August BTO exercise sees strong demand for larger Ang Mo Kio and Tampines flats
The August 2022 BTO activity closed on Sept 5, with 39,136 applications for the 4,993 units launched to buy. This is about 30% greater than the approximately 27,000 applications earned throughout the May BTO exercise when 4,583 units were launched, notes Christine Sun, higher vice head of research and analytics at OrangeTee & Tie.
While PLH units were oversubscribed, Sun says the application rate was less than in previous PLH kick off. “Possibly the pool of customers has actually shrunk since lots of PLH version flats have been released over the past year, and some consumers may have currently acquired a unit in the earlier BTO exercises,” she says.
Sun attributes the appeal of the projects in developed estates to the sufficient facilities and also proximity to MRT terminals. “The Tampines project additionally has one of the quickest end periods, around 36 months,” she adds.
Both projects released under the prime location public housing (PLH) version– Havelock Hillside and Alexandra Vale, both situated in Bukit Merah– saw application rates of 2.7 for three-room flats and also 6.1 for four-room units. A total amount of 8,883 applications were received for the 1,651 PLH units introduced.
Sun believes the greater number of applicants might show extra purchasers looking to the BTO market, considered that BTO units are presently more cost effective compared to rising prices of resale rentals and personal houses. “There have not been numerous brand-new private house launches in recent months. Therefore, purchasers currently have fewer real estate alternatives, particularly for cash-strapped buyers,” she includes.
Amongst the flats in non-mature estates launched, the project in Woodlands saw the greatest application rates at 6.6 for two-room Flexi apartments, 8.1 for three-room flats, and also 11.7 for four-room houses. 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 in between 4.1 to 6.7.
Big condos in mature estates saw the highest possible application rates. 4- and five-room homes at Sun Plaza Spring in Tampines saw application rates of 22.3 and 26.3 for the 150 as well as 177 readily available apartments, respectively. For Central Weave@AMK in Ang Mo Kio, the 398 four-room apartments registered a 12.6 application rate, while five-room and also Three-Generation (3Gen) condos amounting to 372 units got a 17.5 application rate.
She incorporates that the 10-year minimum rental period for PLH flats and a lot more rigorous marketing criteria may have deterred customers. PLH condo proprietors are subject to a clawback aid of 6% when they offer their residences for the first time.