August BTO exercise sees strong demand for larger Ang Mo Kio and Tampines flats
Sun attributes the appeal of the properties in mature estates to the ample amenities and also distance to MRT terminals. “The Tampines project also has among the shortest end periods, around 36 months,” she includes.
The two deals introduced under the prime place public housing (PLH) version– Havelock Hillside and Alexandra Vale, both situated in Bukit Merah– saw application rates of 2.7 for three-room condos and 6.1 for four-room flats. A total of 8,883 applications were gotten for the 1,651 PLH units launched.
The August 2022 BTO exercise closed on Sept 5, with 39,136 applications for the 4,993 units released for sale. This is about 30% more than the roughly 27,000 applications acquired throughout the May BTO exercise when 4,583 units were launched, notes Christine Sun, top vice president of research and analytics at OrangeTee & Tie.
She includes that the 10-year minimum rent duration for PLH apartments and much more stringent marketing standards may have hindered buyers. PLH condo proprietors go through a clawback subsidy of 6% when they sell their residences for the very first time.
Big apartments in older estates saw the highest applying rates. Four- as well as five-room condos at Sun Plaza Spring in Tampines saw application rates of 22.3 and also 26.3 for the 150 and 177 readily 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) condos totalling 372 units received a 17.5 application rate.
Among the apartments in non-mature estates launched, the property in Woodlands saw the greatest application rates at 6.6 for two-room Flexi apartments, 8.1 for three-room apartments, and 11.7 for four-room homes. On the other hand, 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.
Sun assumes the greater range of applicants may reflect more purchasers relying on the BTO market, considered that BTO units are currently extra economical compared to increasing rates of resale apartments and also personal houses. “There have not been several brand-new personal residence launches in recent months. For that reason, purchasers now have fewer real estate options, specifically for cash-strapped customers,” she includes.
While PLH units were oversubscribed, Sun claims the application rate was less than in previous PLH debut. “Maybe the pool of customers has actually diminished considering that lots of PLH version flats have been released over the past year, and also some people may have currently acquired a unit in the earlier BTO exercises,” she believes.