The upcoming Build-To-Order (BTO) exercise in October will see a bumper crop of flats compared to this year’s previous two exercises. A total of 9,060 flats across 10 projects in eight HDB towns will be available for application (see Table 1). In comparison, the July BTO exercise offered 5,547 flats across eight projects in seven towns; slightly more than the 5,032 flats across five projects in four towns in the February BTO exercise.
Of the 10 projects in the upcoming BTO exercise, four are located in three towns — Bukit Merah, Toa Payoh, and Bishan — in the Central Region. These projects are expected to be launched under the Prime or Plus categories due to their central locations and proximity to amenities. Notably, none of the four projects will feature five-room or larger flats, so bigger households keen to live in these towns might have to turn to the resale market to meet their housing needs.
Furthermore, one of the two projects in Bukit Merah will be the first BTO project in the Greater Southern Waterfront, marking the start of residential development in the precinct. The Greater Southern Waterfront is expected to have about 6,000 new HDB flats and 3,000 private homes.
Located on the site of the former Police Academy, the upcoming Toa Payoh project is expected to deliver the first BTO flats in the new Mount Pleasant neighbourhood. The site is expected to house four projects totalling 6,000 flats.
The remaining six projects are expected to be launched as Standard flats, given their locations outside the Central Region. Due to the number of projects in the upcoming BTO exercise, we will analyse them in two separate articles. In this article, we will do a deep dive into the four projects in the Central Region, while the remaining six projects will be discussed in the next article.
BTO#1 & 2: Bukit Merah
There will be two projects in Bukit Merah, offering approximately 1,890 flats, in the upcoming BTO exercise (see Table 2). Despite being in the same HDB town, the projects are not located near each other. However, their central locations and close proximity to MRT stations mean that the flats are expected to be launched under the Prime or Plus categories.
Of the two, the smaller project with 870 flats will be located on the site formerly occupied by Keppel Club. Located near Telok Blangah MRT Station, it is also the first BTO project in the Greater Southern Waterfront. Hence, future residents will benefit from having a first-mover advantage.
The larger project, located along Jalan Bukit Merah, will comprise 1,020 flats. It is near to Redhill MRT Station as well as two BTO projects launched in July.
The Bukit Merah BTO project along Telok Blangah is a short walk from Telok Blangah MRT Station on the Circle Line (CCL) (see Map 1). The CCL is currently incomplete as three stations have yet to start operations. However, these stations are expected to open next year, so future residents of the upcoming BTO project should benefit from having a direct MRT line to the CBD by the time they collect their keys.
The project is also expected to appeal to nature lovers and sporty families, given its close proximity to the Southern Ridges and Labrador Nature Park.
The second Bukit Merah BTO project is in a convenient and well-connected location. It is within walking distance of Redhill MRT Station and a short drive from the Ayer Rajah Expressway (see Map 2). The project is also near to two wet markets, a hawker centre and several schools.
Given their convenient and well-connected locations, both upcoming Bukit Merah BTO projects are expected to be launched under the Prime or Plus categories. As such, the flats are likely to be more costly. Furthermore, future residents can expect a longer minimum occupation period (MOP) of 10 years and may also be subject to a higher rate for the subsidy clawback.
Given the high subscription rates for flats in Bukit Merah during the most recent BTO exercise in July, intense competition for both upcoming projects can be expected. Among the two, applicants for the project along Jalan Bukit Merah may stand a higher chance as it offers over 1,000 flats. However, this project has only two flat types, compared to three at the other Bukit Merah project.
Previous BTO projects in Bukit Merah
Two Bukit Merah projects, Alexandra Peaks and Alexandra Vista, were made available for application during the most recent BTO exercise in July (see Table 3). Both projects were launched under the Prime category due to their proximity to Redhill MRT Station and amenities such as Redhill Market and Food Centre.
Alexandra Peaks and Alexandra Vista are also a short walk from the upcoming Bukit Merah BTO project along Jalan Bukit Merah, so applicants for the new project might want to use the pricing of the launched projects as a guide.
