Kallang PLH launch surprises with lower median pricing than nearby BTO flats

Feb 17, 2022



KING George's Heights, the second batch of public housing flats to be launched under the HDB's new prime location housing (PLH) model, is expected to draw strong demand with its pricing pitched below previous build-to-order (BTO) launches in the area.

Comprising 398 units in a single block in Kallang/Whampoa, the project comes with a 6 per cent subsidy clause and is estimated for completion in Q3 of 2027. The block, with 2 wings of 33 and 47 storeys, is bounded by King George's Avenue, Syed Alwi Road and Rochor Canal, and located near Lavender MRT station.

Unit prices start from S$353,000 for a 3-room flat and S$488,000 for a 4-room flat notwithstanding grants, with 104 units of 3-room flats and 294 units of 4-room flats available.

Orange Tee & Tie's senior vice-president of research and analytics Christine Sun noted that the prices seem to be slightly lower than previous BTO launches in Kallang/Whampoa. At their highest point, 4-room BTO flats at Kempas Residences were sold in 2019 at prices ranging from S$562,000 to S$674,000, with median prices at S$618,000. The latest launch at King George's Heights has 4-room flats priced from S$488,000 to S$675,000, with median prices at S$581,500.



Sun said that the lower pricing could be to compensate for the longer MOP (minimum occupation period) for PLH flats, which are subject to a 10-year MOP period before they can be be sold or rented out, and stringent buying and selling restrictions.

Demand for BTO flats in the Kallang area has always been high, Sun said. She sees appeal in King George's Heights for its proximity to train stations and location at the fringe of the downtown core - which will be "very convenient for couples working in the Central Business District".

"The site is also quite near the first (PLH project) launch at Rochor - River Peaks. After seeing the strong demand and popularity of the first launch in Rochor, some potential buyers may be motivated to apply for these flats," said Sun.

PropNex chief executive Ismail Gafoor similarly expects the King George's Heights project to be especially well-subscribed. He estimates subscription rates to likely exceed 3 and 7 times for the 3-room and 4-room flat types, respectively.

"This project presents another opportunity for those who have missed out on the BTO flats in Rochor in November to try to secure a flat in the area," he said.

King George's Heights was one of several BTO launches announced on Thursday (Feb 17) in the Housing and Development Board's February 2022 Build-To-Order (BTO) exercise. In total, 3,953 BTO flats will come onstream from the February exercise.

Another potentially popular project from HDB's latest BTO exercise is Dakota Crest at Geylang, which offers 443 units across 2-room flexi, 3-room and 4-room flat types.

PropNex's Gafoor foresees high subscription rates for the project based on previous application trends in Geylang.

He believes applicants may still be "highly interested" in the Dakota Crest BTO launch despite its long completion time of 63 months as it is one of the most conveniently located projects of the latest BTO exercise, in his view.

The lack of 5-room flats offered at King George's Heights and Dakota Crest may drive larger families to opt for projects in non-mature estates such as Tengah and Yishun, says Ohmyhome research and content analyst Mohan Sandrasegeran

"Although buying a flat at the Tengah area is banking on the future success of the estate, previous rounds of BTO exercises have generated interest in the area," noted Sandrasegeran.

"Comparatively, Yishun is considered more developed in terms of the availability of amenities… The last BTO project launched in Yishun was in 2018. We may expect more interest this round for these sites at Yishun."