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 to sell. This is about 30% more than the roughly 27,000 applications acquired throughout the May BTO exercise when 4,583 units were introduced, notes Christine Sun, top vice head of research and analytics at OrangeTee & Tie.
Both deals released under the prime area public housing (PLH) model– Havelock Hillside and also Alexandra Vale, both situated in Bukit Merah– saw application rates of 2.7 for three-room condos and 6.1 for four-room condominiums. A total amount of 8,883 applications were gotten for the 1,651 PLH units released.
Sun attributes the popularity of the properties in mature estates to the enough services and also proximity to MRT terminals. “The Tampines property also has among the quickest end durations, around 36 months,” she adds.
Sun thinks the better range of consumers may show a lot more customers counting on the BTO market, given that BTO units are currently a lot more budget friendly compared to climbing prices of resale condos and also exclusive houses. “There have actually not been many new personal house introduce in current months. For that reason, customers currently have less housing options, specifically for cash-strapped purchasers,” she adds.
Large apartments in older estates saw the highest possible applying rates. Four- and also five-room homes at Sun Plaza Spring in Tampines saw application rates of 22.3 and also 26.3 for the 150 and 177 readily available flats, each. For Central Weave@AMK in Ang Mo Kio, the 398 four-room flats signed up a 12.6 application rate, while five-room and Three-Generation (3Gen) flats completing 372 units received a 17.5 application rate.
She adds that the 10-year minimum occupation period for PLH apartments and much more rigid marketing standards might have discouraged purchasers. PLH flat owners go through a clawback subsidy of 6% when they offer their residences for the very first time.
Among the condos in non-mature estates introduced, the project in Woodlands saw the highest possible application prices at 6.6 for two-room Flexi apartments, 8.1 for three-room flats, and 11.7 for four-room homes. Meanwhile, flats at the projects released in Choa Chu Kang saw application rates in between 2.0 to 2.6, while the project in Jurong East saw application rates between 4.1 to 6.7.
While PLH units were oversubscribed, Sun claims the application rate was lower than in previous PLH launches. “Maybe the pool of customers has actually diminished because several PLH model apartments have actually been launched over the past year, and some people may have currently gotten a unit in the earlier BTO exercises,” she opines.