The October 2024 BTO will introduce Plus flats and Open-Concept layouts
By Elizabeth Choong
/ EdgeProp Singapore |
The two BTO projects near Bayshore MRT Station are expected to be oversubscribed. (Photo: Samuel Isaac Chua/EdgeProp Singapore)
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SINGAPORE (EDGEPROP) – A number of firsts will be introduced in the upcoming Build-To-Order (BTO) exercise in October. Hence, applicants’ reactions will be keenly watched by market observers. Furthermore, a bumper crop of 8,540 flats from 15 projects, spread across nine towns, will be available for application in this round of the BTO exercise. This is an increase from the 6,938 flats from seven projects, spread across six towns, available during the most recent BTO exercise in June.
The upcoming BTO exercise will be the first time that flats are categorized as Prime, Plus, or Standard. BTO flats in the Prime category are located in close proximity to the city centre or major town centres. As such, residents of Prime flats will enjoy the convenience of living near many amenities and the CBD. Plus flats are located in more desirable locations within each region and are well-connected to the city centre. These flats will also have numerous amenities and may include unique features, such as waterfront living. The remaining flats will be categorized as Standard.
Prime and Plus flats will be priced higher, but purchasers will receive greater government subsidies. Additionally, owners of Prime and Plus flats will be subjected to subsidy recovery, unlike owners of Standard flats. Owners of Prime and Plus flats will also face stricter conditions, such as a Minimum Occupation Period (MOP) of 10 years, instead of the usual five years.
With effect from August, the Loan-to-Value (LTV) ratio for all housing loans from HDB has been reduced from 80% to 75%. The LTV for housing loans from banks remains at 75%. The upcoming BTO exercise in October will be the first where applicants will be subject to the lower LTV for HDB loans. However, the lower LTV is not expected to affect higher-income households, as there is a household income ceiling of $14,000 per month for families applying for a loan from HDB. The income ceiling for singles is $7,000 per month. An Enhanced CPF Housing Grant (EHG) was also introduced in August, allowing first-time family applicants to receive up to $120,000 in EHG.
HDB will introduce Open-Concept Layout or White Flats for a project in Kallang/Whampoa during the upcoming BTO exercise. White Flats will not have internal walls, thus allowing owners to partition their flat according to their preferences. Applicants of flats in this project can opt for an open-concept layout when booking their flat. Those who do not opt for a White Flat will receive the usual layout with internal walls.
This article will focus on seven projects from the October BTO exercise. These seven projects are spread across three towns and are expected to be launched as Prime or Plus flats. The remaining eight projects will be featured in next week’s article.
Kallang/Whampoa are expected to attract strong demand
During the upcoming round of the BTO exercise, approximately 940 flats from three projects in Kallang/Whampoa are expected to be made available for application. These three projects are expected to be launched as Prime flats due to their central locations and close proximity to numerous amenities (see Table 1). Prime flats will have tighter restrictions, such as a longer MOP, which could make the flats in Kallang/Whampoa less attractive to prospective buyers who plan to move before the 10-year MOP is fulfilled.
BTO#1: Kallang/Whampoa (North Bridge Road)
The Kallang/Whampoa project located along North Bridge Road is the inaugural project for the Open-Concept layout, also known as White Flats. These flats should appeal to homebuyers who want to personalize their home layout to suit their needs. However, only 310 flats are available, so applicants who are not first-timers are unlikely to have a high chance of success.
The central location and close proximity to Lavender MRT Station and North Bridge Road Market add to the project's appeal (see Map 1). Furthermore, Lavender Station is only one stop from the dual-line Bugis MRT Station and three stops from the dual-line Raffles Place MRT Station. As such, future residents of the project will be able to travel anywhere on the island easily via the MRT network.
The main drawback of this project is the lack of a primary school within a 1km radius, but there are three primary schools within a 2km radius, namely Hong Wen School, Farrer Park Primary School, and Bendemeer Primary School. Moreover, a preschool is expected to be built within the project.
BTO#2: Kallang/Whampoa (May Road)
The Kallang/Whampoa project near May Road is the only Kallang/Whampoa project in the upcoming BTO exercise with two-room flats. These flats are expected to see strong demand because this BTO exercise marks the first time that singles above the age of 35 years can purchase a BTO flat in any location. Previously, singles could only buy two-room BTO flats in non-mature estates.
The project's close proximity to Hong Wen School might attract some families to apply for the four-room flats (see Map 2). However, the lack of five-room flats could make the project less appealing to larger households.
Prospective buyers should note that Boon Keng Station, the nearest MRT station, is over 500m away, or about a 15-minute walk. However, Boon Keng MRT Station is just two stops from the dual-line Little India Station and three stops from the triple-line Dhoby Ghaut Station.
