The Surge in Demand for Two-Room Flexi Flats
As the world’s top investment manager and financial journalist, I bring you the latest insights into the overwhelming demand for two-room flexi flats in the ongoing October HDB Build-To-Order (BTO) sales exercise. Let’s delve into the details:
Key Highlights:
- Singles are driving the surge in BTO applications, with as many as 20 applicants per flat in some projects.
- Over 28,200 applications have been received across all flat types, marking the highest number since November 2022.
- More than 8,500 flats were launched in October under a new framework, categorizing projects as Standard, Plus, or Prime based on various factors.
- Prime and Plus categories come with stricter resale conditions and are closer to amenities like MRT stations and town centers.
- Eligible singles can now apply for two-room flexi flats in any location, a first-time opportunity.
Analysis and Insights:
The surge in applications is driven by pent-up demand from first-time singles, accounting for about 20% of total applications. Interestingly, this echoes the strong demand seen back in 2013 when first-time singles were first allowed to purchase two-room flexi flats from HDB.
HDB expects demand from singles to stabilize over time as the supply of two-room flexi flats increases. The high application rate in October’s sales exercise can be attributed to the attractive attributes of the projects and the shorter waiting time flats on offer.
Regional Demand:
Notable application rates include more than 29 applicants vying for each of the 130 two-room flexi flats in Bukit Batok, with a waiting time of around two years. Flats in Ang Mo Kio and Pasir Ris are also popular among singles, with application rates close to the median rate of 22.2 across all projects.
For first-time families, the median application rate for three-room and larger flats stood at 2.1, slightly higher than previous launches. HDB anticipates the application rate to be lower than the pre-pandemic norm by the end of the exercise.
Conclusion:
Overall, the surge in demand for two-room flexi flats reflects the changing preferences and needs of homebuyers, especially singles. Understanding these trends and factors can help individuals make informed decisions about their housing choices and investments for a secure financial future.