June 2024 BTO: Final BTO exercise before reclassification of HDBs
By Elizabeth Choong
/ EdgeProp Singapore |
The BTO project near Holland Village is expected to attract many applicants. (Photo: Samuel Isaac Chua/EdgeProp Singapore)
SINGAPORE (EDGEPROP) – The upcoming Build-To-Order (BTO) exercise in June will be the final round before the reclassification of BTO flats into Prime, Plus, and Standard takes effect. The BTO exercise in June offers a bumper crop of 6,830 flats, which is a significant increase from the 4,126 new flats featured in the previous BTO exercise in February. Both BTO exercises feature seven projects spread across six towns.
For the upcoming BTO exercise, the project in Queenstown is expected to attract the most number of applicants because of its location near Holland Village. The two projects in Kallang/Whampoa are also expected to attract a number of applicants due to their central location. The remaining four projects are in Woodlands, Yishun, Jurong East, and Tampines.
BTO#1 Queenstown: Potential PLH near Holland Village
The probability of the Queenstown BTO project being launched under the Prime Location Public Housing (PLH) model is high because of its close proximity to Holland Village, One Holland Village, and Holland Village MRT Station. This means that a longer minimum occupation period (MOP) of 10 years will be applicable for buyers, and a subsidy recovery is applicable for the first buyer. However, the stricter conditions are not expected to deter applicants, and the project is expected to be oversubscribed.
Queenstown BTO project: Expect intense competition for 330 flats
The main attraction of this project is its excellent location attributes. Future residents are a short walk away from numerous charming cafes and lifestyle shops in Holland Village, as well as Holland Village MRT Station. The newly opened One Holland Village adds more amenities to the area. However, the vibrant and busy neighbourhood might deter some applicants who prefer more privacy and a quieter living environment.
Parents might be deterred by the lack of schools within a 1km radius. However, there are several reputable schools within a 2km radius, namely Henry Park Primary School, Nanyang Primary School, Fairfield Methodist School (Primary and Secondary), Anglo-Chinese (Independent) (Secondary and Junior College), and Anglo-Chinese Junior College.
The project has the fewest number of flats among all the projects in this BTO exercise. As such, the possibility of a successful application is not high, especially if the applicant is not a first-time buyer. Furthermore, this well-located project is expected to attract much demand. The project also offers the least variety of flat types, with four-room flats being the largest. Therefore, large households may want to consider other BTO projects for more spacious flats.
Unsuccessful applicants can consider Ghim Moh Edge, located along Ghim Moh Link. The project is expected to appeal to prospective buyers who work in one-north because the business park is a short drive away. Ghim Moh Edge features three-room and four-room flats. The project reached its MOP in 2022. No BTO projects in Queenstown achieved MOP last year, nor will any achieve MOP this year.
Overwhelming demand for previous Queenstown BTO project
The latest BTO project in Queenstown was launched in February. Tanglin Halt Courtyard received high subscription rates for its different flat types, which could be attributed to the project’s proximity to Commonwealth MRT Station and New Town Primary School. The project was launched under the PLH model.
However, demand for the upcoming Queenstown BTO project is expected to be stronger due to its location near Holland Village. As such, prices for the upcoming BTO project is expected to be higher than Tanglin Halt Courtyard.
HDB resale prices for Queenstown
The average price for four-room flats ($872 psf) in Queenstown has consistently trended above their two-room counterparts ($739 psf). However, the price growth for four-room flats has been significantly weaker compared to two-room flats. Since 2014, the average price for four-room flats in Queenstown has grown by 26.4%, which is considerably weaker than the growth of 40% observed for two-room flats.
Source: EdgeProp Market Trends (as at 7 May 2024)
BTO#2 Kallang/Whampoa: Many available flats in a central location
For the upcoming BTO exercise, there are two projects in Kallang/Whampoa that are located next to each other. Both projects offer a total of 2,020 flats, ranging from two-room flexi to four-room flats. The numerous available flats could mean a higher chance of success for applicants. However, the lack of five-room flats might deter larger families from applying.
