SINGAPORE — The first batch of two-room Build-to-Order flats set aside for singles received overwhelming demand yesterday, a day after applications were open.

Under the HDB’s latest BTO launch, 155 two-room units in two projects in Sengkang and Yishun, respectively, were allocated to singles aged 35 and above.

At at 5pm yesterday, 1,876 singles were vying for 69 units in the Sengkang project, which worked out to an application rate of 27.2. In comparison, the application rate for the project’s two-room units from couples buying a BTO unit for the first-time was 0.4.

At the Yishun project, there were 1,032 applications from singles for 86 units, or an application rate of 12 — compared to an application rate of 0.4 for first timers for the two-room flats.

Sales assistant Kay Siew Tin, 50, who is single, will be applying for a two-room unit at Sengkang.

Ms Kay, who is living with her sister in Bedok North, said she relished the chance to call a place her own.

“I have been waiting for this since the Government made the announcement,” said Ms Kay, who also welcomed the extension of the housing grants to singles like her. As her take home pay is less than S$1,125 a month, she is eligible for both the Additional CPF Housing Grant (AHG) of up to S$20,000 and the Special CPF Housing Grant (SHG) of S$10,000.

The strong demand surprised some analysts who had expected lukewarm reception to the offerings because of the locations and size of the units, which were 35 sq m or 45 sq m. Nevertheless, they attributed the demand to the affordability of the units, the small number of two-room flats allocated to singles under this exercise, and the high prices of resale flats.

PropNex CEO Mohamed Ismail felt that the “bundled goodies such as the AHG and the SHG have provided further incentives for buyers. (Singles) who are earning less than S$2,500 have the greater motivation to go into the BTO market as it is a greater challenge for them to buy in the resale market with the high cash over valuation”.

International Property Advisor Chief Executive Ku Swee Yong said that given the pent up demand from singles, who previously could only buy resale flats, many could have rushed in to take advantage of the affordability and the “anticipated significant price appreciation” of such units.

But Suntec Real Estate Head of Research and Consultancy Colin Tan felt that these units might not command a high resale value, among the “many unknowns” attached to these new offerings. The analysts attributed the higher demand from singles for the flats in Sengkang, as compared to Yishun, to its proximity to the Layar LRT Station and the fact that some of the units will be ready in 18 months.