August BTO exercise sees strong demand for larger Ang Mo Kio and Tampines flats
The two deals launched under the prime place public housing (PLH) design– Havelock Hillside and also Alexandra Vale, both situated in Bukit Merah– saw application rates of 2.7 for three-room flats and also 6.1 for four-room units. An overall of 8,883 applications were obtained for the 1,651 PLH units launched.
Large flats in developed estates saw the greatest applying rates. Four- and also five-room flats at Sun Plaza Spring in Tampines saw application rates of 22.3 and also 26.3 for the 150 and 177 readily available condos, respectively. For Central Weave@AMK in Ang Mo Kio, the 398 four-room flats signed up a 12.6 application rate, while five-room and Three-Generation (3Gen) condos amounting to 372 units received a 17.5 application rate.
While PLH units were oversubscribed, Sun claims the application rate was lower than in previous PLH debut. “Perhaps the pool of purchasers has actually shrunk considering that several PLH design apartments have actually been introduced over the past year, and some people might have already acquired a unit in the earlier BTO exercises,” she believes.
Amongst the apartments in non-mature estates introduced, the project in Woodlands saw the greatest application rates at 6.6 for two-room Flexi apartments, 8.1 for three-room apartments, and also 11.7 for four-room apartment or condos. Meanwhile, 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.
The August 2022 BTO activity closed on Sept 5, with 39,136 applications for the 4,993 units launched available. This is about 30% greater than the roughly 27,000 applications collected throughout the May BTO exercise when 4,583 units were introduced, indicates Christine Sun, top vice head of research and analytics at OrangeTee & Tie.
She adds that the 10-year minimum rental period for PLH flats as well as extra rigid marketing requirements might have discouraged purchasers. PLH flat owners go through a clawback aid of 6% when they offer their houses for the first time.
Sun assumes the better range of clients might mirror a lot more buyers resorting to the BTO market, given that BTO units are presently a lot more budget-friendly contrasted to rising costs of resale rentals as well as personal houses. “There have actually not been several new private house launches in current months. As a result, buyers currently have lesser housing options, particularly for cash-strapped purchasers,” she adds.
Sun attributes the appeal of the projects in mature estates to the enough facilities and distance to MRT terminals. “The Tampines property additionally has one of the shortest finalization periods, around 36 months,” she includes.