Kallang/Whampoa BTO: Unlikely to be PLH
The projects are located approximately equidistant from Tanjong Rhu and Katong Park MRT Stations, which are expected to open in June. The nearest operational MRT station is Stadium MRT Station, which is located across the Geylang River.
However, all three stations are not within walking distance of both projects. Therefore, the projects might not be launched under the PLH model despite their central location. Hence, it could be an opportunity for applicants to snap up a BTO flat in a central location without the stricter restrictions of a PLH flat.
Future residents of both projects in Kallang/Whampoa are likely to have unblocked water views because the projects face the Geylang River and are near the Marina Reservoir. Both projects are also located within a 1km radius of the Singapore Sports Hub, which should increase their appeal to sporty prospective applicants. Furthermore, HDB has indicated that there will be more facilities, such as restaurants and a supermarket, in the projects.
There are no primary schools within a 1km radius of both projects, which might deter parents from applying. Furthermore, there is only one primary school within a 2km radius, namely Kong Hwa School. However, HDB has indicated that there will be a preschool within each project.
Unfortunately for unsuccessful applicants, there are no BTO flats in Kallang/Whampoa that reached MOP last year or will reach MOP this year. Only Whampoa Dew along Lorong Limau achieved MOP in 2022. The project features two-room and four-room flats. However, Whampoa Dew is unlikely to appeal to unsuccessful applicants in this BTO exercise because it is not located near the two upcoming projects. Nonetheless, Whampoa Dew is within walking distance of Hong Wen School and Whampoa Drive Makan Place. Rajah Residences, which was available for application last year, is also a short walk away.
Previous Kallang/Whampoa BTO projects were oversubscribed
The most recent BTO projects in Kallang/Whampoa were launched in October last year. Verandah @ Kallang was launched as a PLH project, but not Rajah Residences and Tenteram Vantage. Hence, prospective applicants for the upcoming Kallang/Whampoa BTO project could use the prices of Rajah Residences and Tenteram Vantage as a guide.
HDB resale prices for Kallang/Whampoa
Since 2015, the average price for four-room HDB flats in Kallang/Whampoa has been higher than that of its two-room and three-room counterparts. This year, the average price for four-room flats is significantly higher at $852 psf compared to two-room ($640 psf) and three-room ($606 psf) flats in the same town. The lower average price for three-room flats could be because there are more of such flats in the town. According to the latest HDB annual report, there are 14,146 three-room flats in Kallang/Whampoa, which constitutes about 41.9% of the HDB flats in the town.
In addition to having the highest average price, four-room flats in Kallang/Whampoa also enjoy the strongest price growth of 57.2% since 2014. Prices for two-room and three-room flats increased by 15.5% and 21%, respectively.
Source: EdgeProp Market Trends (as at 7 May 2024)
Which Kallang/Whampoa BTO project to choose?
There is very little difference in location between both projects because they are located next to each other. The project with more flats is likely to appeal to those who value convenience because more facilities are expected to be built within the larger project. However, the smaller project might be more appealing to those who value their privacy because they will have fewer neighbours.
BTO#3 Woodlands: Largest variety of flats
The BTO project in Woodlands is not only a massive project with 1,590 flats, but it also has the widest variety of flats ranging from two-room flexi to 3Gen. It is also the only project in this BTO exercise with 3Gen flats, which is expected to appeal to large households. The larger five-room and 3Gen flats account for 24.5% of the available flats in this project. Furthermore, the large number of flats could mean a higher chance of success for applicants.
More homes are expected to be built in Woodlands. It was recently announced that a land parcel along Woodlands Drive 17 was designated for residential use. The site is located near the Singapore Sports School and Woodlands South MRT Station.
Woodlands BTO project: Limited nearby amenities
The project is located a short distance away from the Causeway, which will make the flats ideal for applicants who visit Johor Bahru frequently. Additionally, the flats overlook the Straits of Johor, so future residents can expect excellent sea views. They could also enjoy views of the nearby Admiralty Park.
The main drawback of the project will be the limited nearby amenities. Other than the Marsiling Lane Market and Hawker Centre, there are few amenities within walking distance. Marsiling MRT Station is the nearest MRT station, but it is more than 1km away. There are also no primary schools within a 1km radius, but there are four primary schools within a 2km radius, namely Fuchun Primary School, Marsiling Primary School, Qihua Primary School, and Si Ling Primary School. HDB has indicated that some amenities will be built within the project.
