August BTO exercise sees strong demand for larger Ang Mo Kio and Tampines flats
Among the flats in non-mature estates launched, the property in Woodlands saw the highest application prices at 6.6 for two-room Flexi flats, 8.1 for three-room flats, as well as 11.7 for four-room homes. At the same time, apartments at the projects released 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.
Huge rooms in mature estates saw the greatest application rates. 4- as well as five-room flats at Sun Plaza Spring in Tampines saw application rates of 22.3 as well as 26.3 for the 150 and also 177 available condos, 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) condos totalling 372 units received a 17.5 application rate.
The August 2022 BTO activity closed on Sept 5, with 39,136 applications for the 4,993 units introduced available. This is about 30% more than the about 27,000 applications collected throughout the May BTO exercise when 4,583 units were introduced, notes Christine Sun, senior vice head of research and analytics at OrangeTee & Tie.
Sun thinks the higher amount of clients might reflect extra customers looking to the BTO market, given that BTO units are currently much more budget friendly contrasted to climbing costs of resale flats as well as personal homes. “There have not been lots of brand-new exclusive house release in recent months. Consequently, buyers currently have much less real estate choices, specifically for cash-strapped buyers,” she includes.
Sun connects the appeal of the properties in mature estates to the ample features and closeness to MRT stations. “The Tampines property also has one of the shortest finalization durations, around 36 months,” she includes.
While PLH units were oversubscribed, Sun claims the application rate was less than in previous PLH kick off. “Probably the pool of purchasers has reduced considering that lots of PLH version apartments have actually been launched over the past year, and some consumers may have already purchased a unit in the earlier BTO exercises,” she says.
The two projects introduced under the prime place public housing (PLH) model– Havelock Hillside and also Alexandra Vale, both located in Bukit Merah– saw application rates of 2.7 for three-room apartments as well as 6.1 for four-room houses. An overall of 8,883 applications were received for the 1,651 PLH units released.
She adds that the 10-year minimum occupation duration for PLH apartments and also extra rigorous selling criteria might have discouraged investors. PLH flat proprietors go through a clawback aid of 6% when they market their houses for the very first time.