Overview of Ulu Pandan East which is slated for residential use. (Picture HDB)
SINGAPORE (EDGEPROP) – This month's Build-To-Order (BTO) exercise comprises 4,410 flats across five projects in four towns, which is significantly fewer than the 9,655 flats across 10 projects in five towns that were launched in the BTO exercise last November.
All flat types from last November's BTO exercise were oversubscribed. The sole exception being the three-room flats in Queenstown, which had an overall application rate of 0.9. Four-room flats in Kallang/Whampoa were the most popular, with an overall application rate of 11.3.
As part of Budget 2023, the Singapore government announced that first-time buyers who are young married couples aged 40 years and below or families with children will receive an additional ballot when they apply for a BTO flat. This measure is expected to be implemented later this year, so it will not benefit qualified applicants in the upcoming BTO exercise.
In addition, first-time buyers of resale HDB flats will receive more government grants. Eligible families will get grants of $80,000 (up from $50,000) if they are buying four-room or smaller flats, and $50,000 (up from $40,000) if they are buying larger flats. First-time buyers who are single will receive grants of $40,000 (up from $25,000) for four-room or smaller flats and $25,000 (up from $20,000) for larger flats. (Find HDB flats for rent or sale with our Singapore HDB directory)
While the grant may encourage more buyers to purchase resale HDB flats, it may not significantly improve affordability. The current tight supply market gives sellers the upper hand, and they are likely to take into account the additional grant and increase their asking price.
The upcoming BTO project along Farrer Park Road is expected to be launched as a Prime Location Public Housing (PLH) project due to its central location as well as close proximity to the Little India MRT Station and numerous amenities.
The other BTO project is located along Jalan Rajah. It is unlikely to be launched as a PLH project because the site is not within walking distance of any MRT stations, and there are limited nearby amenities.
The government previously announced that public housing would be built on Farrer Park Field, and the upcoming BTO project along Farrer Park Road is part of the new public housing planned for the site.
Future residents of the Farrer Park Road BTO project will appreciate being within walking distance of the dual-line Little India MRT Station. They will also enjoy the convenience of being only one MRT stop away from the upcoming Piccadilly Galleria, which is the retail component of an integrated development that will have a direct link to Farrer Park MRT Station. Piccadilly Grand forms the residential component, and the whole development is expected to obtain temporary occupation period (TOP) in 2026.
There are many other amenities nearby including Tekka Market and Mustafa Centre. Orchard Road and Bugis are also a short drive away.
Parents will be pleased to know that Farrer Park Primary School and Stamford Primary School are within a 1km radius, while the reputable Anglo-Chinese School (Junior) and St. Joseph’s Institution Junior are within a 2km radius.
However, living in the heart of Little India might not suit those who prefer a quiet living environment. The site is near Little India Bus Terminal, which provides easy connectivity to public transport for nearby residents but also results in more noise and traffic jams. Residents may also have to put up with ambulance sirens at odd hours from the nearby KK Women’s and Children’s Hospital.
Both BTO projects along Jalan Rajah and Farrer Park Road are in Kallang/Whampoa but they have very different locational attributes.
Toa Payoh MRT Station is the nearest MRT station to the Jalan Rajah project but it is not within walking distance. On bright side, the site is near Toa Payoh Stadium, Sports Hall and Swimming Complex as well as Kallang River. These nearby recreational facilities make the BTO project ideal for sporty families. Future residents should be able to meet their daily needs at the nearby Balestier Plaza, Shaw Plaza and Zhongshan Mall. Toa Payoh town centre is also a short drive away.
Hong Wen School and Pei Chun Public School are within a 1km radius. Schools within a 2km radius include CHIJ Primary (Toa Payoh) and Marymount Convent School.
The site faces the busy Pan-Island Expressway so future residents can expect traffic noise especially during the peak hours.
The average price for four-room resale HDB flats in Kallang/Whampoa has grown by 25% since 2013 to the current price of $723 psf. In contrast, the average price for two-room flats in the same town fell by 4% to $516 psf, while the average price for three-room flats inched up by 1% to $537 psf.
