August BTO exercise sees strong demand for larger Ang Mo Kio and Tampines flats
The August 2022 BTO activity closed on Sept 5, with 39,136 applications for the 4,993 units introduced to buy. This has to do with 30% more than the roughly 27,000 applications earned during the May BTO exercise when 4,583 units were introduced, notes Christine Sun, higher vice head of research and analytics at OrangeTee & Tie.
She adds that the 10-year minimum rent duration for PLH apartments and a lot more rigid marketing requirements may have discouraged purchasers. PLH apartment owners undergo a clawback subsidy of 6% when they market their homes for the very first time.
Amongst the flats in non-mature estates released, the project in Woodlands saw the highest application prices at 6.6 for two-room Flexi flats, 8.1 for three-room flats, and also 11.7 for four-room homes. On the other hand, 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 connects the appeal of the properties in mature estates to the enough facilities and also distance to MRT stations. “The Tampines property additionally has among the quickest completion periods, around 36 months,” she adds.
Both deals launched under the prime location public housing (PLH) model– Havelock Hillside and Alexandra Vale, both located in Bukit Merah– saw application rates of 2.7 for three-room condos and 6.1 for four-room flats. A total of 8,883 applications were gotten for the 1,651 PLH units opened.
Sun believes the better amount of clients may mirror a lot more buyers counting on the BTO market, considered that BTO units are currently more inexpensive compared to increasing costs of resale apartments as well as exclusive residences. “There have actually not been numerous brand-new personal home launches in recent months. For that reason, buyers now have lesser real estate choices, especially for cash-strapped buyers,” she includes.
While PLH units were oversubscribed, Sun says the application rate was lower than in previous PLH launches. “Perhaps the pool of buyers has actually diminished since lots of PLH model flats have been released over the past year, and some consumers may have already bought a unit in the earlier BTO exercises,” she suggests.
Large flats in older estates saw the highest application rates. Four- 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 as well as 177 offered apartments, respectively. For Central Weave@AMK in Ang Mo Kio, the 398 four-room apartments signed up a 12.6 application rate, while five-room and Three-Generation (3Gen) flats completing 372 units got a 17.5 application rate.