August BTO exercise sees strong demand for larger Ang Mo Kio and Tampines flats
Both projects launched under the prime location public housing (PLH) version– Havelock Hillside and Alexandra Vale, both situated in Bukit Merah– saw application rates of 2.7 for three-room flats as well as 6.1 for four-room units. An overall of 8,883 applications were obtained for the 1,651 PLH units launched.
Large flats in mature estates saw the greatest applying rates. 4- and also five-room apartments at Sun Plaza Spring in Tampines saw application rates of 22.3 and also 26.3 for the 150 and 177 offered apartments, each. For Central Weave@AMK in Ang Mo Kio, the 398 four-room apartments registered a 12.6 application rate, while five-room and Three-Generation (3Gen) flats amounting to 372 units got a 17.5 application rate.
Among the flats in non-mature estates launched, the property in Woodlands saw the highest possible application prices at 6.6 for two-room Flexi flats, 8.1 for three-room flats, and 11.7 for four-room houses. On the other hand, flats at the projects launched in Choa Chu Kang saw application rates in between 2.0 to 2.6, while the project in Jurong East saw application rates in between 4.1 to 6.7.
Sun believes the higher amount of consumers might reflect a lot more buyers relying on the BTO market, given that BTO units are currently extra cost effective contrasted to climbing costs of resale flats and also exclusive residences. “There have actually not been several new exclusive house open in recent months. Consequently, purchasers currently have lesser real estate options, especially for cash-strapped customers,” she includes.
Sun associates the appeal of the projects in mature estates to the ample facilities and proximity to MRT terminals. “The Tampines property likewise has among the shortest completion periods, around 36 months,” she adds.
While PLH units were oversubscribed, Sun says the application rate was lower than in previous PLH debut. “Perhaps the pool of customers has actually diminished since several PLH version flats have actually been released over the past year, and also some consumers may have already purchased a unit in the earlier BTO exercises,” she believes.
The August 2022 BTO exercise closed on Sept 5, with 39,136 applications for the 4,993 units introduced available. This has to do with 30% more than the about 27,000 applications obtained throughout the May BTO exercise when 4,583 units were introduced, indicates Christine Sun, senior vice president of research and analytics at OrangeTee & Tie.
She includes that the 10-year minimum occupation duration for PLH apartments and also a lot more stringent selling requirements may have hindered customers. PLH condo owners go through a clawback aid of 6% when they market their homes for the very first time.