BTO#3: Kallang/Whampoa (Upper Boon Keng Road)
Future residents of the third BTO project in Kallang/Whampoa will enjoy being a short walk from Geylang Bahru MRT Station (see Map 3). They will also benefit from being within a 1km radius of two markets and food centres.
Prospective buyers who are parents of young children may find the project less appealing because there is only one primary school within a 1km radius. However, a preschool is expected to be built within the project.
The project is also located near the Kallang-Paya Lebar Expressway and Pan Island Expressway, providing drivers with easy connectivity. However, the proximity to these two expressways could result in more traffic noise and dust for future residents.
Three-room and four-room flats of Tanjong Rhu Riverfront I and II were oversubscribed
The most recent BTO projects in Kallang/Whampoa were launched in June. Combined, Tanjong Rhu Riverfront I and II featured 2,063 flats, which were launched as Prime flats. The three-room and four-room flats from Tanjong Rhu I and II were oversubscribed (see Table 2) despite the lack of an MRT station within walking distance. Katong Park MRT Station is the nearest station, but it is more than 600m away.
Demand could be attributed to the projects' central locations and potential views of the Geylang River. Furthermore, both projects are located adjacent to Dunman High School and the Singapore Swimming Club (see Map 4).
Source: EdgeProp LandLens (as at 12 September 2024)
HDB resale prices in Kallang/Whampoa
The average resale price for four-room HDB flats ($836 psf) in Kallang/Whampoa is significantly higher than that of their two-room ($628 psf) and three-room counterparts ($645 psf) (see Chart 1). Since 2020, the average price for two-room flats (53.2%) has seen stronger price growth than three-room (49.7%) and four-room flats (51.2%) in the same town.
Source: EdgeProp Market Trends (as at 16 September 2024)
Kallang/Whampoa projects expected to see strong demand
The two-room flats in the project along May Road are expected to draw a higher subscription rate than the two-room flats from Tanjong Rhu Riverfront I and II because the October BTO exercise marks the first time that singles are allowed to apply for BTO flats outside of non-mature estates. The four-room flats may appeal to parents because of the project’s close proximity to Hong Wen School.
Likewise, the project along Upper Boon Keng Road is expected to appeal to families due to its proximity to two markets and food centres, as well as a primary school.
The project along North Bridge Road is expected to see strong demand as it is located near to an MRT station. Additionally, the White Flats layout is anticipated to attract homebuyers who do not want a cookie-cutter home.
Initiating the transformation of Bayshore
Bedok is the only other town in the upcoming BTO exercise that will feature three projects. Combined, the three projects will offer approximately 1,780 flats. Two of the projects share many locational attributes because they are located adjacent to each other.
All Bedok BTO flats are expected to be launched under the new Plus category because all three projects are within walking distance of an MRT station and numerous amenities. However, they are unlikely to be launched as Prime flats because the projects are not located within the central region. Potential buyers should note that Plus flats have tighter restrictions similar to those for Prime flats.
BTO#4 and #5: Bedok (Bayshore Road)
The two projects are located near each other along Bayshore Road, so they will be analysed together. Combined, both projects will feature approximately 1,440 flats.
Both projects are within walking distance of Bayshore MRT Station, which will bring convenience to future residents. They are also located a short walk from East Coast Park, which will be a boon to future residents who enjoy water views or sea sports.
The upcoming project with approximately 730 flats (see Map 5) features a wider variety of flats, ranging from two-room flexi to four-room flats. The other BTO project features 710 flats that are either two-room flexi or four-room (see Map 6).
Smaller households may prefer the larger project with 730 flats because a three-room flat is sufficient to meet their housing needs. Furthermore, future residents in the larger project, especially those on higher floors, may enjoy unblocked sea views. Residents of the smaller project with 710 flats may not be able to enjoy a sea view, as their view may be blocked by the larger BTO project, which is located in front of it.
The main drawback of both projects is the lack of a major mall in the vicinity. However, a supermarket, shops, eating houses, and preschools are planned for the projects, which could help mitigate the inconvenience.
BTO#6: Bedok (Jalan Kembangan)
The third BTO project in Bedok is located adjacent to Kembangan MRT Station, which is only two stops away from the dual-line Paya Lebar MRT Station (see Map 7). The project is also a short walk from Kembangan Plaza, and several amenities are expected to be built within the project.
Bedok North Woods reached MOP this year
Approximately 110 three-room and 247 four-room flats in Bedok North Woods, located along Bedok North Road, obtained MOP this year. The project is situated adjacent to Fengshan Primary School (see Map 8). Other amenities within walking distance include Red Swastika School, Yu Neng Primary School, Kaki Bukit 511 Market and Food Centre, and Heartbeat @ Bedok. However, Bedok MRT Station, the nearest station, is more than 700m away.
