June BTO exercise: Lower demand for shorter waiting time flats as more flock to Prime projects

Lakeview Cascadia at Bishan had the second-highest number of applicants overall. The project’s two-room flexi units had an application rate of 7.3 among first-timer singles, while the four-room units had an application rate of 3.7 among first-timer families. 

Ms Sun said the high demand could be attributed to the limited supply of new flats in Bishan, which is traditionally a popular housing estate among young couples.

“Given that the new flats are within walking distance of an MRT station and are close to a few top schools, the project will be a huge draw for families with school-going children prioritising convenience,” she said. 

Demand for these projects was high despite restrictions under the Prime classification, which comes with a 10-year minimum occupation period (MOP) and higher subsidy clawbacks. This means that homeowners must pay back a percentage of a flat’s resale price or valuation to the government when first selling their homes.

Berlayar Rise and Lakeview Cascadia have a subsidy clawback of 14 per cent and 10 per cent, respectively.

The strong take-up for both projects shows that buyers remain willing to accept tighter resale conditions where new flats are affordable and well located, said Mr Eugene Lim, key executive officer at ERA Singapore.

He added that the relative affordability of four-room flats at both projects likely made them a “palatable entry point” for first-time buyers.