August BTO exercise sees strong demand for larger Ang Mo Kio and Tampines flats
Huge rooms in developed estates saw the greatest applying rates. Four- and five-room residences at Sun Plaza Spring in Tampines saw application rates of 22.3 and also 26.3 for the 150 as well as 177 available condos, respectively. For Central Weave@AMK in Ang Mo Kio, the 398 four-room apartments signed up a 12.6 application rate, while five-room and Three-Generation (3Gen) apartments amounting to 372 units acquired a 17.5 application rate.
She incorporates that the 10-year minimum occupation duration for PLH apartments and a lot more rigorous marketing requirements might have prevented buyers. PLH apartment owners go through a clawback subsidy of 6% when they sell their houses for the first time.
While PLH units were oversubscribed, Sun says the application rate was less than in previous PLH kick off. “Maybe the pool of purchasers has actually shrunk considering that many PLH model flats have been launched over the past year, and some individuals may have already bought a unit in the earlier BTO exercises,” she suggests.
Sun assumes the higher range of clients might mirror much more buyers looking to the BTO market, given that BTO units are currently more budget friendly compared to increasing rates of resale flats as well as exclusive homes. “There have actually not been lots of new private residence introduce in recent months. Consequently, buyers now have less real estate alternatives, specifically for cash-strapped buyers,” she includes.
Sun connects the popularity of the projects in mature estates to the ample facilities and proximity to MRT terminals. “The Tampines property also has among the shortest end durations, around 36 months,” she adds.
Amongst the flats in non-mature estates launched, the project in Woodlands saw the highest application prices at 6.6 for two-room Flexi apartments, 8.1 for three-room apartments, and 11.7 for four-room apartments. At the same time, flats 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 in between 4.1 to 6.7.
The August 2022 BTO activity closed on Sept 5, with 39,136 applications for the 4,993 units released to sell. This has to do with 30% greater than the about 27,000 applications collected during the May BTO exercise when 4,583 units were launched, indicates Christine Sun, senior vice president of research and analytics at OrangeTee & Tie.
Both deals introduced under the prime place public housing (PLH) design– Havelock Hillside as well as Alexandra Vale, both located in Bukit Merah– saw application rates of 2.7 for three-room apartments as well as 6.1 for four-room apartments. A total amount of 8,883 applications were obtained for the 1,651 PLH units opened.
