BTO flats in Farrer Park, Ulu Pandan among nearly 4,500 on offer in February

Feb 28, 2023

TWO projects in prime locations are among five public housing projects that were launched for sale on Tuesday (Feb 28) by the Housing and Development Board (HDB). In total, 4,428 flats are up for sale under the board’s February Build-To-Order (BTO) exercise.

Buyer responses to Farrer Park Fields in Kallang Whampoa, and Ulu Pandan Glades will be keenly watched as both projects are being sold under the Prime Location Public Housing (PLH) model, which applies to flats in prime and central locations.

Farrer Park Fields flat prices start from S$185,000 for a two-room flexi flat, S$356,000 for a three-room flat, and S$484,000 for a four-room flat, excluding grants.

Transacted prices of resale flats near the project range from S$533,888 to S$568,000 for a three-room flat, and between S$660,000 and S$790,888 for a four-room flat.

OrangeTee & Tie’s senior vice-president of research and analytics Christine Sun expects strong demand for Farrer Park Fields, as the estate will be integrated with comprehensive sports and recreational facilities. “Such integrated developments are rare and likely to attract sports enthusiasts and families with young children,” she said.

Prices for the second PLH model project at Ulu Pandan Glades in Queenstown will start from S$372,000 for a three-room flat, and S$541,000 for a four-room flat, excluding grants.

Resale flats nearby have transacted between S$602,000 and S$730,000 for a three-room flat, and between S$860,000 and S$996,000 for a four-room flat.

Sun noted that the project is near the previous PLH project at Dover Forest, and may draw interest from those drawn to the area but had failed in their previous applications. Ulu Pandan Glades is also close to major transport nodes.

Huttons Asia’s senior director of research Lee Sze Teck noted that BTO projects stretching from Ulu Pandan to Ghim Moh are likely to be PLH projects.

“Buyers who want to stay in this area will have to try their luck at all the BTOs; otherwise, it will be a good 15 to 16 years’ wait before the PLH flats are available in the resale market,” he said.

According to ERA Singapore’s analysis, prices of the BTO flats in this exercise are about 23.2 per cent to 47.9 per cent lower than those of nearby resale flats.

Three-room BTO flats at Brickland Weave saw the biggest price discount of 47.9 per cent compared to neighbouring three-room resale flats, said ERA head of research and consultancy Nicholas Mak.

Four-room BTO flats in Farrer Park Fields had the smallest price discount of 23.2 per cent compared to nearby resale flats, he added.

Mak noted further that affordability of the latest BTO flats ranged from a median price-to-income ratio of 1.1 for a S$127,500 two-room flat in Tengah, to 5.2 for a 4-room flat in Ulu Pandan Glades costing S$626,000. He used the 2022 median household income of S$10,099 for his affordability calculations.



The median waiting time for BTO projects in this exercise stands at about 4.4 years.

Shorter waiting times can be expected for flats offered at Jurong West Crystal and Brickland Weave in Tengah, as application rates are typically lower in non-mature estates.

The waiting time for Jurong West Crystal is about 3.9 years, and about four years for Brickland Weave.

At least 95 per cent of the four-room and bigger flats in the two projects are set aside for first-timer families, which PropNex Realty’s chief executive Ismail Gafoor said might draw applicants looking for more spacious homes.

With Jurong West Crystal being within walking distance to Pioneer MRT station and having high accessibility to Jurong Lake District, OrangeTee’s Sun expects a “healthy take-up” of the project.

The area is going through significant development as part of government efforts to transform it into a second Central Business District, noted One Global Group’s senior analyst of research and content creation Mohan Sandrasegeran.

The project also offers the most affordable options for three-room and four-room flats in this exercise. The three-room flats range from S$187,000 to S$249,000, while the four-room flats cost between S$288,000 and S$372,000.

Sun noted that there may be more applications for Brickland Weave after the news of the relocation of Anglo-Chinese School (Primary), or ACSP, to Tengah. But as some blocks of the project may not fall within 1 or 2 km of the school, a big spike in numbers is not expected.

Huttons’ Lee suggested that buyers may choose to wait for the next Tengah launch in May, which will be situated next to the school and a future mixed-use development at Tengah MRT station.

Gafoor of PropNex Realty acknowledged that applicants may experience some inconveniences initially before Tengah becomes more developed, but demand for homes in the new town may still increase with the relocation of ACSP.

The Brickland Weave flats are estimated to be completed by the end of the second quarter of 2029, ahead of the school’s move in 2030.

Starting from this sales exercise, families under the Fresh Start Housing Scheme can purchase three-room flats on a shorter lease ranging from 45 to 65 years in five-year increments. This is provided the lease of the flat can cover the applicant and their spouse up to the age of 95.

With the newly announced increased Central Provident Fund housing grants for first-time buyers of resale flats, Sun noted that some BTO demand may be diverted to the resale market.

Gafoor pointed out that following the introduction of the enhanced grants for first-timers and raised income ceilings in September 2019, the overall application rate for the BTO exercise that month fell to 2.13 times, and resale flat volume rose in the following month of October.

In comparison, the May and February BTO exercises in the same year had application rates of 3.64 and 5.09 times respectively.

Lee does not expect the higher housing grants to have a noticeable impact on the BTO market this round.

There may also be buyers who prefer to wait for future launches, he said. Come May, HDB will offer about 5,400 BTO flats in Tengah, Bedok, Kallang Whampoa and Serangoon. In August, another 5,200 to 6,200 flats will be offered in Choa Chu Kang, Tengah, Bukit Merah, Kallang Whampoa and Queenstown.

https://www.businesstimes.com.sg/pro...offer-february