In 2024, There Will be 3 BTO Exercises Instead of 4, With About 19,600 Flats to be Launched

By
Sushmita Kaur
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Going to BTO this year? You’re in luck because 19,600 new flats are set to launch this year.

In previous years, BTO sales exercises were typically carried out four times annually, in February, May, August, and November, while Sale of Balance Flats (SBF) flats exercises occurred twice a year, in May and November.

However, this year, there will be three BTO exercise and one SBF exercise.

Despite the reduction in the number of exercises, there’s no need to worry about steep competition. In fact, you might have a better chance of securing your desired flat!

Here’s what you need to know.

Three BTO Exercise will be Held in February, June, and October

February 2024 will kick off with a BTO sales exercise, alongside SBF flats. The remaining two BTO exercises will take place in June and October.

In the first launch of the year, approximately 4,100 BTO flats in Bedok, Queenstown, Choa Chu Kang, Hougang, Punggol, and Woodlands will be available for sale, along with around 1,500 SBF flats spread across various towns and estates.

The reduction in BTO launches this year is primarily attributed to the decreased application rates among first-time buyers. In 2023, the median number of first-time home buyers for all types of flats was 1.9, a significant drop from the pre-pandemic rate of 3.7 in 2019.

However, the reduced launches bring some benefits. There will be a bigger housing supply at each launch which gives you a wider variety of flats and locations to choose from. This means that you might achieve a greater chance of success in finding your dream flat that meets your requirements.

HDB has stated in a recently released press release that this adjustment will reduce the extent of overlap between the selection exercises and provide greater certainty for homebuyers.

If you’re eager to apply for BTO, there’s even better news for you. Out of the 19,600 flats, more than 2,800 will be Shorter Waiting Time (SWT) flats, which means their waiting time is less than three years. This is a significant increase compared to 2023, where only a fraction of flats had such short waiting times.

In fact, HDB is actively working to ensure that 75% of the new flats launching this year have a waiting time of four years or less. This is an increase from 2023, where an estimate of 70% of flats had waiting times of four years or less. This reflects the pre-pandemic period when BTO projects typically had waiting times of three to four years.

HDB aims to offer 100,000 flats from 2021-2025 and it seems that they are on track to achieve their goal. They had offered 17,100 flays in 2021, 23,200 flats in 2022, 22,800 flats in 2023 and now, 19,600 flats this year.

Additionally, between October 2020 and December 2023, HDB successfully completed 80% (a total of 73) of pandemic-delayed projects and aims to complete all such projects by 2025.

New Classification of Flats will be Launched This Year

A significant change in the BTO landscape this year is the introduction of a new classification for flat. In February and June, the flats will still be identified as mature and non-mature flats.

However, from October 2024, the flats will be classified in three categories: Standard, Plus and Prime. It’s important to note that this reclassification will not apply to existing flats or flats that have already been launched.

I’m sure you have already heard of this as it was mentioned by PM Lee during the 2023 National Day Rally Speech. However, here’s a quick refresher for those with short-term memory.

Standard flats will continue to make up majority of housing supply, featuring a five-year Minimum Occupation Period (MPO) and standard subsidies.

Plus flats, the newest category, will be situated in more desirable locations, such as those near MRT stations or town centers. For example, consider the Bayshore project, which not only boasts proximity to East Coast Park but is also conveniently located near two MRT stations, Siglap Community Club, and a shopping mall.

Owners of Plus flats will have a 10-year MOP and will be required to return a portion of the resale price to HDB if they decide to sell.

Prime flats are located in the most coveted areas in Singapore, typically closer to the central region. Similar to Plus flats, Prime flat owners will have a 10-year MOP and will need to return a portion of the resale price to HDB upon selling.

Singles (who are at least 35-years-old), you will also be eligible to apply for 2-room Flexi-flats across all three categories!

Looking to apply for BTO in February?

For those looking to apply for BTO in February, it’s crucial to be aware of the application timeline. HDB advises applicants to apply for HDB Flat Eligibility (HFE) letter by 15 January 2024.

HFE letters are normally processed within a month. Therefore, missing the deadline means you won’t receive your HFE letter in time for both BTO and SBF flat applications in February.

However, if you do not receive the HFE letter on time, don’t worry. The letter remains valid for nine months, allowing you to apply for subsequent BTO exercises. Alternatively, you can explore the option of buying a resale flat once you receive your valid HFE letter.

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Sushmita Kaur
Email: [email protected]