Kallang Horizon was the sole project launched in Kallang/Whampoa during the previous BTO exercise in November. Three-room flats in Kallang Horizon were available for application at prices ranging from $335,000 to $447,000, while four-room flats were offered at prices ranging from $509,000 to $690,000.
Like Kallang Horizon, the site at Farrer Park Road is expected to be launched as a PLH project and hence is likely to have similar launch prices. The site at Jalan Rajah is likely to be launched at lower prices because it is not expected to be a PLH project.
Unsuccessful applicants for the two upcoming projects in Kallang/Whampoa should try again in the next round of BTO exercise in May when there will be three-room and four-room BTO flats in the same town available for application.
Alternatively, buyers can consider resale flats in Kallang/Whampoa that have reached their minimum occupation period (MOP) last year. Smaller families or singles can consider one of the 327 three-room flats in Bendemeer Light. Larger families can take a look at the 888 four-room flats in Bendemeer Light along Bendemeer Road or the 249 four-room flats in Whampoa Dew along Lorong Limau.
The overall application rate for three-room and four-room flats in Kallang Horizon was 7.6 and 11.3, respectively. Based on the popularity of Kallang Horizon, the upcoming BTO projects in Kallang/Whampoa are expected to be in demand. However, large families might want to avoid both projects because of the lack of larger flats.
The project along Farrer Park Road is expected to see more demand because of its central location and close proximity to an MRT station. The excellent locational attributes of the site mean that the project is widely expected to be a PLH, which comes with a number of drawbacks including higher launch prices and a longer MOP.
However, the Farrer Park Road project has 1,270 flats available for application, more than double the 500 available flats from the Jalan Rajah project.
On the other hand, sporty families might prefer the Jalan Rajah project because of the array of sports facilities within walking distance. The project might also appeal to buyers looking for a home in a central location albeit at more affordable prices.
The upcoming Queenstown BTO project is located next to Ulu Pandan Banks, a project that was launched in the previous BTO exercise in November. The upcoming project will have 730 flats, which is approximately half the number of flats in Ulu Pandan Banks.
As neighbouring Ulu Pandan Banks was launched as a PLH project, the upcoming Queenstown BTO project is almost certain to be a PLH project too. Additionally, Ulu Pandan Banks had the highest launch prices compared to the other PLH projects that were launched at the same time. As such, interested buyers of the upcoming Queenstown BTO project will have to set aside a bigger housing budget.
Despite the higher price, buyers might find the upcoming project attractive because it offers connectivity and convenience to future residents. The site is located within walking distance of Dover MRT Station. Future residents will be within a stone's throw of numerous reputable schools across all educational levels.
Since 2013, the average price for four-room resale HDB flats in Queenstown grew 22% to the current $866 psf. On the flip side, average price for three-room flats in the same town dipped 1% to $588 psf over the same period.
Ulu Pandan Banks and the upcoming BTO project are located beside each other, and both projects are launched only a few months apart. As such, the launch prices in the upcoming Queenstown BTO project are expected to mirror those of Ulu Pandan Banks. Three-room and four-room flats in Ulu Pandan Banks were launched at $362,000 to $504,000 and $546,000 to $725,000, respectively.
Unsuccessful applicants can try their luck in the next BTO exercise in May when HDB will launch more three-room and four-room flats in Queenstown. They can also consider Ghim Moh Edge along Ghim Moh Link, which is a close neighbour of the upcoming BTO project. The 2,368 three-room and 5,288 four-room flats in Ghim Moh Edge obtained MOP last year.
During the BTO exercise last November, three-room flats in Queenstown attracted an overall application rate of only 0.9. Four-room flats fared better with an overall application rate of 2.3. The lower application rates could be because three Queenstown BTO projects were launched in the same BTO exercise thus giving applicants more choices.
In contrast, the BTO exercise in May last year had only one project in Queenstown. Ghim Moh Ascent attracted higher overall application rates of 1.5 for three-room flats and 4.4 for four-room flats. No flats were launched in Queenstown during the recent BTO exercise in August.