Unsuccessful applicants can consider Marsiling Greenview, located along Woodlands Street 13. The project achieved MOP last year and features two-room to five-room flats. Marsiling Greenview might appeal to more buyers because it is located within walking distance of Marsiling MRT Station, Marsiling Mall Hawker Centre, Marsiling Primary School, and Woodlands Stadium.
Robust demand for larger flats in Woodgrove Edge
The most recent BTO project in Woodlands is Woodlands Edge, which was launched for application in February. Woodlands Edge is located near Si Ling Primary School, Innova Primary School, Singapore Sports School, and the Seletar Expressway.
HDB resale prices for Woodlands
The average resale price for three-room flats ($542 psf) in Woodlands has consistently been higher than that for four-room ($505 psf) and five-room ($496 psf) flats in the same town. However, it is noteworthy that the price gap between the three flat types has been less than $60 psf since 2014. Furthermore, the price growth for all three flat types has been comparable, with five-room flats having the highest growth rate of 42.9% since 2014, followed by four-room (38%) and three-room (35.5%) flats.
Source: EdgeProp Market Trends (as at 7 May 2024)
BTO#4 Yishun: Another project in the North
More than 1,000 flats will be available in Yishun during the upcoming BTO exercise. This should help ease some of the demand for new flats in the town because no BTO flats have been made available for application in Yishun since last year. Furthermore, there is a wide variety of flats available, ranging from two-room flexi to five-room flats. Larger families will be pleased to know that there are 390 five-room flats in the upcoming project.
Yishun BTO project: Ideal for those who value a tranquil environment
The Yishun BTO project is expected to appeal to applicants who are sporty or nature lovers because of the project’s close proximity to Lower Seletar Reservoir Park, Sembawang Country Club, and Nee Soon Farmland. Furthermore, there are many schools within a 1km radius, including Peiying Primary School and Naval Base Secondary School.
Khatib MRT Station is the nearest MRT station, but it is almost 1 km away. Furthermore, there are limited amenities within walking distance, but the provision of some shops within the project might help mitigate the scarcity.
Valley Spring @ Yishun will obtain MOP this year
Valley Spring @ Yishun, located along Yishun Street 42, will obtain its MOP later this year. However, the project only features two-room to four-room flats, which are less ideal for large families. Similar to the upcoming BTO project in Yishun, Valley Spring @ Yishun does not have an MRT station within walking distance. Yishun MRT Station, which is the nearest station, is approximately 1.7 km away. However, North View Primary School is a short walk away.
HDB resale prices for Yishun
It is noteworthy that the average prices for three-room, four-room and five-room flats in Yishun have increased at a similar pace. Since 2014, the average price for five-room flats in Yishun has risen by 42.5%, followed by four-room (38.4%) and three-room flats (34%). Despite having the weakest growth rate, three-room flats have the highest current average price of $556 psf, followed by four-room ($522 psf) and five-room flats ($516 psf).
Source: EdgeProp Market Trends (as at 7 May 2024)
Which Northern town to call home?
The Woodlands BTO project will be ideal for those who travel to Johor Bahru regularly because of its close proximity to the Causeway. Large families will also appreciate the availability of 3Gen flats for application. However, the lack of a primary school within a 1km radius might be a deterrent for some parents.
In contrast, the Yishun BTO project has a primary school within a 1km radius, but it does not offer 3Gen flats. Furthermore, there are fewer nearby amenities, such as markets and food centres, compared to the Woodlands project.
BTO#5 Jurong East: Singapore’s secondary CBD
The Jurong East BTO project is located within the Jurong Lake District (JLD), which is poised to be Singapore’s secondary CBD. Furthermore, the upcoming BTO project is situated near the International Business Park and is across the road from a future MRT station on the Jurong Region Line (JRL). It presents an opportunity for homebuyers to capitalize on the spillover benefits and potential capital gains associated with the development of JLD.
