HDB offers almost 7,000 units in June BTO exercise, including Prime flats in Tanjong Rhu and Holland Vista

SINGAPORE: The Housing and Development Board (HDB) launched a total of 6,938 flats for sale on Wednesday (Jun 19). 

Three of the eight Build-to-Order (BTO) projects, Tanjong Rhu Riverfront I and II in Kallang/Whampoa and Holland Vista in Queenstown, fall under the Prime Location Public Housing (PLH) model, which comes with higher subsidies, but also more restrictions if owners decide to sell their flats.

The other projects in the June launch, the second of three launches this year, are located in Jurong East, Tampines, Woodlands and Yishun.

This marks the last BTO launch where flats are still classified under mature/non-mature estates. The October launch will see new HDB flats classified as Standard, Plus or Prime, with different resale conditions attached to each housing type.

JUNE EXERCISE

The June sales exercise will be the first time eligible buyers can apply for new flats with a reduced initial down payment of 2.5 per cent of the purchase price, down from 5 per cent or 10 per cent.

Buyers pay the remaining down payment amount when they collect their keys, which is also when buyers can take up a housing loan and potentially receive a housing grant, if they are eligible.

Of the almost 7,000 flats up for sale in June, around half have waiting times of four years or less, said HDB. Those in Woodlands and Tampines have shorter waiting times of about three years.

With government grants, a three-room flat in Woodlands starts at S$132,000 and a four-room flat at S$219,000 in Yishun. In Tampines, a mature estate, the prices after grants start at $400,000 for a four-room flat.

Property analyst Christine Sun of OrangeTee said she expects high demand for the Tampines project, GreenTopaz, as buyers would be bound to a five-year minimum occupation period (MOP), while future flats in similar locations would be classified as Plus units, attracting an MOP of 10 years.

PRIME LOCATION HOUSING

The three prime location projects in the June launch - Tanjong Rhu Riverfront I and II as well as Holland Vista - come with a 9 per cent subsidy recovery rate. This means owners of such flats will have to return 9 per cent of the resale price or valuation (whichever is higher) if they sell their flats.

Prime location flats, like BTO flats, are priced lower than comparable resale flats, considering the location, individual flat attributes and prevailing market conditions, said HDB. 

"Given that new flats in prime locations naturally command higher market values, these PLH flats will be priced with additional subsidies on top of the substantial market discounts applied across all BTO flats," it added.

Twenty per cent of the PLH flats will be set aside for first-timer families and 2 per cent for second-timer families under the Married Child Priority Scheme. 

Mr Eugene Lim of ERA Singapore predicted healthy demand for the two Tanjong Rhu projects: "It is a new neighbourhood in the RCR (Rest of Central Region), with access to three MRT stations – a 15-minute trip to the city centre. It is also the first HDB project in the area in 60 years.”

Ms Wong Siew Ying, head of research at PropNex, was bullish about the 342-unit Holland Vista project. 

"Given the limited number of flats offered in this project, the application rate could likely trend higher, possibly beyond three times," she said.

"Similarly, there may be pent-up demand for new flats here, in view of a dearth of BTO launches in the Holland Drive area - with several HDB blocks mainly built in the 1970s, and some in the 1990s as well as in 2012."

APPLICATIONS FOR JUNE 2024 EXERCISE

Applicants who wish to participate in the June 2024 BTO exercise must have valid HDB flat eligibility (HFE) letters when they submit their flat applications. 

Flat applications can be made online via the HDB Flat Portal from Wednesday until Jun 26. 

Applicants can only apply for one flat type or category in one town under the BTO exercise. They do not need to visit HDB Hub to make their applications.

"Those who wish to improve their chances of securing a flat are encouraged to apply for a flat in the non-mature towns of Jurong East, Woodlands and Yishun, where at least 95 per cent of the four-room and bigger flats are set aside for first-timer families," HDB said. 

HDB will shortlist applicants using a computer ballot and not on a first-come-first-served basis. As such, there is no need to rush to submit applications, the Housing Board said.

Applicants who have received a queue position within the flat supply in the February BTO exercise will not be eligible to apply for a flat in subsequent BTO exercises until after their flat booking appointment. 

For the October BTO exercise, HDB will offer about 8,500 flats in Ang Mo Kio, Bedok, Bukit Batok, Geylang, Jurong West, Kallang/Whampoa, Pasir Ris, Sengkang and Woodlands.

HDB also advised prospective flat buyers who are interested in participating in the October exercise to apply for their HFE letters early and submit all required documents by Sep 15.