Given their close proximity, unsuccessful applicants for Alexandra Peaks and Alexandra Vista are likely to apply for the upcoming project along Jalan Bukit Merah, further intensifying competition for the soon-to-be-launched BTO project.
Resale prices for HDB flats in Bukit Merah
The average resale price for four-room flats in Bukit Merah ($891 psf) is significantly higher than that of two-room ($700 psf) and three-room ($739 psf) flats (see Chart 1). Despite having the highest price, four-room flats recorded the lowest price growth of 33.4% since 2020. In comparison, two-room and three-room flats saw higher price growth of 41.4% and 37.6%, respectively.
Source: EdgeProp Market Trends (as at 4 September 2024)
Which Bukit Merah project to choose?
Nature lovers might prefer the Bukit Merah BTO project along Telok Blangah Road due to its proximity to two parks. Future residents will also appreciate being a short walk away from Telok Blangah MRT Station.
Among the two Bukit Merah projects, only the one along Telok Blangah Road offers three-room flats. Hence, smaller households that require less space might prefer this project. As three-room flats usually cost less than larger units, the project may also appeal to buyers with a modest housing budget and are keen to live in Bukit Merah.
However, parents of school-going children might prefer the project along Jalan Bukit Merah, as there are more schools within a 1 km radius. This project may also appeal to those who value convenience over greenery, given its proximity to more amenities compared to the other Bukit Merah project.
BTO#3: Toa Payoh
The upcoming project in Toa Payoh will be the first BTO project in Mount Pleasant, which is expected to have 6,000 new flats upon completion. Named Mount Pleasant Crest, the upcoming project sits on the site of the Old Police Academy. Four blocks from the former academy will be conserved and integrated into the new Mount Pleasant development.
Mount Pleasant Crest is a short walk from the upcoming Mount Pleasant MRT Station (see Map 3). The MRT station will open in tandem with nearby housing developments, and is therefore likely to be operational upon completion of Mount Pleasant Crest. The project’s connectivity is further enhanced by its proximity to the Pan Island Expressway.
Mount Pleasant Crest will feature 1,350 flats for application (see Table 4) and 270 public rental flats. Applicants can also opt for a “white flat” layout, which is an open-concept design without partition walls.
This is the second BTO project to offer the “white flat” layout. The first project was Crawford Heights along Crawford Street , that was launched during the BTO exercise in October last year. According to HDB, four out of 10 applicants for flats in Crawford Heights opted for the open-concept layout. The “white flat” option allows buyers to customise the layout of their home to better suit the needs of their household.
Mount Pleasant Crest is also near several reputable schools, which should increase its appeal to parents with school-going children. Apart from schools and the facilities within the project, there are limited amenities within walking distance. As Mount Pleasant Crest is the first BTO project in the new estate, future residents can expect more amenities to be built in tandem with the estate’s development. Furthermore, the upcoming BTO project is a short drive from the established Toa Payoh town centre.
A drawback for the project is its longer MOP of 10 years, as Mount Pleasant Crest is expected to be launched under the Prime or Plus categories due to its central location and proximity to numerous schools and a MRT station.
Previous BTO project in Toa Payoh
The previous BTO exercise in July featured one project in Toa Payoh (see Table 5). Named Toa Payoh Ascent, it was launched as a Prime project because it is adjacent to the dual-line Caldecott MRT Station, which serves the Circle Line (CCL) and Thomson–East Coast Line (TEL).
Given the overwhelming number of applicants for Toa Payoh Ascent, interest in the upcoming Toa Payoh BTO project is expected to be high, especially since both projects are less than 2 km apart. Unsuccessful applicants for Toa Payoh Ascent are likely to submit an application for the upcoming project in the same town.
Resale prices for HDB flats in Toa Payoh
The average resale price for four-room flats in Toa Payoh ($854 psf) is significantly higher than that of two-room ($647 psf) and three-room ($607 psf) flats (see Chart 2).
