reporter2
11-03-22, 10:28
ANALYSIS: Pros and cons of the Build-To-Order sites to be launched in May 2022
March 10, 2022
Strong demand for HDB
There is strong demand for Build-To-Order (BTO) flats as seen in the 24,748 applications received for 3,953 BTO flats launched in February 2022. This translates to an application rate of 6.3; up from 4.4 achieved during the BTO exercise in November 2021.
Of the six sites launched in February, King George’s Heights and Dakota Crest were the most over-subscribed. Both are in mature estates and King George’s Heights is the second Prime Location Public Housing (PLH) site. Interestingly, the application rate for Dakota Crest (17.4) is higher than King George’s Heights (13.3) despite not being PLH and launching more expensive 4-room flats. Launch prices for 3-room flats were similar for both sites.
The resale HDB market enjoys some spillover benefits from the buoyant BTO market because some unsuccessful BTO applicants divert their attention to the resale market. Additionally, some buyers change their buy intent from suburban condominiums to HDB resale flats after the recent cooling measures. The increased demand gave a boost to HDB resale prices which is now at a record high of $512 psf; significantly higher than the previous peak of $469 psf in 2013.
https://i.imgur.com/DKo9loi.png
The BTO exercise in May 2022 is closely watched because of the bumper crop of flats offered in the central region. Of the 5,330 flats across six sites that will be launched, 3,680 flats across four sites are in a central location. The two sites in Bukit Merah are also expected to be under the PLH model.
Central region: the crowd favourite
The two sites in Bukit Merah with 2,440 flats are expected to see the strongest demand due to their excellent location and proximity to an MRT station.
However, potential buyers should note that both sites are expected to be launched under the PLH model which means a longer Minimum Occupation Period (MOP) of 10 years instead of the usual five years. The longer MOP could make the flats less suitable for buyers who plan to sell their flats in the near future to fund their retirement or buy a larger home to accommodate their expanding family.
In addition, first buyers of such flats will have to refund a percentage of the sale price to HDB upon sale of the flat. This means that owners will have to sell their flat at a higher price to account for the refund or contend with a lower profit.
Read more at: https://www.edgeprop.sg/property-news/analysis-pros-and-cons-build-order-sites-be-launched-may-2022
March 10, 2022
Strong demand for HDB
There is strong demand for Build-To-Order (BTO) flats as seen in the 24,748 applications received for 3,953 BTO flats launched in February 2022. This translates to an application rate of 6.3; up from 4.4 achieved during the BTO exercise in November 2021.
Of the six sites launched in February, King George’s Heights and Dakota Crest were the most over-subscribed. Both are in mature estates and King George’s Heights is the second Prime Location Public Housing (PLH) site. Interestingly, the application rate for Dakota Crest (17.4) is higher than King George’s Heights (13.3) despite not being PLH and launching more expensive 4-room flats. Launch prices for 3-room flats were similar for both sites.
The resale HDB market enjoys some spillover benefits from the buoyant BTO market because some unsuccessful BTO applicants divert their attention to the resale market. Additionally, some buyers change their buy intent from suburban condominiums to HDB resale flats after the recent cooling measures. The increased demand gave a boost to HDB resale prices which is now at a record high of $512 psf; significantly higher than the previous peak of $469 psf in 2013.
https://i.imgur.com/DKo9loi.png
The BTO exercise in May 2022 is closely watched because of the bumper crop of flats offered in the central region. Of the 5,330 flats across six sites that will be launched, 3,680 flats across four sites are in a central location. The two sites in Bukit Merah are also expected to be under the PLH model.
Central region: the crowd favourite
The two sites in Bukit Merah with 2,440 flats are expected to see the strongest demand due to their excellent location and proximity to an MRT station.
However, potential buyers should note that both sites are expected to be launched under the PLH model which means a longer Minimum Occupation Period (MOP) of 10 years instead of the usual five years. The longer MOP could make the flats less suitable for buyers who plan to sell their flats in the near future to fund their retirement or buy a larger home to accommodate their expanding family.
In addition, first buyers of such flats will have to refund a percentage of the sale price to HDB upon sale of the flat. This means that owners will have to sell their flat at a higher price to account for the refund or contend with a lower profit.
Read more at: https://www.edgeprop.sg/property-news/analysis-pros-and-cons-build-order-sites-be-launched-may-2022