In the dynamic world of Singapore’s real estate market, excitement is mounting for 2024, as the Housing Development Board (HDB) has revealed intentions to release 19,600 additional Build-To-Order (BTO) flats across three separate BTO operations. This action represents a major shift in the city-state’s real estate market.

The data is compelling: the amount of new flats offered this year is the lowest since 2021. To put things in context, there were 17,100 flats available in 2021, compared to 23,200 and 22,800 flats in 2022 and 2023, respectively. It’s certain that 2024 is going to have its own special dynamics.

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With three BTO exercises and one Sale of Balance Flats (SBF) activity every year, HDB will start a new release schedule in 2024. New flat classifications will be introduced in the October 2024 BTO sales exercise, with the Standard, Plus, and Prime categories available for prospective homeowners to peruse.

Approximately 2,800 of the 19,600 flats expected to be up for sale this year are scheduled to be completed in less than three years. Compared to the 732 flats with a comparable timeframe in 2023, this indicates a significant rise. What’s even more encouraging is that 75% of the BTO flats planned for 2024 are expected to be finished in four years or less, which would surely shorten wait periods for enthusiastic applicants and return them to pre-pandemic levels.

According to HDB, the decision to reduce the frequency of BTO launch exercises was made in response to the stabilisation of BTO application rates. Since October 2023, when HDB tightened the regulations governing BTO sales exercises, this pattern has been seen.

Currently, HDB will immediately cancel all previous applications submitted by the same applicant for future BTO or Sale of Balance Flat (SBF) operations in the event that they are not selected for a flat.

During each BTO sales launch, applicants may only choose one town or estate and one flat type, under the present laws. This method seems to be working, as shown by the median application rates for first-time applicants seeking three-room or bigger flats in the October and December 2023 sale launches, which witnessed a considerable decline to 0.9 and 0.8. This is in sharp contrast to the application rates of 1.9 and 2.3 in February and May of 2023, respectively, before the new regulation was put into effect.

Key executive officer of ERA Realty Eugene Lim feels that applicants may gain a lot from fewer BTO sales exercises as each BTO sales launch will provide a wider selection of flat possibilities, offering them more selections. Furthermore, by using a different strategy, the selection exercises will be more clearly separated, giving house purchasers more assurance. Additionally, it improves the overall experience of rejected BTO candidates by giving them more time to be ready for the next sales launch.

With pride, HDB announces that out of 73 projects that were postponed because to the pandemic between October 2020 and December 2023, around 80% of them were successfully completed. The remaining 19 projects are currently in the building phase and should be finished by early 2025.

In the near future, HDB intends to offer some 4,100 BTO flats in a number of localities, including Bedok, Queenstown, Choa Chu Kang, Hougang, Punggol, and Woodlands, during the next BTO sales exercise, which is set for February. Furthermore, around 1,500 SBF flats will be added across different cities and estates, giving potential homeowners even more choices.

These buildings offer a dynamic and lively scene for both house searchers and property aficionados alike, as Singapore’s property market continues to expand. As the year progresses, keep checking back for the most recent information, which presents fascinating chances in the Singaporean real estate market.