HDB launching some 4,500 BTO flats including 2 PLH projects in May

HDB launching some 4,500 BTO flats including 2 PLH projects in May

May 23, 2022

APPLICANTS for public housing in the May Build-To-Order (BTO) exercise can look forward to 2 projects under the Prime Location Public Housing (PLH) model as part of 4,500 units to be made available.

The 2 PLH projects will be in the mature estates of Bukit Merah and Queenstown, said the Housing and Development Board (HDB) on Monday (May 23). There will be 1,660 units in Bukit Merah and 860 units in Queenstown. Both projects will comprise 3-room and 4-room flats.

Flats under the PLH model come with stricter buying and selling conditions, including a 10-year minimum occupation period and a subsidy clawback at the first resale transaction.

Pointing out that prices for some resale 5-room flats in the vicinity of Bukit Merah and Queenstown — such as City Vue @ Henderson and Ghim Moh Valley — have exceeded S$1 million, Huttons Asia’s senior director for research, Lee Sze Teck, said the 2 PLH BTOs send a signal to the market that there will be affordable BTO flats and “perhaps curb the possibility of more record-breaking HDB flat prices”.

He estimates the 4-room flats at Bukit Merah could start from S$560,000 while the 4-room flats at Queenstown could start from S$500,000.

Christine Sun, senior vice-president of research & analytics at OrangeTee & Tie, said PLH flats may be a good alternative for young Singaporeans who may feel priced out of the market, especially for homes in the prime districts.

“Therefore, offering these PLH model flats on a regular basis may help close the income gap among Singaporeans,” she said. “Going by the current trend, PLH model flats may become a norm, and more of such flats could be released in every launch or at least twice a year.”

The other 3 towns involved in the May BTO launch are Jurong West, Toa Payoh and Yishun, wrote Minister for National Development, Desmond Lee, in a Facebook post on Monday.

While the 5 towns remain unchanged from what was announced in February 2022, 1 of the Bukit Merah projects originally planned for launch in May 2022 will be shifted to August 2022.

This is to allow more time to review the project, and to better spread out the location of projects in mature and non-mature estates at each launch, said Lee, adding that overall, HDB is on track to launch up to 23,000 new flats in 2022.

Noting that “a sizeable number of units” in the May 2022 BTO launch will be in mature estates to meet strong demand in these areas, he said buyers have more options this time.

“Nonetheless, we expect application rates for projects in mature estates to remain high. To maximise the chances of securing a flat, we encourage flat buyers to consider applying for BTO flats located in non-mature estates (eg Jurong West, Yishun), where the application rates are generally lower compared to most mature estates,” he wrote.

Lee said there had been “strong response” to the 2 PLH projects launched so far — in Rochor and Kallang/Whampoa. The PLH model was introduced in October 2021 to ensure that HDB flats in prime and central locations remain affordable and accessible.

Lee said that thus far, about 80 per cent of buyers who have been invited for the selection exercise for the first PLH project at Rochor, River Peaks I & II, have booked their flats, higher than the average of 60 per cent for most BTO projects.

“We will continue to assess the project’s locational attributes and market values, and continue to offer PLH projects in future sales exercises, if there are available and suitable sites,” he added.

There will also be a concurrent Sale of Balance Flats exercise, which will offer flats across various towns and estates islandwide.

“These flats are already under construction; some have even been completed. So buyers can look forward to getting their flats earlier,” he said.

https://www.businesstimes.com.sg/rea...rojects-in-may

May 2022 BTO exercise to include two Prime Location Public Housing projects

May 23, 2022

In a Facebook post on May 23, Minister for National Development, Desmond Lee, shared that two Prime Location Public Housing (PLH) projects will be included in the upcoming May 2022 Build-To-Order (BTO) sales exercise.

The PLH framework was rolled out by the government in 2021 balance the scales for public housing projects launched in prime and central locations. The framework is supposed to ensure that such flats in prime locations remain affordable and accessible over time.

In his Facebook post, the minister says that the first two PLH projects launched so far have garnered good response. “We are in the midst of the selection exercise for the first PLH project at Rochor, River Peaks I & II. About 80% of buyers who have been invited for the selection exercise thus far have proceeded to book their flats, higher than the average of 60% for most BTO projects,” says Lee.

The upcoming May 2022 BTO exercise will include 4,500 flats in Bukit Merah, Jurong West, Queenstown, Toa Payoh, and Yishun.

Lee Sze Teck, senior director (research) at Huttons Asia believes that the two upcoming PLH projects could be located at Bukit Merah and Queenstown. “Some 5-room flats in the vicinity like City Vue @ Henderson and Ghim Moh Valley have exceeded $1 million. There may be more million-dollar flat transactions in the months ahead,” says Hutton’s Lee.

He adds that if the government were to launch two PLH projects in Merah and Queenstown, it would send a signal to the market that there will be affordable BTO flats in these areas and might curb the possibility of more record breaking HDB flat prices.

His sentiment is shared by Christine Sun, senior vice-president of research & analytics at OrangeTee & Tie. She says that both neighbourhoods are prime locations and PLH projects there would be highly popular among buyers. Few new HDB flats are also under development in the nearby Bukit Merah and Holland Village areas.

Minister Desmond Lee also mentioned in his post that the government will “continue to offer PLH projects in future sales exercises, if there are available and suitable sites.”

“The popularity of the previous two PLH sites shows that many people are keen to purchase a PLH model flat despite the longer MOP and more stringent selling criteria. Perhaps more supply has been released into the market to meet the growing demand for such flats,’ says Sun.

She says that some young Singaporeans may feel that they have been priced out of the market, especially the ability to purchase a home in the prime districts.

https://www.edgeprop.sg/property-new...using-projects