2 BTO projects draw only 111 on 1st day

http://www.businesstimes.com.sg/sub/...85879,00.html?

Published July 1, 2008

2 BTO projects draw only 111 on 1st day

Response affected by changes in HDB's application process

By ARTHUR SIM


THE Housing and Development Board launched two new BTO projects yesterday with a potential 1,587 flats. But at the end of the first day, only 111 applications were received - a big drop from previous launches this year.

http://www.businesstimes.com.sg/mnt/..._ASBTO1NEW.jpg
Good value: Four-room flats will cost $223,000-$278,000 at Punggol Breeze (above) and $207,000-$275,000 at Fernvale Residence. The flats will come with all the flooring and fittings completed

The latest launch comprises mainly four-room flats in two projects - Punggol Breeze at Punggol and Fernvale Residence at Sengkang.

The response to BTOs has been affected since HDB changed the application process in May so first-time buyers who reject two offers lose their priority for a year.

But there were still 400 applications on the first day for 1,485 BTO flats at Compassvale Pearl and Punggol Sapphire that month.

Earlier, the 494-unit Punggol Spring BTO attracted 278 applications on the first day of the launch in February.

While the low number of applications this time around may suggest that buyers have become more cautious in light of the weakening global economy, property consultants believe it is more a reflection of the location of the projects.

Recent BTOs have been in the Punggol and Senkang area, says PropNex chief executive Mohamed Ismail. 'What people really want are different locations.'

ERA Realty Network assistant vice-president Eugene Lim added: 'It is too soon to launch another BTO in the same area.'

Still, Mr Ismail believes the launches are 'timely' because many young couples cannot afford resale flats. 'Resale flats are traditionally more costly, especially with the island-wide median cash over valuation standing at $20,000,' he said. 'Renovations and furnishings usually add to these costs too.'

As such, Mr Ismail expects Punggol Breeze and Fernvale Residence to be at least two-times subscribed - even with HDB's new policies in place.

Four-room flats will cost $223,000-$278,000 at Punggol Breeze and $207,000-$275,000 at Fernvale Residence.

Mr Lim reckons that with the new supply expected in Sengkang and Punggol, price increase for resale flats there could be limited.

Prices for Fernvale Residence and Punggol Breeze flats are about 20-30 per cent lower than resale flat prices, he said. 'This is good value as these are premium flats that come with all the flooring and fittings completed, and buyers have but to do minimal fitting out.'

Oversupply - the new HDB rules have shown the real demand in the market. The greedy young couples will now only bank on the "good" locations. So all the complaints about not enough HDB to go around is BS. They just want the best possible location at 30% discount so that they can flip at the max profit and upgrade.

Greed is at work here.

Quote:

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Originally Posted by mr funny

http://www.businesstimes.com.sg/sub/...85879,00.html?

Published July 1, 2008

2 BTO projects draw only 111 on 1st day

Response affected by changes in HDB's application process

By ARTHUR SIM


THE Housing and Development Board launched two new BTO projects yesterday with a potential 1,587 flats. But at the end of the first day, only 111 applications were received - a big drop from previous launches this year.

http://www.businesstimes.com.sg/mnt/..._ASBTO1NEW.jpg
Good value: Four-room flats will cost $223,000-$278,000 at Punggol Breeze (above) and $207,000-$275,000 at Fernvale Residence. The flats will come with all the flooring and fittings completed

The latest launch comprises mainly four-room flats in two projects - Punggol Breeze at Punggol and Fernvale Residence at Sengkang.

The response to BTOs has been affected since HDB changed the application process in May so first-time buyers who reject two offers lose their priority for a year.

But there were still 400 applications on the first day for 1,485 BTO flats at Compassvale Pearl and Punggol Sapphire that month.

Earlier, the 494-unit Punggol Spring BTO attracted 278 applications on the first day of the launch in February.

While the low number of applications this time around may suggest that buyers have become more cautious in light of the weakening global economy, property consultants believe it is more a reflection of the location of the projects.

Recent BTOs have been in the Punggol and Senkang area, says PropNex chief executive Mohamed Ismail. 'What people really want are different locations.'

ERA Realty Network assistant vice-president Eugene Lim added: 'It is too soon to launch another BTO in the same area.'

Still, Mr Ismail believes the launches are 'timely' because many young couples cannot afford resale flats. 'Resale flats are traditionally more costly, especially with the island-wide median cash over valuation standing at $20,000,' he said. 'Renovations and furnishings usually add to these costs too.'

As such, Mr Ismail expects Punggol Breeze and Fernvale Residence to be at least two-times subscribed - even with HDB's new policies in place.

Four-room flats will cost $223,000-$278,000 at Punggol Breeze and $207,000-$275,000 at Fernvale Residence.

Mr Lim reckons that with the new supply expected in Sengkang and Punggol, price increase for resale flats there could be limited.

Prices for Fernvale Residence and Punggol Breeze flats are about 20-30 per cent lower than resale flat prices, he said. 'This is good value as these are premium flats that come with all the flooring and fittings completed, and buyers have but to do minimal fitting out.'

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http://www.straitstimes.com/Singapor...ry_253334.html

July 1, 2008

1,600 premium flats in Punggol, Sengkang for sale

Latest projects bring total build-to-order homes to 4,500 - in bid to meet demand

By Jessica Cheam


THE Housing Board launched 1,587 premium homes in Punggol and Sengkang for sale yesterday, the latest in a series of launches intended to meet high demand.

Its new projects - Fernvale Residence in Sengkang and Punggol Breeze - come just a month after 1,500

build-to-order (BTO) homes were released in the two up-and-coming locations.

Yesterday's sale brings the total number of new homes launched under the BTO programme to 4,524 for the first half of the year.

And more homes are underway with the HDB launching the sale of a plum site on Lorong 1A Toa Payoh by tender under its Design, Build and Sell Scheme last week. This was the sixth since the first site was awarded in January 2006.

The HDB's aggressive sales programme follows concerns that its stock of flats had dipped to an all-time low just as increasing numbers of newly-weds were turning to new flats after being priced out of the resale market.

But the chief executive of property agency PropNex, Mr Mohamed Ismail, cautioned that demand for the latest projects might fall off somewhat with the release of so many new flats.

The HDB's latest offering at Punggol Breeze comprises 778 four-room units priced from $223,000 and 186 five-room flats, which will go from $315,000.

At Fernvale Residence, 55 three-room units, 444 four-room flats and 124 five-room homes will be built, with prices ranging from $133,000 to $365,000.

Construction of the premium flats - they have better finishes which make them slightly more costly - will begin only after a certain demand is reached.

Punggol Breeze is bounded by Punggol Drive and Edgefield Plains, and is served by Oasis LRT station, two stops from Punggol MRT station, where the future town centre will be built.

Fernvale Residence is at the junction of Sengkang West and Fernvale Road, a stone's throw from Fernvale LRT station and Fernvale Point.

The HDB website www.hdb.gov.sg yesterday showed 111 applications for both new projects. Applications close on July 14.

Models of the estates are on display at the HDB Hub Habitat Forum in Toa Payoh until the closing date.

[email protected]

Can i know why are these "premium" flats?