The December Build-To-Order (BTO) Sales Exercise
The Housing and Development Board (HDB) recently launched 6,057 new Build-To-Order (BTO) flats for sale. However, property analysts have differing opinions on the potential outcome of the December BTO sales exercise. This is mainly due to the holiday season, which typically sees a lull in property market activity, as well as the implementation of tighter non-selection rules.
Impact of Non-Selection Rules
According to Christine Sun, the Senior Vice President of Research and Analytics at OrangeTee & Tie, the introduction of non-selection rules is expected to reduce the number of applications for BTO flats. These rules are aimed at discouraging less serious buyers from applying for the flats. Additionally, applicants who have already secured a queue number in the previous October BTO sales exercise will not be eligible to apply in December.
Predicted Dip in Demand
As a result, it is predicted that there will be a slight dip in demand for BTO flats in December compared to the October sales exercise. The tighter non-selection rules and the exclusion of certain applicants are likely to contribute to this decrease in demand.
Uncertain Outcome
Overall, the outcome of the December BTO sales exercise remains uncertain. While the holiday lull and the implementation of stricter non-selection rules may dampen demand, other factors such as location and pricing of the flats could still attract potential buyers. Only time will tell how the market will respond to these factors and whether the expected dip in demand will materialize.
Related link: https://sbr.com.sg/residential-property/in-focus/analysts-mixed-december-bto-exercise