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 introduced for sale. This has to do with 30% greater than the roughly 27,000 applications acquired during the May BTO exercise when 4,583 units were launched, indicates Christine Sun, senior vice director of research and analytics at OrangeTee & Tie.
While PLH units were oversubscribed, Sun states the application rate was lower than in previous PLH debut. “Possibly the pool of purchasers has actually shrunk because lots of PLH version flats have actually been launched over the past year, and also some consumers might have currently gotten a unit in the earlier BTO exercises,” she says.
Amongst the apartments in non-mature estates introduced, the project in Woodlands saw the highest application prices at 6.6 for two-room Flexi apartments, 8.1 for three-room flats, and also 11.7 for four-room apartment or condos. At the same time, apartments at the projects released 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.
Sun believes the better range of consumers might reflect a lot more buyers relying on the BTO market, given that BTO units are currently extra budget friendly contrasted to climbing costs of resale apartments as well as private houses. “There have not been many brand-new personal house release in recent months. Consequently, purchasers currently have lesser housing alternatives, particularly for cash-strapped buyers,” she includes.
She includes that the 10-year minimum rent duration for PLH flats as well as much more stringent marketing requirements may have deterred customers. PLH condo owners are subject to a clawback subsidy of 6% when they market their residences for the first time.
Both projects introduced under the prime area public housing (PLH) model– Havelock Hillside and Alexandra Vale, both situated in Bukit Merah– saw application rates of 2.7 for three-room condos and also 6.1 for four-room condos. A total of 8,883 applications were gotten for the 1,651 PLH units launched.
Sun attributes the appeal of the properties in mature estates to the sufficient facilities and also distance to MRT terminals. “The Tampines property likewise has one of the fastest end periods, around 36 months,” she adds.
Large apartments in mature estates saw the greatest application rates. Four- and also five-room apartments at Sun Plaza Spring in Tampines saw application rates of 22.3 and 26.3 for the 150 as well as 177 offered condos, each. For Central Weave@AMK in Ang Mo Kio, the 398 four-room flats registered a 12.6 application rate, while five-room as well as Three-Generation (3Gen) flats totalling 372 units acquired a 17.5 application rate.