Furthermore, there is a scarcity of HDB flats in Jurong East. According to the most recent HDB annual report, there are only 23,468 HDB flats in Jurong East, which represents only 2.2% of the total number of HDB flats in Singapore.
Moreover, there have not been any BTO projects in Jurong East since last year. Additionally, there have been no BTO projects in the town that achieved MOP last year or will achieve MOP this year. As such, the pent-up demand for new flats in the town can be expected to boost subscription rates for the Jurong East BTO project.
Jurong East BTO project: Lots of potential
There is no operational MRT station near the Jurong East BTO project at the time of writing. However, there is a future MRT station on the Jurong Region Line (JRL) located across the road from the project. The station is expected to be operational in 2027, which is approximately the same time when the BTO project is expected to be completed. Furthermore, the future MRT station is only one stop away from the existing Boon Lay MRT Station, which will serve as an interchange station for JRL and East-West Line.
The project is also located a short drive away from the Ayer Rajah Expressway and the International Business Park. The proximity to the business park might appeal to prospective buyers who work there.
Parents might be deterred by the lack of primary schools within a 1km radius, although there are three primary schools within a 2km radius, namely Fuhua Primary School, Nan Hua Primary School, and Qifa Primary School. Additionally, a preschool is expected to be built within the project. Aside from Teban Gardens Market and Food Centre, there are limited amenities in the vicinity.
HDB resale prices for Jurong East
The average prices for four-room ($494 psf) and five-room ($464 psf) flats in Jurong East are still under $500 psf, while the average price for three-room flats is marginally higher at $503 psf. The average price for three-room flats in Jurong East is not only the highest but also growing at the fastest pace of 23.3% since 2014. The average prices for four-room and five-room flats increased by 21.1% and 12.6%, respectively.
Source: EdgeProp Market Trends (as at 8 May 2024)
BTO#6 Tampines: Located near two GLS sites
The Tampines BTO project is a short walk away from two sites under the government land sales (GLS) list for 1H2024. The GLS site along Tampines Street 94 is designated for commercial and residential uses and is expected to yield approximately 585 housing units and 10,500 sq m (113,022 sq ft) of commercial space. The tender for the site will be launched in June. The future development on the GLS site can be expected to be completed approximately the same time as the BTO project. Future residents of the BTO project will be able to benefit from the shops in the future development on the GLS site.
The second GLS site is located along Tampines Street 95, and an estimated 560 executive condo units can be built on the site. The second GLS site is on the reserve list, so it will not be launched for tender unless it is triggered.
As the future developments of both GLS sites and the BTO project will target buyers with different budgets, the three housing developments are unlikely to compete for buyers.
Tampines BTO project: Proximity to a variety of amenities boost demand
The Tampines BTO project is a short walk from Tampines West MRT Station and SAFRA Clubhouse (Tampines). The MRT station is only one stop away from Tampines MRT Station, where there are numerous malls including Tampines Mall and Century Square.
Parents will be pleased to know that a preschool is planned for the project, in addition to three primary schools located within a 1km radius of the BTO project. The primary schools are Junyuan Primary School, St. Hilda’s Primary School, and Tampines Primary School.
There are only 550 available flats, so competition is expected to be intense due to the project’s proximity to amenities and Tampines’ popularity as a housing estate. Furthermore, there have been no BTO projects in Tampines since last year.
HDB resale prices for Tampines
There were no resale transactions for two-room flats in Tampines until 2016. Since then, the average price for such flats has surged by 33.3% to $717 psf. The average price for two-room flats has consistently trended above that of four-room and five-room flats, which could be attributed to the scarcity of two-room flats in Tampines. According to the latest HDB annual report, there are only 764 two-room flats in Tampines. In contrast, there are 34,188 four-room flats and 20,562 five-room flats.
However, the strongest price growth was observed for four-room flats. Since 2016, the average price for four-room flats surged by 50.3% to $601 psf, followed by five-room flats whose average price increased by 36.1% to $566 psf.
Source: EdgeProp Market Trends (as at 8 May 2024)
Follow Us
Follow our channels to receive property news updates 24/7 round the clock.
EdgeProp Telegram
EdgeProp FacebookSubscribe to our newsletter
Top Articles
Search Articles