August BTO exercise sees strong demand for larger Ang Mo Kio and Tampines flats
The two deals introduced under the prime area public housing (PLH) version– Havelock Hillside as well as Alexandra Vale, both situated in Bukit Merah– saw application rates of 2.7 for three-room flats and also 6.1 for four-room apartments. An overall of 8,883 applications were received for the 1,651 PLH units launched.
Large apartments in developed estates saw the greatest application rates. Four- and also five-room condos at Sun Plaza Spring in Tampines saw application rates of 22.3 and also 26.3 for the 150 as well as 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 as well as Three-Generation (3Gen) apartments completing 372 units gained a 17.5 application rate.
While PLH units were oversubscribed, Sun claims the application rate was lower than in previous PLH debut. “Possibly the pool of buyers has actually diminished because several PLH model flats have actually been launched over the past year, and also some consumers might have currently bought a unit in the earlier BTO exercises,” she opines.
The August 2022 BTO exercise closed on Sept 5, with 39,136 applications for the 4,993 units launched available. This is about 30% more than the about 27,000 applications earned throughout the May BTO exercise when 4,583 units were launched, indicates Christine Sun, top vice head of research and analytics at OrangeTee & Tie.
Sun believes the better amount of applicants might mirror much more buyers resorting to the BTO market, given that BTO units are presently more economical compared to climbing costs of resale condos and also exclusive houses. “There have actually not been several brand-new exclusive home release in current months. Therefore, purchasers currently have less housing alternatives, especially for cash-strapped purchasers,” she includes.
Sun associates the popularity of the projects in mature estates to the enough services and also distance to MRT terminals. “The Tampines project additionally has one of the shortest finalization periods, around 36 months,” she includes.
She adds that the 10-year minimum rental duration for PLH apartments as well as extra strict selling standards may have hindered buyers. PLH condo proprietors go through a clawback subsidy of 6% when they sell their homes for the very first time.
Among the condos in non-mature estates introduced, the project in Woodlands saw the highest possible application prices at 6.6 for two-room Flexi flats, 8.1 for three-room apartments, and 11.7 for four-room houses. 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.
