Heights’ attractive subsidized pricing, as well as the fewer units available, could also have helped to boost demand and drive up its application rate, he says.

The projects in Yishun and Tengah achieved an overall subscription rate of 3.6 and 4 times respectively. For these non-mature estates, application rates were highest for the smaller two-room units.

The next BTO sales exercise will be in May 2022, with projects located in locations such as Bukit Merah, Queenstown (Ghim Moh), and Toa Payoh. “Given the attractive locations of the projects in the May line-up, we may see an even larger turn-out of applicants,” says Gafoor.