Despite the lower application rates for flats in Queenstown during the most recent BTO exercise, the upcoming BTO project in the same town is still worth considering. The numerous nearby schools should appeal to parents, and those who work in one-north will appreciate being only one MRT stop away.
Buyers who are keen to live in Jurong West should definitely seize the opportunity to submit their applications in the upcoming BTO exercise.
The most recent BTO project in Jurong West is Lakeside View, which was launched in May last year. Lakeside View had 101 three-room and 246 four-room flats that attracted overall application rates of 4.4 and 7.4, respectively. The 214 five-room flats achieved an overall application rate of 15.4. However, the next BTO exercise in May this year will not include Jurong West.
Pioneer MRT Station is within walking distance of the upcoming Jurong West BTO project, making Jurong Lake District (JLD) only a short MRT ride away. However, the long commute for those working in the CBD might deter some from applying.
Connectivity is expected to improve when the Jurong Region Line (JRL) becomes fully operational in 2029. The existing Boon Lay MRT Station, which is only one stop away from Pioneer MRT Station, will serve as an interchange station when Stage 1 of JRL is up and running in 2027.
There are many nearby leisure facilities, including a park, Jurong West Stadium, and Sports Centre. Four primary schools are within a 1km radius. On the flip side, there are a number of worker dormitories nearby, which might be considered a drawback by some potential buyers.
Interested applicants should also take note that this upcoming BTO project has the least number of available flats, which could affect their chances of a successful application.
Since 2013, the average price for three-room resale HDB flats in Jurong West has grown by 10% to the current $497 psf. A stronger price growth was observed for four-room flats, which increased by 16% to $480 psf over the same time period.
Prices for HDB flats in Jurong West are expected to appreciate further on the back of improved public transport infrastructure. Our survey on connectivity and convenience, conducted last year, indicated that 62% of the respondents were willing to pay at least 10% more for homes with easy access to public transport.
Unsuccessful applicants can consider three projects in Jurong West that will obtain MOP this year. Yung Ho Spring I and II along Corporation Drive have 1,150 three-room flats and 1,330 four-room flats while Spring Haven @ Jurong along Jurong West Street 42 has 150 three-room and 238 four-room flats.
Tengah has been the talk of the town since the announcement that Anglo-Chinese School (Primary) will move to the new town by 2030.
Tengah is the only project with five-room flats in this month’s BTO exercise. It also has the most number of flats and the largest variety of flat types. Tengah is expected to have the most affordable flats because it is a new and undeveloped town.
There is no existing MRT station within walking distance of the Tengah BTO project. Stage 2 of JRL will serve the areas between Tengah and Pandan Reservoir, but it is expected to be completed only in 2028.
There were two projects in Tengah during the BTO exercise last November, and all flat types were oversubscribed.
Garden Waterfront I and II @ Tengah had 578 two-room flexi flats that were available for $111,000 to $174,000. The 89 three-room and 740 four-room flats were launched at $214,000 to $262,000 and $307,000 to $397,000, respectively. The projects had 670 five-room flats with launch prices of $428,000 to $536,000. Interested applicants can expect the flats in the upcoming Tengah BTO project to be similarly priced.
The flats in Tengah offered in this round of the BTO exercise could potentially be located within a 1km or 2km radius of the relocated ACS (Primary). However, before parents rush to submit their BTO application, they should bear in mind that the school will only operate from its new location in 2030. Furthermore, the relocated school will start with the primary one cohort only, and students in ACS (Barker) will complete their primary school education at the old campus.
As such, parents with young children may find that their children will be too old for primary one in 2030. The BTO flats may be more suitable for newlywed couples who plan to start their family after they move into their new home.
There are not many existing amenities within walking distance of the site, but more amenities are expected to be built in tandem with the development of the new town. In the meantime, pioneer residents will have to put up with some inconvenience and construction noise.
Unsuccessful applicants can try submitting their application again. The next BTO exercise in May will have two-room to five-room flats in Tengah.
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