Strong demand expected for HDB flats at redeveloped Farrer Park site, 4-room prices above S$500,000: Analysts
SINGAPORE: Property analysts expect strong demand for the upcoming public housing estate in Farrer Park, given its desirable location and amenities.
About 1,600 flats will be built on a 10ha site in Farrer Park, the Housing & Development Board said on Monday (Apr 25), adding that the area will be redeveloped with integrated sports and recreational facilities.
"This seems to be the first (Build-to-Order) project to be built with a sports theme in recent years," said Ms Christine Sun, senior vice president of research and analytics at OrangeTee & Tie.
"Usually, thematic developments are found in private housing. Therefore, it is rare to find HDB flats being conceptualised and built according to a specific theme. Usually such developments may have a stronger appeal to buyers," she said.
The development's proximity to the city centre, as well as its amenities, are likely to appeal to a wide range of Singaporeans, said PropNex’s head of research and content Wong Siew Ying.
This includes City Square Mall, Mustafa Centre, Tekka Market, Piccadilly Galleria, as well as a number of schools including Farrer Park Primary School, St Joseph’s Institution Junior and Anglo-Chinese School (Junior).
Ms Sun said that the development could be launched under the Prime Location Public Housing (PLH) model, given its location and features. Two new PLH flats were also launched nearby in Rochor and Kallang Whampoa.
"There is a good chance that these flats will fall under the PLH model given its prime central location; launching them under PLH will make them more affordable and therefore accessible to more Singaporean households," said Ms Wong.
However, real estate firm Huttons Asia’s senior director of research Lee Sze Teck held a different view.
"The possibility of the flats falling under the PLH model is low," said Mr Lee. "The flats in the area have not reached the million dollar mark for now."
All analysts agreed that the new Build-To-Order flats may see prices of S$500,000 and above, given that four-room and five-room resale flats in the area are currently transacting at S$700,000 or more.
The flats are likely to be oversubscribed - previous nearby BTO launches for Kent Heights, River Peaks I & II, and King George’s Heights saw an oversubscription for all three projects, said Ms Sun.
"The overall application rate for this site may exceed 10 if launched as PLH flats and exceed eight if they are BTO flats, depending on the market condition when launched," she said.
Mr Lee said that a subscription rate of more than 10 may be observed.