August BTO exercise sees strong demand for larger Ang Mo Kio and Tampines flats
Sun attributes the popularity of the properties in developed estates to the ample amenities and distance to MRT terminals. “The Tampines project additionally has among the shortest completion periods, around 36 months,” she adds.
Sun thinks the greater range of clients may reflect a lot more buyers looking to the BTO market, given that BTO units are currently more budget friendly contrasted to rising prices of resale flats and private homes. “There have actually not been lots of new personal home open in recent months. Consequently, buyers currently have lesser housing options, specifically for cash-strapped purchasers,” she adds.
While PLH units were oversubscribed, Sun says the application rate was lower than in previous PLH launches. “Possibly the pool of buyers has actually diminished because numerous PLH model flats have actually been launched over the past year, and some people might have already acquired a unit in the earlier BTO exercises,” she believes.
The August 2022 BTO exercise closed on Sept 5, with 39,136 applications for the 4,993 units introduced available. This is about 30% more than the about 27,000 applications acquired during the May BTO exercise when 4,583 units were launched, notes Christine Sun, senior vice head of research and analytics at OrangeTee & Tie.
Amongst the apartments in non-mature estates launched, the property in Woodlands saw the highest application rates at 6.6 for two-room Flexi flats, 8.1 for three-room flats, and also 11.7 for four-room homes. On the other hand, apartments at the projects launched 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.
She adds that the 10-year minimum occupation duration for PLH apartments and also more stringent marketing criteria might have discouraged customers. PLH flat proprietors go through a clawback subsidy of 6% when they sell their houses for the first time.
Big rooms in mature estates saw the greatest applying rates. Four- and also five-room flats at Sun Plaza Spring in Tampines saw application rates of 22.3 as well as 26.3 for the 150 and also 177 available condos, respectively. For Central Weave@AMK in Ang Mo Kio, the 398 four-room flats registered a 12.6 application rate, while five-room as well as Three-Generation (3Gen) condos amounting to 372 units got a 17.5 application rate.
Both deals introduced under the prime area public housing (PLH) version– Havelock Hillside as well as Alexandra Vale, both situated in Bukit Merah– saw application rates of 2.7 for three-room condos as well as 6.1 for four-room units. A total of 8,883 applications were received for the 1,651 PLH units introduced.