Source: EdgeProp LandLens (as at 11 September 2024)
The wide variety of amenities makes Bedok North Woods an excellent alternative for unsuccessful applicants of the three Bedok BTO projects, especially if they are parents of young children. Furthermore, buyers of Bedok North Woods will be subject to an MOP of five years, compared to the 10 years imposed on Prime and Plus flats.
All flat types from previous Bedok BTO projects were oversubscribed
The most recent BTO projects in Bedok were launched for application in February. All flat types in Bedok North Springs and Bedok South Bloom were oversubscribed, with five-room flats from Bedok North Springs being the most popular (see Table 4). Combined, both projects featured 961 flats. They were not launched as Prime or Plus flats.
Bedok South Bloom and Bedok North Springs are located approximately 1.5 km apart. Bedok South Bloom is situated adjacent to Bedok Green Primary School and across the road from Bedok Stadium and Sports Hall (see Map 9). Other nearby amenities include New Upper Changi Road Market and Hawker Centre. The main drawback of this project is the lack of an MRT station within walking distance. Tanah Merah MRT Station is the nearest station, but it is more than 800m away.
Source: EdgeProp LandLens (as at 11 September 2024)
Bedok North Springs is also located adjacent to a school, namely Yu Neng Primary School (see Map 10). Other amenities within walking distance include Red Swastika School, Bedok Green Secondary School, Bedok Reservoir MRT Station, Bedok Reservoir Park, and Kaki Bukit 511 Market and Food Centre.
Source: EdgeProp LandLens (as at 11 September 2024)
HDB resale prices in Bedok
The average resale price for two-room ($630 psf) flats in Bedok is trending higher than that of three-room ($551 psf) and four-room counterparts ($589 psf) (see Chart 2). However, the strongest price growth since 2020 was achieved by three-room flats (39.8%), followed by two-room (39.1%) and four-room flats (33.9%).
All three Bedok projects are expected to be oversubscribed
The two projects along Bayshore Road will be the first public housing projects in the Bayshore area. They are expected to be oversubscribed due to their close proximity to Bayshore MRT Station and East Coast Park. Furthermore, the minimum age of the flats within a 1km radius is 38 years, meaning that no new HDB flats have been built in the vicinity for almost 40 years. As a result, the chances of a successful application for non-first-timers are expected to be low.
The project near Kembangan MRT Station is expected to see lower demand than the other two Bedok projects because it is located in a less desirable area. Additionally, the project is situated some distance from East Coast Park, so future residents will not have any sea views. However, this could present an opportunity for applicants who want to live in the east and are seeking a higher chance of a successful application. However, the odds for success could be mitigated by the significantly fewer available flats.
Geylang is the only BTO project with Community Care Apartments
The project near Mattar MRT Station is the only project in Geylang in the upcoming BTO exercise. It is expected to be launched under the Plus category due to its close proximity to the MRT station and numerous amenities.
The Geylang BTO project is also the only one featuring Community Care Apartments, which are senior-friendly housing with care services for the elderly (see Table 5). These flats are a joint effort by the Ministry of National Development (MND), the Ministry of Health (MOH), and HDB.
BTO#7: Geylang
The appeal of the Geylang BTO project lies in its proximity to Mattar MRT Station and Canossa Catholic Primary School (see Map 11). Mattar Station is only one stop away from the dual-line MacPherson Station, which enhances the connectivity of the project. Additionally, the proximity to the primary school will make the project more attractive to parents of young children. Furthermore, a preschool is expected to be built within the project.
However, the project features limited flat types. Only four-room flats are available for applicants who are not senior citizens. As the project is expected to be launched under the Plus category, applicants should note the longer MOP of 10 years.
Nevertheless, this Geylang BTO project is expected to attract many applicants because there has not been a BTO project in the vicinity for almost 30 years. The minimum age of HDB flats within a 500m radius of Mattar MRT Station is 28 years, with the average age being 49 years.
A project in Geylang obtained MOP this year
Buyers who are keen to purchase a flat in Geylang but want a greater variety of flat types might want to consider MacPherson Spring along Circuit Road. A total of 105 studio apartments, 63 two-room, 204 three-room, and 378 four-room flats in the project have obtained MOP this year.
MacPherson Spring is located a short walk from the dual-line MacPherson MRT Station. Other amenities within a 1km radius include Canossa Catholic Primary School, Geylang Methodist School (Primary), Circuit Road Market & Food Centre, and Paya Lebar Quarter (see Map 12).
Source: EdgeProp LandLens (as at 11 September 2024)
HDB resale prices in Geylang
The average resale price for four-room flats in Geylang ($730 psf) has consistently trended between that of their counterparts in the Central Region ($814 psf) and islandwide ($609 psf) (see Chart 3). However, the average resale price for four-room flats in Geylang (39.3%) achieved the strongest growth since 2020, compared to those in the Central Region (31.9%) and islandwide (38.4%).
Source: EdgeProp Market Trends (as at 16 September 2024)
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