August BTO exercise sees strong demand for larger Ang Mo Kio and Tampines flats
The two projects launched under the prime area 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 homes. A total of 8,883 applications were gotten for the 1,651 PLH units introduced.
The August 2022 BTO activity closed on Sept 5, with 39,136 applications for the 4,993 units released for sale. This has to do with 30% greater than the roughly 27,000 applications received during the May BTO exercise when 4,583 units were launched, indicates Christine Sun, top vice head of research and analytics at OrangeTee & Tie.
Amongst the flats in non-mature estates released, the property in Woodlands saw the greatest application rates at 6.6 for two-room Flexi flats, 8.1 for three-room apartments, as well as 11.7 for four-room homes. At the same time, flats at the projects introduced in Choa Chu Kang saw application rates between 2.0 to 2.6, while the project in Jurong East saw application rates in between 4.1 to 6.7.
Sun associates the popularity of the properties in mature estates to the adequate facilities and closeness to MRT stations. “The Tampines property also has among the quickest completion durations, around 36 months,” she adds.
She incorporates that the 10-year minimum rental duration for PLH apartments as well as much more stringent selling standards may have prevented customers. PLH condo proprietors are subject to a clawback subsidy of 6% when they market their homes for the first time.
Sun thinks the greater amount of applicants may show much more purchasers resorting to the BTO market, considered that BTO units are presently a lot more inexpensive contrasted to increasing prices of resale apartments and also personal residences. “There have actually not been numerous brand-new exclusive residence launches in recent months. Therefore, buyers currently have less real estate options, especially for cash-strapped customers,” she includes.
While PLH units were oversubscribed, Sun claims the application rate was less than in previous PLH launches. “Maybe the pool of customers has actually diminished because numerous PLH design apartments have actually been introduced over the past year, and also some people might have currently acquired a unit in the earlier BTO exercises,” she suggests.
Large condos in mature estates saw the greatest application rates. Four- and five-room homes at Sun Plaza Spring in Tampines saw application rates of 22.3 and 26.3 for the 150 and 177 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 as well as Three-Generation (3Gen) condos amounting to 372 units got a 17.5 application rate.