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 launched to sell. This is about 30% more than the about 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.
Among the flats 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. At the same time, apartments 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.
Sun thinks the higher number of consumers might show extra customers resorting to the BTO market, considered that BTO units are currently a lot more economical contrasted to rising rates of resale flats as well as exclusive homes. “There have not been lots of new personal home open in current months. As a result, buyers now have lesser real estate choices, specifically for cash-strapped purchasers,” she adds.
Huge flats in developed estates saw the greatest application rates. 4- as well as five-room apartments at Sun Plaza Spring in Tampines saw application rates of 22.3 and 26.3 for the 150 and also 177 readily 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 also Three-Generation (3Gen) apartments completing 372 units received a 17.5 application rate.
Sun attributes the popularity of the properties in developed estates to the enough amenities and also proximity to MRT stations. “The Tampines property additionally has one of the fastest finalization durations, around 36 months,” she includes.
Both deals launched under the prime location public housing (PLH) design– Havelock Hillside and Alexandra Vale, both located in Bukit Merah– saw application rates of 2.7 for three-room flats as well as 6.1 for four-room units. A total amount of 8,883 applications were received for the 1,651 PLH units released.
While PLH units were oversubscribed, Sun states the application rate was lower than in previous PLH launches. “Possibly the pool of purchasers has diminished because many PLH version apartments have actually been launched over the past year, as well as some individuals might have already gotten a unit in the earlier BTO exercises,” she says.
She adds that the 10-year minimum occupation duration for PLH apartments and much more rigid selling standards may have discouraged buyers. PLH condo owners are subject to a clawback aid of 6% when they offer their homes for the first time.