August BTO exercise sees strong demand for larger Ang Mo Kio and Tampines flats
Huge flats in mature estates saw the highest 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 and 177 offered flats, each. For Central Weave@AMK in Ang Mo Kio, the 398 four-room apartments signed up a 12.6 application rate, while five-room and also Three-Generation (3Gen) condos amounting to 372 units acquired a 17.5 application rate.
Amongst the apartments in non-mature estates introduced, the project in Woodlands saw the greatest application rates at 6.6 for two-room Flexi flats, 8.1 for three-room flats, and also 11.7 for four-room apartments. At the same time, apartments 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.
The two deals launched under the prime location public housing (PLH) model– Havelock Hillside as well as Alexandra Vale, both situated in Bukit Merah– saw application rates of 2.7 for three-room condos and also 6.1 for four-room flats. An overall of 8,883 applications were received 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 available. This is about 30% greater than the approximately 27,000 applications obtained throughout the May BTO exercise when 4,583 units were introduced, indicates Christine Sun, top vice head of research and analytics at OrangeTee & Tie.
Sun thinks the better range of clients might show a lot more purchasers looking to the BTO market, considered that BTO units are currently more budget-friendly compared to rising prices of resale condos as well as private residences. “There have not been several new personal residence release in current months. Consequently, customers now have fewer housing alternatives, specifically for cash-strapped buyers,” she includes.
While PLH units were oversubscribed, Sun says the application rate was lower than in previous PLH debut. “Maybe the pool of buyers has actually reduced because lots of PLH version flats have been released over the past year, as well as some individuals may have already acquired a unit in the earlier BTO exercises,” she says.
She incorporates that the 10-year minimum occupation duration for PLH apartments and more rigid marketing criteria might have prevented investors. PLH flat owners go through a clawback aid of 6% when they offer their homes for the first time.
Sun associates the popularity of the properties in mature estates to the adequate services and distance to MRT terminals. “The Tampines project additionally has one of the shortest finalization periods, around 36 months,” she adds.