August BTO exercise sees strong demand for larger Ang Mo Kio and Tampines flats

The August 2022 BTO exercise closed on Sept 5, with 39,136 applications for the 4,993 units released available. This is about 30% greater than the approximately 27,000 applications received during the May BTO exercise when 4,583 units were launched, notes Christine Sun, higher vice director of research and analytics at OrangeTee & Tie.

Large apartments in older estates saw the highest possible applying rates. 4- and five-room flats at Sun Plaza Spring in Tampines saw application rates of 22.3 and also 26.3 for the 150 and 177 offered flats, respectively. For Central Weave@AMK in Ang Mo Kio, the 398 four-room flats registered a 12.6 application rate, while five-room and Three-Generation (3Gen) condos totalling 372 units gained a 17.5 application rate.

Sun thinks the higher number of consumers might show extra customers turning to the BTO market, considered that BTO units are currently more budget friendly compared to rising prices of resale flats and private houses. “There have not been several brand-new exclusive house release in recent months. Consequently, buyers currently have less real estate alternatives, specifically for cash-strapped customers,” she adds.

Avenir Condo Singapore

Among the apartments in non-mature estates launched, the property in Woodlands saw the highest possible application rates at 6.6 for two-room Flexi flats, 8.1 for three-room apartments, and also 11.7 for four-room apartments. On the other hand, flats at the projects introduced in Choa Chu Kang saw application rates between 2.0 to 2.6, while the project in Jurong East saw application rates in between 4.1 to 6.7.

Sun associates the appeal of the projects in mature estates to the sufficient facilities as well as closeness to MRT terminals. “The Tampines property also has among the quickest finalization periods, around 36 months,” she includes.

She incorporates that the 10-year minimum rental duration for PLH flats as well as a lot more rigid selling criteria may have prevented buyers. PLH condo owners go through a clawback subsidy of 6% when they offer their houses for the first time.

While PLH units were oversubscribed, Sun states the application rate was lower than in previous PLH debut. “Maybe the pool of buyers has actually shrunk because numerous PLH design flats have been launched over the past year, as well as some individuals may have currently gotten a unit in the earlier BTO exercises,” she suggests.

The two deals launched under the prime location public housing (PLH) design– Havelock Hillside and also Alexandra Vale, both located in Bukit Merah– saw application rates of 2.7 for three-room flats and 6.1 for four-room apartments. A total of 8,883 applications were received for the 1,651 PLH units introduced.

error: Content is protected !!