August BTO exercise sees strong demand for larger Ang Mo Kio and Tampines flats
/ EdgeProp Singapore |
Artist's impression of Sun Plaza Spring, the project in Tampines launched under the August BTO exercise (Picture:HDB)
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SINGAPORE (EDGEPROP) - The August 2022 BTO exercise closed on Sept 5, with 39,136 applications for the 4,993 units launched for sale. This is about 30% more than the roughly 27,000 applications received during the May BTO exercise when 4,583 units were launched, notes Christine Sun, senior vice president of research and analytics at OrangeTee & Tie.
Sun believes the higher number of applicants may reflect more buyers turning to the BTO market, given that BTO units are currently more affordable compared to rising prices of resale flats and private homes. “There have not been many new private home launches in recent months. Therefore, buyers now have fewer housing options, especially for cash-strapped buyers,” she adds.
Large flats in mature estates saw the highest application rates. Four- and five-room apartments at Sun Plaza Spring in Tampines saw application rates of 22.3 and 26.3 for the 150 and 177 available flats, respectively. For Central Weave@AMK in Ang Mo Kio, the 398 four-room flats registered a 12.6 application rate, while five-room and Three-Generation (3Gen) flats totalling 372 units received a 17.5 application rate.
Sun attributes the popularity of the projects in mature estates to the ample amenities and proximity to MRT stations. “The Tampines project also has one of the shortest completion periods, around 36 months,” she adds.
The two projects launched under the prime location public housing (PLH) model – Havelock Hillside and Alexandra Vale, both located in Bukit Merah – saw application rates of 2.7 for three-room flats and 6.1 for four-room apartments. A total of 8,883 applications were received for the 1,651 PLH units launched.
While PLH units were oversubscribed, Sun says the application rate was lower than in previous PLH launches. “Perhaps the pool of buyers has shrunk since many PLH model flats have been released over the past year, and some people may have already bought a unit in the earlier BTO exercises,” she opines.
She adds that the 10-year minimum occupation period for PLH flats and more stringent selling criteria may have deterred buyers. PLH flat owners are subject to a clawback subsidy of 6% when they sell their homes for the first time.
Among the flats in non-mature estates launched, the project in Woodlands saw the highest application rates at 6.6 for two-room Flexi flats, 8.1 for three-room flats, and 11.7 for four-room apartments. Meanwhile, flats at the projects launched in Choa Chu Kang saw application rates between 2.0 to 2.6, while the project in Jurong East saw application rates between 4.1 to 6.7.
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