Flats in Toa Payoh have seen strong price growth due to the high prices paid for flats in Bidadari, whose owners have recently completed their MOP. Three-room flats have shown the strongest growth of 61.4% since 2020, while two-room and four-room flats have recorded rises of 52.6% and 51.2%, respectively. According to HDB’s latest annual report, Bidadari is part of Toa Payoh town.
Source: EdgeProp Market Trends (as at 5 September 2024)
BTO#4: Bishan
As part of the announcements for the Draft Master Plan 2025, Bishan has been designated as Singapore’s next sub-regional centre. The upcoming BTO project in Bishan is a short walk from the town centre so the flats are expected to be launched under the Prime or Plus categories.
Competition for the new flats is expected to be keen, as the project has only 530 homes; the fewest among all projects in this BTO exercise (see Table 6). Furthermore, the project is near numerous reputable schools, which will appeal to many parents and, consequently, increase the number of applicants. Additionally, the project might attract even more applicants due to Bishan’s new designation as a sub-regional centre.
The upcoming project is well-connected, as it is near the dual-line Bishan MRT Station, which serves the CCL and North–South Line (NSL). It is also near to Bishan Bus Interchange and the Central Expressway (see Map 4).
Its excellent location means that the project is likely to be launched under the Prime or Plus categories. Applicants should note that flats in these two categories come with stricter restrictions, including a longer MOP.
The attractive locational attributes of the project are expected to draw many applicants. Furthermore, this year’s previous two BTO exercises did not feature any projects in Bishan, which will add fuel to the already keen competition.
Competition is expected to be especially keen for the two-room flats, given the limited supply in the resale market. According to HDB’s latest annual report, there are only 29 two-room flats in Bishan. Moreover, no resale transactions for two-room flats in Bishan have been recorded since 2015.
Resale prices for HDB flats in Bishan
Since 2021, the average resale price for three-room flats in Bishan ($742 psf) has trended above that of four-room flats ($741 psf) in the same town (see Chart 3). This could be because four-room flats, which recorded a slightly stronger price growth of 36.2%, have outpaced the three-room flats, which grew by 35.6%.
Source: EdgeProp Market Trends (as at 5 September 2024)
Price comparison
Notably, the average resale prices for two-room to four-room flats in Bukit Merah surpass those of their peers in the Central Region (see Table 7). The high resale prices for flats in Bukit Merah are expected to encourage more homebuyers to apply for the comparatively more affordable BTO flats in the town.
In contrast, all three flat types in Toa Payoh recorded average resale prices lower than their peers in the Central Region. In Bishan, the average resale price for three-room flats is higher than that of similar flats in the Central Region, while four-room flats reported a lower average resale price compared to their Central Region counterparts.
Notably, the overall average resale price for all types of HDB flats in Bukit Merah ($815 psf) is significantly higher than that for Toa Payoh ($735 psf) and Bishan ($765 psf) (see Chart 4). Among the three towns, Bukit Merah is the only one whose overall average not only exceeds the $800 psf threshold but also surpasses that of the Central Region ($780 psf).
Source: EdgeProp Market Trends (as at 5 September 2024)
Conclusion
The upcoming BTO exercise in October will be an interesting one for several reasons. Applicants, especially first-timers, might see a higher chance of success due to the bumper crop of 9,060 available flats across 10 projects in eight towns.
Of the 10 projects, four are in the Central Region and are likely to be launched under the Prime or Plus categories. These projects are expected to attract many applicants because of their central locations and proximity to amenities.
In addition to their attractive locations, the BTO projects also have other features that might appeal to applicants. The Bukit Merah project along Telok Blangah Road is the first BTO project in the Greater Southern Waterfront, while the Toa Payoh project is the first in Mount Pleasant. Additionally, the Toa Payoh project will offer “white flat” layouts. Lastly, the Bishan project is near Bishan town centre, which is expected to undergo a transformation into Singapore’s newest sub-regional centre.
This article focuses on the four projects in the Central Region. Stay tuned for the next article, which will analyse the remaining six projects located outside the Central Region.
This version of article written by Elizabeth Choong and first appeared at EdgeProp Singapore.
Photo: Samuel Isaac Chua/EdgeProp Singapore