The number of applicants under the Parenthood Priority Scheme dropped from 10,000 in 2013 to 8,000 last year, reported the media.
Property experts and HDB attributed the decline to more first-timer families who managed to buy flats.
“The housing needs of this group have already been met,” stated R’ST Research Director Ong Kah Seng.
In concurring, SLP International research head Nicholas Mak pointed to the dropping first-timer application rates for Build-to-Order (BTO) flats.
In 2013, an average of 1.7 applicants competed for each new flat. The rate stood between 1.0 and 1.7 in 1H 2014. It was even lower for some projects at less than 1.0, which means that applicants were guaranteed a unit.
Analysts believe that last year’s decreased BTO supply may have contributed to the drop in the number of applications. In 2014, the government offered 22,455 BTO flats, down from 2013’s 26,494.
Century21 Chief Executive Ku Swee Yong noted some potential scheme applicants may have been drawn to the cooling resale market.
“Now that the resale market is cooling, some of these families can turn to resale flats, where they can be more selective about the location,” he said.
Image source: MND
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
