August BTO exercise sees strong demand for larger Ang Mo Kio and Tampines flats
Both projects launched under the prime location public housing (PLH) model– Havelock Hillside as well as Alexandra Vale, both situated in Bukit Merah– saw application rates of 2.7 for three-room flats and 6.1 for four-room houses. An overall of 8,883 applications were gotten for the 1,651 PLH units introduced.
She includes that the 10-year minimum rent period for PLH flats as well as a lot more stringent selling standards may have hindered purchasers. PLH apartment owners are subject to a clawback subsidy of 6% when they market their homes for the first time.
While PLH units were oversubscribed, Sun says the application rate was lower than in previous PLH debut. “Maybe the pool of purchasers has shrunk because numerous PLH version apartments have actually been released over the past year, and some people may have already purchased a unit in the earlier BTO exercises,” she suggests.
The August 2022 BTO exercise closed on Sept 5, with 39,136 applications for the 4,993 units launched for sale. This has to do with 30% greater than the roughly 27,000 applications received throughout the May BTO exercise when 4,583 units were launched, notes Christine Sun, higher vice director of research and analytics at OrangeTee & Tie.
Amongst the flats in non-mature estates launched, the property in Woodlands saw the highest possible application prices at 6.6 for two-room Flexi flats, 8.1 for three-room flats, as well as 11.7 for four-room homes. At the same time, flats at the projects introduced in Choa Chu Kang saw application rates in between 2.0 to 2.6, while the project in Jurong East saw application rates between 4.1 to 6.7.
Sun attributes the popularity of the projects in developed estates to the ample facilities as well as distance to MRT terminals. “The Tampines property additionally has one of the quickest end durations, around 36 months,” she adds.
Sun assumes the better amount of applicants might show extra customers resorting to the BTO market, given that BTO units are currently a lot more economical contrasted to increasing costs of resale apartments and personal houses. “There have actually not been numerous brand-new private house open in current months. For that reason, purchasers now have lesser housing choices, especially for cash-strapped purchasers,” she adds.
Big flats in developed estates saw the greatest applying rates. 4- and also five-room residences at Sun Plaza Spring in Tampines saw application rates of 22.3 and also 26.3 for the 150 and also 177 available condos, each. For Central Weave@AMK in Ang Mo Kio, the 398 four-room flats signed up a 12.6 application rate, while five-room as well as Three-Generation (3Gen) flats completing 372 units got a 17.5 application rate.